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Govt seeks WB hand in renewing green jute
Dhaka, March 2, 2010 (bdnews24.com)-: State minister for environment and forest Hasan Mahmud sought the World Bank's cooperation in
revamping the jute industry as demand for jute products grows worldwide. World Bank's South Asian director Pulock Chatterji called on the minister at his office on Tuesday. Ministry spokesperson Mustafa Kamal Pasha briefed reporters after the meeting.
The minister said that jute production was environmentally sound as cultivation requires less use of fertiliser and pesticides compared to other crops, while jute products are biodegradable.
Hasan Mahmud said the demand for jute products was growing worldwide precisely because the industry is seen as a green one with no little impact on the environment.
The Bangladesh economy could experience a great boost if decommissioned jute mills are reopened, the minister said. It would also generate ample employment opportunities and provide environmentally sustainable industry.
Regaining global jute market
February 8, 2010: BANGLADESH'S jute export in the international market is faced with formidable challenges from India. Pakistan had been an important buyer of raw jute from Bangladesh. But now there is a risk of losing many markets
including Pakistan. Following the recent government ban on export of raw jute, some Bangladeshi traders are smuggling huge quantities of jute to businesses in India who are exporting the same to Pakistan. The smuggling has fulfilled demand for raw jute to run some 70 percent of jute mills in the neighbouring country and given Indian traders an edge over Bangladesh's to export of raw jute. India, the biggest importer of raw jute has turned into the biggest exporter of jute goods. Indian traders are reportedly offering Pakistan, Germany, Japan, China and some other countries raw jute at cheaper rates than those of Bangladesh traders.
Apprehensions that the ban of export of raw jute might lead to smuggling out of raw jute and loss of jute market have proved true. Urgent steps with necessary policy adjustment should be taken to stop this negative development and recover the market. Bangladesh has a number of advantages in jute trade. Favourable soil and weather conditions and expertise of
farmers helped the country remain the main producer of high quality jute. This eco-friendly and biodegradable natural fibre has a high demand internationally. These factors are expected to help Bangladesh to regain the glory of jute. Ban on export of raw jute, which has proved suicidal, should be substituted immediately by more suitable measures as has been ordered by the prime minister. Pakistan, USA, UK and the EU have also requested Bangladesh to review its decision of banning raw jute export. Vigilance at the border without withdrawal of the ban is unlikely to bring an end to jute smuggling. Source: The New Nation
Traidcraft, BJRI sign MoU to develop jute, jute seeds
Dhaka, Friday January 29 2010 Traidcraft Exchange Bangladesh office and Bangladesh Jute
Research Institute (BJRI) signed a memorandum of understanding (MoU) in the city Thursday to work jointly towards developing jute and jute seeds in Bangladesh, said a press release.
BJRI Director (Agriculture) Hosne Ara and Traidcraft Country Director Shahed
Ferdous signed the MoU on behalf of their respective organisations.
Also present at the signing ceremony were BJRI Director General Md Kamal Uddin
as the chief guest and Tarango Executive Director Kohinoor Yeasmin as the implementing partner of Traidcraft Exchange for the Golden Fibre project along
with other high officials of the respective organisations.
Under the MoU, BJRI will provide necessary technical support such as training on
improved cultivation techniques, modern retting technology and improved seed
production to help jute growers better their capacity to achieve higher yields
and better quality jute fibre.
Traidcraft Exchange, in partnership with Tarango -- a national NGO, has been
implementing, 'Golden Fibre: Sustainable Livelihoods for Jute Growers and Producers' project in Bangladesh.
Golden Fibre is a five-year long project, which aims at improving the income and
livelihoods of 3,250 jute growers and 250 jute craft producers in Faridpur and
Gopalganj. Source: FE Report
Export ban on raw jute relaxed further
January 20, 2010 (FE Report): The government has further relaxed the export ban on raw jute despite the
scarcity of the fibre in the domestic market. Under the move, the government has allowed export of entire raw jute, for which
letters of credit (LCs) were opened for shipment before imposition of the export
restriction on December 7 last. "As per the Bangladesh Bank (BB) list, the entire volume of raw jute, both
awaiting shipment at the port and under process, against which LCs were opened
with 16 banks until December 7 can be exported," said a statement, issued Monday
by the Textile and Jute Ministry. Besides, the ministry issued another statement on Tuesday, saying export of BTR
(Bangla white rejection) grade of raw jute would not be allowed, said an informed source.
