The government is planning to form a Jute Council aimed at developing the jute industry and addressing its challenges, said Textile and Jute Minister Jahangir Kabir Nanak.
“A Jute Council will be formed to develop the jute industry and solve its problems. There are a lot of problems in the jute industry. If a Jute Council is formed, it will be easier to develop an integrated roadmap for the development of the jute industry," he said today at the 40th annual general meeting of the Bangladesh Jute Mills Association (BJMA) in the capital.
Highlighting the challenges faced by the sector, Minister Nanak pointed out, "After taking over as Minister, I have noticed several problems in this sector. For example, only one-third of the jute seeds are produced domestically. The remaining two-thirds have to be imported, which is regrettable."
He also disclosed an organisational misalignment affecting research efforts, saying, "I found out that the Jute Research Center is not under the Ministry of Jute but under the Ministry of Agriculture."
The event was chaired by BJMA Chairman Md Abul Hossain, and attended by Kazi Nabil Ahmed, and Shamim Kaiser, vice president of FBCCI, along with former and newly elected board directors and entrepreneurs involved in the jute and jute products industry.
"Today, members of the BJMA have called for a ban on 50 kg rice bags made from polythene or plastic, a proposal I fully support," said the minister.
"However, our approach should not solely rely on governmental force; instead, we must offer viable alternatives to consumers. Our commitment extends beyond just the 50 kg bags, as we plan to address all forms of polythene and plastic use," he added.
In addition to environmental measures, Nanak conveyed his role as a liaison to the Prime Minister, reiterating the national leadership’s dedication to enhancing the jute sector.
"The Prime Minister has assured that everything necessary will be done for the development of the jute industry and has given it the highest priority," he said.
During the meeting, various issues affecting the jute industry were presented to the minister by the BJMA board members.
Nanak assured them that proactive measures are being taken, including financial incentives for jute product exporters and alleviating financial pressures on producers.
"I have instructed the secretary of the Ministry of Finance and Financial Institutions Division to send a list of 282 diverse jute products to Bangladesh Bank. This will facilitate a 20% cash assistance for exporters," he explained.
Additionally, he has mandated a two-year moratorium on the outstanding loans of the jute industry, allowing for repayment over ten years with a reduced down payment requirement.
The Textile and Jute Minister said, "I have instructed the secretary of the Ministry of Finance and Financial Institutions Division to send a list of 282 diverse jute products from the Ministry of Finance to Bangladesh Bank. This will facilitate the exporters to receive 20% cash assistance for the export of diverse jute products.
“Regarding the outstanding loans of the jute industry, I have directed a moratorium of 2 years for the update of the block account including principal and interest, and the repayment in 10 years with a 1% down payment instead of 2%."
Furthermore, the minister mentioned the abolition of the 2% source tax on raw jute, the removal of anti-dumping duty on the export of jute products by neighbouring countries, the creation of a Tk10,000 crore jute sector development fund in local currency for the purchase of raw materials for the jute industry, the declaration of jute and jute products as agricultural products by the prime minister, and the government's efforts to provide at least 30% cash assistance for the transfer of old machinery in jute mills.
Highlighting the importance of increasing the sales of jute products in domestic and foreign markets, the minister said, "To increase the sales of jute products in the domestic market, we are trying to implement the 'Mandatory Use of Jute Packaging Law-2010' completely.”
“To increase sales in foreign markets, we have sent letters to the embassies of Bangladesh abroad. We are making efforts to ensure that Bangladeshi delegations of traders of jute and diverse jute products can easily participate in various fairs and markets abroad, and we are taking measures to improve the design, colouring, and design of jute products for quality enhancement. We are continuously striving to provide opportunities and benefits to the jute industry sector similar to the garment industry and to improve it accordingly," he added.
