In a bid to revive the jute sector in the country, the government has decided to hand over 20 out of total 25 jute industries to the privet sector.
According to Bangladesh Jute Mills Corporation (BJMC), 14 mills have already been leased to different privet companies while discussions are on with investors for the remaining six jute mills.
As part of the initiative to restore profitability to loss-making jute mills, a total of six mills, with three located in Khulna, have been successfully returned to production.
The government has facilitated this process by releasing these mills to the private sector through a 30-year lease agreement, aiming to ensure the profitability of jute product manufacturing.
As part of the decision to gradually open 20 state-owned jute mills, commercial production officially started in six including three jute mills in Khulna on Thursday.
The six jute mills are Bangladesh Jute Mills at Ghorashal in Palash Upazila of Narsingdi, KFD at Rangunia in Chattogram, Jatio Jute Mills at Raipur in Sirajganj, Jashore Jute Industries at Rajghat, Daulatpur Jute Mills in Khulna and Carpeting Jute Mills Limited at Rajghat in Jashore.
Trial production started at Daulatpur Jute Mill from last December, and at Jashore Jute Industry and Carpeting Jute Mill from January. At present, about 64 tonnes of jute and jute products are being produced daily.
Apart from these three, five more jute mills in the region are in the
process of reopening. Among these, trial production has started at the Eastern Jute Mill. Khalishpur Jute Mill awaiting handover. Crescent Jute Mill is awaiting an agreement with Dhaka Socks after the tender process. And Star and Platinum Jute Mills are in the tender process.
According to Bangladesh Jute Mills Corporation (BJMC), out of 20 government jute mills under them, 14 have been leased. Discussions are going on with investors for the remaining six jute mills.
The Daulatpur Jute Mill in Khulna was re-launched last year under the private management of Fortune Group. Fortune group’s concern Uniworld Footwear Technology Limited had started experimental production at this jute mill in December. The mill has already sold 28,000 bags of jute bags to exporters worth Tk 25 lakh. At present, about 200 workers are working in the jute mill.
Uniworld Foot Wear Technology Ltd. General Manager Md. Ishaq Ali has said that the authorities are replacing the old equipment with new equipment to increase production. When fully operational, around 5,000 workers will be employed here.
However, spare parts of old machines are not available in the country or abroad. They are being collected from different countries like India, Japan, China to make the machines operational, officials said.
The Bangladesh Jute Mill at Ghorashal has been leased to the privately owned Jute Alliance company. When asked, Jute Alliance Chief Operating Officer (CSO) Al Qazi said that they will produce 20 types of versatile jute products. These include high demand laminated hessian also. All products manufactured here are export oriented.
BJMA Secretary General Abdul Barek Khan said, if new jute mills are introduced, a positive competitive environment will be created among the jute mills. This will benefit the jute sector.
In July 2020, all 27 state-owned jute mills were shut down due to continuous losses. Two jute mills closed earlier. Before the closure, 25 jute mills had 26,000 workers. Tk 3,510 crore has been paid in cash and through savings certificates as the dues of 34,757 permanent workers.