Previously, the same ministry in a circular allowed export of raw jute waiting
at ports for shipment after the imposition of the export ban. Expressing their worries over the latest relaxation of the export ban, the
sector insiders said it will further worsen the supply problem of raw jute for local mills.
The raw jute price has already crossed Tk 2000 per maund, a private jute mill
operator said, apprehending a further rise in the basic raw material used by the
local jute mills. He also cautioned that if the price hike and supply crisis of raw jute persist,
many of the local jute mills might face closure.
Bangladesh withdraws raw jute export ban
DHAKA, Jan. 3, 2010 (Xinhua) -- The Bangladeshi government has lifted the ban on export of raw jute amid pressures by the jute traders, leading English newspaper The Financial Express reported on Sunday. Earlier on Dec. 7, 2009, the government imposed a ban on
export of raw jute mainly to ensure adequate availability for the local jute mills, which were facing trouble in procuring the raw material because of price hike in the domestic market.
The export prices for raw jute has hiked to 600 U.S. dollars per ton in 2009 against 525-550 U.S. dollars in 2008. At the same time, the domestic prices jumped to 1,700 taka (24.3 U.S. dollars) to 1,800 taka (25.7 U.S. dollars) a maund (40 kg) from 1,200 taka (17.1 U.S. dollars) to 1,250 taka
(17.9 U.S. dollars) per maund.
A senior official at the ministry of Textile and Jute said on Saturday, "The government has withdrawn the ban Thursday considering the financial losses by the jute traders."
"We've learnt about the decision relating to the withdrawal of the ban by the ministry," Sheikh Farook Hossain,
chairman of Bangladesh Jute Association (BJA), was quoted as saying by The Financial Express.
India, Pakistan, China are the large buyers of local jute while Britain, Spain, Ivory Coast,
Germany and Brazil also import raw jute from Bangladesh. Bangladesh is the world's largest jute growing country and it produces around 5.5 million bales (1 bale equals about 180 kg) of jute each year. BJA sources said local exporters had exported 850,000 bales prior to the imposition of the ban.
Reopening of closed mills
Dhaka, December 23, 2009: The prime minister has indicated that the closed jute
mills might be reopened when Sramik League stalwarts called on her on the occasion of foundation day of the Sramik League. Similar declaration of opening
of closed mills was given by the industries minister, just after taking charge
of the ministry. Unfortunately, nothing tangible could be perceived till date
regarding restart of Chittagong Steel Mills, though this lone mill in the steel
sector was closed between 1996-2001 and the industries minister of the present
government hails from Chittagong. It is needless to describe the importance of
steel, and reopening the lone steel mills should be a priority for the government, I believe.
It appears that the govt is bent upon reopening partially Adamjee Jute Mills
closed during BNP rule, but there are around 78 jute mills in the country. However, whatever may be the policy of the govt, attempts should be made to
restart steel mills soon because steel mills can never be restarted again without arranging training abroad, if delayed.
Source: The Daily Star
Bangladesh bans raw jute exports on poor yield
DHAKA, December 8, 2009 (Reuters): Bangladesh has banned the export of raw jute with immediate effect due to poor yield following an erratic
monsoon, officials said ...Bangladesh Bans Jute Export Amid Soaring Global Demand for Climate Change.
Fire guts 12,000 maunds of raw jute & jute materials
BSS, Faridpur, November 24, 2009: About 12,000 maunds of raw jute and jute materials were gutted in a big fire in a jute mill at Kanaipur BSCIC Industrial Estate in the district on Saturday evening. Additional Deputy Commissioner (General) Abdul Wahab
Bhuiyan, who visited the mill, told BSS that he along with Police officials stayed there for two hours and found that the godown of the Saif Jute Mill was burnt in the fire. The fire also caught a big fuel container
of about 9,000 liters of specialized fuel for jute processing, a mill source said.
