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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 time 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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Seventh Session
of the Council of the International Jute Study Group (IJSG)
The two-day Seventh Session of the
Council of the International Jute Study Group (IJSG) held at its Secretariat
in Dhaka ended on 25 April 2006. A series of important issues including
membership of the Group, development of market for jute products, assessment
of world jute situation and other related matters to formulate appropriate
strategies for the growth of the world jute sector were discussed during the
Session. The Council stressed upon the need for continuous and determined
efforts by the present Members to take diplomatic initiatives to persuade
potential member countries to become Members of the Group to strengthen its
activities. The Council focused on the interest and participation of the
private sectors and underscored the need to make Private Sector Consultative
Board (PSCB) more effective and a vibrant Body by increasing the number of
Associate Members which can contribute to the improvement of the jute
economy. It was decided that IJSG should continue its awareness programmes
and other promotional activities, producing more publicity materials
including video films on jute, kenaf and allied fibres, keeping informed the
concerned people through statistical analysis of the world jute situation
and updating the website (www.jute.org) regularly. Along with all Members of
IJSG - Bangladesh, India, Switzerland, and European Community (EC),
representing its 25 Member States, the Associate Members and Observers from
China, Morocco, Myanmar, Nepal, the Philippines and the Russian Federation
attended the Session.
The Council unanimously elected Hans Peter Fitze (Switzerland)
and S.Majumdar (India) as the Chairman and Vice Chairman of IJSG Council
respectively for the year 2006/2007.
Fifth Meeting of the PSCB of
the IJSG held in Kolkata.
The Fifth Meeting of the
Private Sector Consultative Board (PSCB) of the International Jute
Study Group (IJSG) was held on 8 March, 2006 at the conference room of
Bengal Chamber of Commerce, Kolkata. Mr. Muhammad Shams-ul-Haque, Chairman
of the PSCB opened and chaired the meeting. Mr. A F M Sarwar Kamal,
Secretary General of the IJSG was present in the meeting. Mr. Sanjay
Kazaria Vice-Chairman of the PSCB and Mr. Humayan Mazhar, Chairman,
Pakistan Jute Mills Association (PJMA) and representatives of
various jute related Associations and Jute Mills of Bangladesh, India,
Pakistan and Nepal were also present. The meeting discussed various
issues like standards of jute & jute products, cooperation among the
buyers and sellers, disposal problem of jute products, tariff and
non-tariff barriers, improvement of jute processing machinery,
necessity for trained manpower etc.
Mr. Sarwar Kamal in his statement remarked that PSCB is the direct
linkage between the IJSG and the Private Sector and it provides a
forum to discuss various problems faced by the jute sector. He hoped that
the delegates would come up with constructive suggestions for the overall
growth of the jute economy and make the PSCB more effective. The Chairman of
the PSCB in his speech highlighted some basic problems like shortage of
seeds and availability of high quality fibre. He also expressed the
necessity for trained manpower and training institutes.
Mr. Sanjay Kazaria, (India) was elected Chairman and Mr. Humayan
Mazhar, (Pakistan), Mr. Danis Kalomini (Switzerland) and Mr. Faizur Rahman
(Bangladesh) were elected Vice Chairmen of the PSCB for the jute year
2006-2007. It may be mentioned that at present PSCB has 43 members
representing Bangladesh, India, Pakistan, Cote d’Ivoire, Switzerland, USA
and Nepal. Meanwhile, the third meeting of the Ad hoc Technical Committee
for implementation of IJO Standard 98/01 for Food Grade Jute Bags was
held at the conference room of the Indian Jute Mills Association,
Kolkata under the Chairmanship of Mr. Sanjay Kajaria.
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