Fire fighter vans from Faridpur, Rajbari, Boalmari and Magura rushed to the spot at Kanaipur BSCIC Estate beside the Dhaka-Khulna highway in the suburb of the town. Finally, the fire was brought under control in the early hours of Sunday. Source: The New Nation
Govt considers reopening of three jute mills
Bangladesh, August 26, 2009: The government is considering immediate reopen of three closed jute mills, chairman of the parliamentary standing committee on jute and textiles ministry said yesterday. The three mills are Kowmi Jute Mills in Sirajganj, Doulatpur Jute Mills in Khulna and unit-2 of Adamjee jute mills in Narayanganj.
After a meeting of the Parliamentary Standing Committee on Jute and Textiles Ministry at the Jatiya Sangsad media centre its Chairman Akhteruzzaman Chowdhury said that the meeting discussed reopening of the mills within this year, a reversal of the sudden shutdown of the famed
industry under a donor-prescribed structural adjustment programme. Replying to a question, he said out of a total 27 jute mills under Bangladesh Jute Mills Corporation (BJMC), five remained closed, three totally closed and two partially.
Source: Bangladesh Time
Jute price decline worries farmers
Mymensingh, August 4, 2009: Jute price has declined to Tk 1,000 or below per maund in the primary markets, worrying the farmers and encouraging smugglers.
State owned jute mills made some 'lucky purchase' at Tk 1,600 per maund at the beginning of the season in June. Early crop was sold at Tk 1,000 and below at Shambuganj market a couple of days ago. The price in markets of Faridpur, quality jute growing district, was better, sold this week at prices varying from Tk 1100 to 1400 per
maund. Mill owners and traders apprehend that the price may decline further if the banks delayed financing the mills and traders.
They said low price in the domestic market will encourage smuggling of jute across the border where the demand is high. The Advisory Committee on Jute meeting on July 5 with Jute & Textile
Minister Abdul Latif Siddiqi in the chair directed the state owned banks to extend loans to the mills and traders.
Source: The New Nation
Bangladesh unhappy over tax on 'duty-free' garment
Dhaka, July 20,2009: The industrial lobby of Bangladesh on Monday urged India to do away with certain import taxes imposed on Bangladesh garments even though these are supposed to be
duty-free under the South Asian Free Trade Area (SAFTA) agreement. Under the agreement signed in 2007, Bangladesh can export eight million garments to India every year duty-free.
''Although the import duty is nil, there are some levies such as education tax and VAT which are being imposed. This is impeding exports under the scheme,'' Annisul
Huq, president of the Federation of Bangladesh Commerce and Industry, said during a conference in Dhaka. Speaking on the sidelines of the conference on India-Bangladesh economic relations co-organised by the
Federation of Indian Chambers of Commerce and Industry, Huq said, ''We have been given 8 million pieces of duty-free garments, but although the customs duty is
nil, there are almost 18 per cent taxes. So the benefit of the scheme is not being fully utilised.'' He added
that thanks to the additional imposts, a mere 10 per cent of the total quota was currently being met.Trade expansion and reduction of the current trade imbalance in favour of India were the agenda-topping subjects at the conference. A 48-member FICCI delegation arrived in Dhaka
for the conference.
Source: domain-b.com
25,000 jute workers lose jobs in Bangladesh
DHAKA, February 6, 2009 (AFP): Bangladesh's crucial jute sector has shed 25,000 jobs and shut
three factories after a massive slump in export triggered by the global economic
downturn, the industry said Thursday. The Bangladesh Jute Spinners Association said the country's 59 jute yarn
factories had slashed production by 30 percent in the last three months as demand for their products nosedived in European markets.
"In the last month, the factories have cut more than 25,000 jobs. Three jute
spinners... have already been shut down," said secretary general Shahidul
Karim. According to the government's Export Promotion Bureau, jute goods exports
plunged by 18 percent to 136.83 million dollars in the six months to December.
"The situation is getting worse day by day as the global recession has wreaked
havoc on the European companies to whom we supply most of our jute yarn. In the
next few weeks more factories will have to draw shutters," he said.
Jute goods -- such as sacking, yarn and floor carpets -- are Bangladesh's third
largest export. The sector directly employs some 125,000 people, plus more than
20 million farmers grow it as cash crop every year.
Five govt jute mills leased out to private sector
Bangladesh, July 13m 2008: Terming state-owned jute mills as 'losing concerns', the Textile and Jute Adviser Md Anwarul Iqbal yesterday declared leasing out five state-owned
jute mills to private management for five years. Such initiative by the government will create employment for more than 6000 people, the Jute Adviser Anwarul said while speaking at a Press Conference at the Textile and Jute Ministry Auditorium in the Secretariat.
The People's Jute Mills has been leased out to M/s Kazi Farms Ltd at Tk
6.13 crore annually, RR Jute Mills at Tk 1.50 crore and M M Jute Mills at Tk 1.26 crore to Nature Back limited, Karnaphuli Jute Mills at Tk 3.11 crore and FKCF jute mills at Tk 0.48 crore to M/s Saad Musa Fabrics Ltd. Besides, the Government has invited tender again to lease out the Kaomi
Jute Mills and BDCF Jute Mills as no acceptable bid was available.
"The government will receive Tk 12.48 crore from the five leased out mills as lease money annually," he said adding, "We shall be able to spend the cash for paying outstanding arrears of laid out jute mills' workers and
also pay loan of the banks." "It is the first step to create employment generation of the government in
this sector," the Jute Adviser said adding "The government initiative will
help to revive the sector." The productivity of the leasing mills in aggregate will be 33,780 tonnes of jute goods annually, the adviser said. People's Jute Mills will resume production on July 15, Karnaphuli Jute
Mills and FKCF Jute Mills on July 20. Besides, the RR Jute Mills has started production on July 1 last. The MM
Jute Mills will start production by next one month.
Source: The New Nation
Four govt jute mills resume operations next month
Bangladesh, June 5, 2008: Operations of four state-owned jute mills will resume in a full swing from next month under private management. The four jute mills are Peoples Jute Mills Limited, Karnafuli Jute Mills Limited, Forat-Karnaphuli Carpet Industries Limited and Alim Jute Mills Limited. These mills are among the 8 jute mills the government brought under its new scheme allowing operations of those by
private entrepreneurs.
As per a private lease agreement, initially for a period of five years, with the government recently, four
organisations will go into production from the first day of July. Bangladesh Jute Mills Corporation (BJMC) Chairman Md Atharul Islam yesterday told The Daily Star, “We have signed a roadmap with the lease holders which directed that these four mills will go into commercial operation from the first day of July.”
Presently, there are 20 jute mills under the state-run BJMC.The Council of Advisers' Committee on Economic Affairs approved the initiative last October to handover the loss making mills to private operators. Meanwhile, 6000 workers, who were retrenched after closure of the four jute mills that have already been leased out, demanded their reinstatement in the mills on humanitarian ground.
People's Jute was shut down on August 1, 2007, while Alim Jute was laid off for one month from
September 22, 2007. At present about 55 lakh bales of jute are produced from 12 to 14 lakh acres of land in the country, but some 70 lakh bales were cultivated on 20 lakh acres in the sixties. In the sixties, the demand for raw jute in the world market was more than 60 lakh bales.
Bangladesh earned US$ 242.89 million from exports of jute goods during the first nine months
(July- March) of the current fiscal, marking a 1.40 percent decline over the last year's level. The country fetched $ 127.94 million from raw jute exports during the period, which is a 13.27 percent rise over the last year's corresponding period's performance.
Source: The Daily Star
The Adamjee Jute mills closure
February 3, 2008: With the closure of the world's largest jute industry, “The Adamjee Jute mills” the jute sector of the country has been passing through a crisis. Besides the Adamjee Jute industries, some other jute industries located at Jessore and Khulna areas have faced closure. In the last two years, two-three public sector jute industries have been closed.
Jute was once our number one foreign currency earner. Those good days are over now with the mismanagement and malpractice in the jute sector. As a result, once the most flourishing jute industries are now on the verge of elimination.
The issue deserves a closer look since the industry can still contribute to our economy. What is needed is proper planning.
Source:The Daily Star
Brazil moves to file anti-dumping case against Bangladesh jute yarn
January 4, 2008 : Brazil has initiated a case against Bangladesh with the World Trade Organisation (WTO) and issued a notice of intent to impose anti-dumping duty on jute yarn. In the notice Brasilia asked for Dhaka's explanation as to why Brazil should not impose duty on jute yarn as the product is being exported to that country at a price below the production cost.
The notice served on November 7, 2007 through the Bangladesh Embassy in Washington had stipulated a 40-day ime both for the government and individual exporters to respond to the complaint.
If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be 'dumping' the product.
Meanwhile, local exporters, except one, feel reluctant to make any reply to the Brazilian notice as they see
Bangladesh's exports volume to that country 'not significant in terms of quantity.' But the government bodies expressed their concern over the exporters' attitude saying if the matter is not taken into consideration, other importing countries may take it as a precedent in future. "Initiation of such a case and the possible imposition of duty will make it evident that Bangladeshi companies are dumping their products in other countries which should not be going on," said Mostafa Abid Khan, deputy chief of Tariff Commission and a trade negotiation expert.
He said the exporters should respond to the notice in the greater trade interest of the country. "In 1992, Brazil initiated a similar case against Bangladeshi and Indian jute goods, but Bangladesh did
not reply. India, however, responded to Brazil's complaint and finally, Brazil imposed duty on
Bangladeshi jute goods but lifted the case against India," another official of the Tariff Commission said.
Source: The Daily Star
Handicraft makers get $1.07m order
in Hong Kong Fair
November 7, 2007, Bangladeshi manufacturers of jute and handicraft products received export orders worth 1.07 million US dollars at the recently concluded China Sourcing Fair for Gift & Home
Products. The fair was held in Hong Kong between Oct 20 and 23, according to a press release. Six
Bangladeshi companies were among the 3700 participants from all over the world.
Bangladeshi entrepreneurs for the first time participated in the fair to exhibit handicrafts made of
jute, natural plant and leather. Bangladesh's participation in the fair created huge opportunities for the country's manufacturers of gift and household products to explore potential export markets in the Far East, according to Export Promotion Bureau
(EPB). EPB, in cooperation with Bangladesh consulate in Hong Kong, facilitated the companies' participation in the fair.
Source: The Daily Star.
Bangladesh Jute Mills Corporation
(BJMC) sacked a total of 5908 workers
October 26, 2007:
Bangladesh Jute Mills Corporation (BJMC) sacked a total of 5908 workers from its jute mills on October 1 under the government's "jute sector reform" plan, sources concerned said. The number of total retrenched workers reached 13,000 during the last 10 months as some 9000 workers were forced to retire under a new trade rule, they added.
Sector insiders say that the government move, if implemented, would render more than 20,000 workers and employees jobless. They will be sent into voluntary retirement under a scheme to be
implemented by December this year.
Jute workers and trade union leaders termed the decision suicidal for the country's industries. "It is nothing but a conspiracy, orchestrated by the international lending agencies, against Bangladeshi industries," said Shahidullah Chowdhury, a veteran trade union leader and expert in the sector.
At present, there are 22 jute mills under BJMC with over 43,000 workers and employees on its pay roll.
The Government also shut four out of 22 mills in the public sector recently in a bid to reduce public sector losses. The previous government shut down the country's
largest Adamjee Jute Mills following financially it collapsed due to mismanagement and corruption. Earlier, the textile and jute ministry submitted a comprehensive plan to the chief adviser seeking reforms in the sector against the backdrop of fund crunch and
mismanagement.
The mills now owe Tk 136 crore to jute sellers as the Finance Ministry was not giving them any funds and they were suffering from liquidity crisis for three years, said Ministry sources. Meanwhile, authorities sacked all the staff of state-owned People's Jute Mills in Khulna to close four mills under BJMC - People's Jute Mill, Karnaphuli Jute Mill and Furat Karnaphuli Carpet Factory in Chittagong and Qaumi Jute Mills in
Sirajganj. The Jute Ministry has already sought Tk 382 crore from the Finance Ministry to terminate around 9,000 workers and employees of these four mills through golden handshakes, said an official.
Source: Daily Ittefaq, Internet Edition. October 26, 2007
Workers assault jute mill officials for Eid bonus
Khulna, October 11, 2007: Security was beefed up in Khalishpur industrial area yesterday after workers of Platinum Jubilee Jute Mills
(PJJM) demanding Eid bonus and payment of dues assaulted its two officials. Members of Army and Rab were deployed in the area after angry workers of PJJM beat up its Administrative Officer Aftabuddin and Assistant Manager
Nasiruddin Nazu.
Agitating workers of PJJM and Crescent Jute Mills (CJM) yesterday demonstrated in the Khalishpur industrial area for Eid bonus and payment of dues. Meanwhile, a tense situation prevails at Eastern Jute Mills and Alaim Jute Mills in city's Atre industrial area where retrenched workers demonstrated demanding payment of dues.
Source: The Daily Star.
215 workers of Platinum Jute Mills laid off for a month
Khulna, September 26, 2007: A total of 215 permanent workers of Platinum Jubilee Jute Mills at Khalishpur industrial belt in Khulna were laid off for one month yesterday. Workers, who are serving for more than one year, however would enjoy lay off benefits, according to a notice
signed by Project Director Md Mohiuddin. Mohiuddin said chairman of Bangladesh Jute Mills Corporation ordered to lay off the workers as they were pressing the management for wages without work. The lay off notice can be withdrawn if workers join their duties properly, he said.
Source: The Daily Star
Alim Jute Mills laid off for 30 days over fund shortage
Khulna, September 24, 2007:
The state-owned Alim Jute Mills at Atra industrial area in Khulna was laid off for 30 days from
yesterday. Project Director of the mill Monowar Hossain said they had no fund to purchase raw jute to continue production.
He said the government did not allocate funds though they had applied for on several occasions before.
India, one of the main customers of jute products of the mill, has also expressed its unwillingness to buy them, the project director added.
More than 500 workers staged a sit-in in front of the mill gate protesting the lay off decision.
They demanded reopening of the mill and payment of their arrears and other financial benefits within next 72 hours.
Workers' Union President Abdus Salam said the BJMC is yet to pay nearly Tk 3 crore in arrears for 33 weeks to permanent workers and Tk 90 lakh for nine months to 96 employees.
The workers also demanded funds to buy raw jute to resume production.
Security forces were deployed on the mill premises to avoid untoward
situations. According to the project director, 812 permanent workers and 96 employees last July applied for quitting jobs under voluntary retirement scheme sensing lay off anytime.
Source: The Daily Star
Ignore WB suggestions, revive jute sector
September 17, 2007:
Speakers at a discussion yesterday urged the government to revive jute sector and not to pay any attention to suggestions of the World Bank (WB) in this regard. "The World Bank is advising the government to shut down jute mills in the country," Salahuddin Ahmed, a former chairman of the Bangladesh Jute Mills Corporation, told the discussion.
"When we are shutting down jute mills in our country, neighbouring India is increasing
investment in jute industry sensing the high demand for environment-friendly jute goods in the global market in near future," he further told the discussion on 'importance of jute as
eco- friendly agriculture and industrial product ', organised by Nagarik Sanghati, a
non- governmental organisation.
Transparency International Bangladesh Trustee Board Chairman Prof Muzaffer Ahmed said although jute-made products have high demand, there has been no major research to revive the sector in the country. “As some 3.5 crore people are involved with the jute sector, the government should undertake realistic action plans to save the sector,” Ahmed said. He also called for reviving the sector before 2009 since the UN has declared the year as 'International Natural Fibre Year'.
On September 13 at a function in Dhaka former agriculture minister Motia Chowdhury said the government destroyed the country's jute and sugar industries by implementing the World Bank and IMF suggestions. "The finance and industries advisers are hell-bent on closing down jute and sugar factories one after another at the diktats of the multilateral donor agencies,"
Motia, also Awami League (AL) leader, said. Finance Adviser Mirza Azizul Islam was also present at the function. Responding to the accusation, the finance adviser brushed aside the allegation, saying, "I swear in the name of God that neither the World Bank nor IMF even
uttered a single word to close down any mill."
The caretaker government recently closed down four state-run jute mills -- People's Jute Mills in Khulna, Karnaphuli Jute Mills and Forat-Karnaphuli Carpet Factory in Chittagong, and Kaomi Jute Mills in
Sirajganj. The government found the SoEs non-viable to run.
Source: The Daily Star: Internet Edition, Published On: 2007-09-16
Peoples Jute Mill shuts August 1, 2007
Khulna, July
30, 2007: State-owned Peoples Jute Mills, which went into commercial
operation in 1966, will blow the final whistle at 12 midnight on July 31, throwing over 3,500 workers and employees out of jobs. Earlier on July 13, the BJMC chairman issued official
orders directing the general manager of Peoples Jute Mills, which had become a losing
concern, to terminate all its workers and employees and ask them to vacate the mill quarters.
Meanwhile, 313 laid-off permanent workers of Crescent Jute Mills received termination
notice on Friday evening, and the number of terminated permanent workers of this mill now stands at 1,251. As many as 5,424 permanent workers have been terminated from seven of the eight state-owned jute mills in Khulna-Jessore industrial belt since the BJMC began
the move in June on grounds of severe financial crisis, power outages and loss of markets both at home and abroad.
Source: The Daily Star
Jute farmers getting no buyers despite bumper harvest
July 07, 2007:
Bumper harvest of raw jute coupled with India’s reluctance to import, is going to desecrate the farmers of Bangladesh once again.
The jute mills of the West Bengal recently cancelled import orders of as much as 2.5 lakh bales (1 bale=5 mounds) of raw jute from Bangladesh due to their prolonged labour strike and production suspension.
Bangladesh is carrying over at least 15 lakh bale of raw jute to which, some 60 lakh bale is likely to be added this year, according to the government’s harvest projection. The huge amount of raw jute will be a burden, and cause further jeopardy, if the government and private jute mills do not go for production and purchase of raw jute.
In the backdrop of surplus supply of raw jute and the lower demand from jute mills,
farmers will not be able to recover their production cost. The resultant fall in the price of raw jute will cause economic sufferings to the jute cultivators.
Currently, some 22 jute mills are in operation under the state-run Bangladesh Jute Mills Corporation (BJMC) while the private operators are running 77 jute units and 150
jute- spinning mills in the country. Except for the spinning units, most of the jute mills, especially those under the BJMC, are in bad shape.
However, the caretaker government has taken a fresh move to formulate a new jute policy for the revival of the ailing sector targeting enhancement of jute production capacity,
diversification of product base, ways to attract foreign investment and increase of export earnings.
Source: Daily Ittefaq : By Pulack Ghatack
Jute body official stresses on quality, higher productivity
Kolkata: May 8, 2007: AFM Sarwar
Kamal, the outgoing secretary general of International Jute study Group (IJSG),
highlighted a number of vital issues pertaining to jute agriculture at the
eighth session of the council of IJSG held at Dhaka on May 02-03.
He emphasised on adequate supply of certified seeds and improvement in
methods of cultivation to ensure quality and higher yield per hectare. The
supply of quality seeds is essential for production of premium-fetching jute
products benefiting the consumers, he said. He also stressed on creating
awareness about versatile properties of jute as natural fibre,
eco-friendliness and carrying out national programme on jute including
aggressive market promotion campaign.
To encourage the jute growers to increase production, Mr Kamal said the
governments of member countries of the group should ensure fair price to
growers. He felt that R&D activities for the development of new technologies
and products suitable to consumer requirement and preference should be
strengthened by the national governments of member countries. This would
make jute and jute goods more competitive in the global market.
Referring to successful transferring of upgraded technologies to the
producers and manufacturers in member countries, he pointed out that
appropriate actions are needed to be taken. In this context, he said
innovative and new diversified products should be manufactured to meet the
choice of consumers, adding that efforts should also be made to find out new
market opportunities. For accelerating growth in the jute sector, it is
essential for the private sector to be involved along with public sector. In
other words, there should be private-public partnership for overall
development in the jute sector, he said.
He continued that since its inception five years ago, IJSG has been
initiating and implementing many jute development projects with the help of
common fund community under the United Nations. The aim was to promote jute
in close cooperation, support and assistance of International community,
donor agencies and R&D institutions.
Mr Kamal said the IJSG secretariat has already received verbal assurance
and positive hints from a number of potential member countries like
Pakistan, Nepal, Myanmar, Nigeria and Egypt and expected that they might
become members of IJSG shortly.
A Bangladesh country paper on jute presented at the IJSG session
disclosed that the Bangladesh government has initiated a policy programme
for production of diversified jute goods by the private sector. The Jute
Diversified Promotion Centre (JDPC) had undertaken large-scale programme for
entrepreneurial development and skill training to create workforce that will
be involved in production of diversified jute products (DJPs).
It also said that the export sale proceeds recorded a three-fold rise
from Taka 43.3 crore in 2001-02 to Taka 131.5 crore in 2005-06, internal
consumption rose from Taka 8.3 crore to Taka 27.9 crore. But the figures do
not reflect the performance of the entire DJP sector, as a few entrepreneurs
did not send their performance figures.
Source: The Economic Times
Bangladesh develops high-yielding jute seeds
Bhubaneswar, 7 May, 2007:
Bangladesh has developed a new and unique variety of jute seed that will
double the current per acre yield of crop and act as model for other jute producing nations.
According to the latest country Paper on Bangladesh Jute, presented at
the Eighth council of International Jute study group (IJSG) in Dhaka, the
new seed variety has been named O-9897 and has the capacity to produce eight
bales of jute per acre instead of the present four bales from the local variety.
In Bangladesh, about 1.2 million acres of land are used for jute
cultivation with an average yield of 4.56 bales of jute per acre for the
last 5 years. Bangladesh currently requires 4000-4500 metric tonnes (MT) of jute seed annually.
The country paper also points out the present problems faced by
Bangladesh over the quality of jute seeds. The paper says, while the demand
for jute seeds stand at around 4500 MT, production is only 1000-1200 MT. Of
this the Government promoted Bangladesh Agriculture Development corporation
(BADC) supplies 600 MT of certified seed. The rest 400-600 MT is produced by
farmers. The remaining 300-3300 MT is imported.
IJSG also points out that the lack of skilled labour, inadequate R&D
facilities, high production costs as against competing countries like India,
China and Pakistan have added to the woes of Bangladesh jute industry. This
has resulted in a lower productivity, production of lower quality materials.
International jute body feels the necessity for a positive initiative at the
earliest to mitigate the jute seed problem. Alongside, the Bangladesh
government has decided to observe 2009 as the “international Year of Natural Fibre”.
According to IJSG standards, the Bangladesh Jute Mills Corporation (BJMC)
is producing traditional products including appropriate and quality jute
cement bags, food grade jute bags, rot proof jute fabric, jute polished
yarns and diversified jute items to fight the threat of synthetics.
To replace polythene bags, BJMC, for the first time has developed ‘Jute
Nursery Pots’ of various sizes for using in nursery applications. To
increase the yield per acre of raw jute, the Department of Jute is
implementing a project named ‘High-yielding variety of jute and jute seeds production’.
Bangladesh currently had 150 composite and twine jute mills in the
private and public sector and produces 5.5 million bales of raw jute, which
is approximately 30 per cent of global production. Of this 2-2.5 million
bales are exported and the rest internally consumed.
Moreover, a National Jute College is also being conceptualised for the
first time by the Bangladesh Ministry of Textiles and Jute. Students from
other jute producing nations could also get admitted to the college and
education there would primarily be restricted to jute and jute goods
including technologies and research. The Department of Jute has also set up
an information cell to provide data on sowing, production, internal consumption and storage.
Source: Business Standard
Eighth Session of
the Council of the IJSG held in Dhaka on 2-3 May 2007
The two daylong session of the Council of
the International Jute Study Group (ILSG) will be held in Dhaka during 2-3
May 2007. All members of IJSG –Bangladesh, India, Switzerland and European
Community (EC) will be attending the session. The Council will discuss
important issues like world jute situation, jute market development and related matters.
Source: International Jute study group
Bangladesh shuts down 4 loss-making jute mills
Dhaka, April 23, 2007: More than 100 people
were injured in clashes in southern Bangladesh triggered by the closure of
four state-run jute mills affecting thousands of workers, police said yesterday.
The lay-offs at the loss-making jute mills in the Khulna industrial
district were announced on Friday triggering the violence which continued
until Saturday, a police officer said. The workers, joined by college
students, threw stones at police trying to restore order in Khulna, 300
kilometres southwest from the capital Dhaka.
“There is still tension in the area,” the officer said. The four mills
employed 22,000 workers and had incurred a combined business loss of 450m
taka ($6.52m). Jute is one of Bangladesh’s main exports, fetching around
$500m annually. The losses were mainly due to lack of adequate power supply
to the mills.
Source: Agencies |
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