Wednesday, August 5, 2020 | ePaper

BD lost Tk 40b export earnings for BJMC: Minister

  • Print
bdnews24.com :
Textiles and Jute Minister Golam Dastagir Gazi has blamed the Bangladesh Jute Mills Corporation (BJMC) for the current malaise in the flagging jute sector.
He blamed the organisation for costing the country Tk 40 billion in lost export earnings from India due to its anti-dumping duty on Bangladeshi jute products.
His comments came on Friday a day after the government announced plans to shut production at the 26 state-owned jute mills in the country.
BJMC Chairman Abdur Rouf was sitting next to Gazi while he delivered his scathing assessment of the organisation.
Government subsidies have driven down the prices of jute products below their cost of production, which prompted India to impose the punitive tariffs, according to Gazi.
 "Items that cost Tk 100 to produce are sold for Tk 70 in the country. India has imposed anti-dumping duty on our products as a result. The 30 taka loss is covered by government funds and it is damaging our local industry," he said in a media briefing on Friday.
"We've lost Tk 40 billion from our exports to India only because of BJMC." The minister also poured scorn on the BJMC for the precarious state of the jute industry.
He pointed out that the wages in state-run mills are three times higher than the private ones, questioning the sustainability of the business in the process.
"Those who are running mills privately are taking out loans from private banks and this is helping them survive in the world market. All we've done is hand out more and more subsidies. But the losses have kept piling up."
Earlier on Thursday, the government announced that it will shut down production at all state-owned jute mills after making full payments to workers amid protests.
The shutdown will send about 25,000 workers at 26 jute mills into early retirement under a scheme, euphemistically called golden handshake. While some private jute mills are turning profits, the 26 jute mills under the Bangladesh Jute Mills Corporation have been incurring losses for years, which many have blamed on mismanagement, irregularities and corruption.
The state-owned mills incurred a cumulative loss of Tk 106.74 billion, according to official data.
According to Textiles and Jute Secretary Lokman Hossain, the state-owned jute mills yielded profits in just four of the last 44 years. The government provided subsidies worth Tk 106.74 billion in this sector over the last 48 years.
Mills relied on the government to bear the operating expenses, including the wages of the workers.

More News For this Category

Mamoon Mahmood Shah, Managing Director & CEO (Current Charge) of NRB Bank Limited, cutting cake to celebrate the bank's 7th Anniversary with the slogan 'Marching Towards Success & Sustainability' at its Corporate Head Office in the capital on Tuesday. Md Khurshed Alam, Deputy Managing Director, was also present.

Mamoon Mahmood Shah, Managing Director & CEO (Current Charge) of NRB Bank Limited, cutting cake to celebrate the bank's 7th Anniversary with the slogan 'Marching Towards Success & Sustainability' at its Corporate Head Office in the capital on Tuesday. Md Khurshed Alam, Deputy Managing Director, was also present.

Govt eyes global market for jute goods

Economic Reporter :The government is working to diversify the use of jute and boost its production by taking effective steps to reform the sector eyeing global market, said Textiles and

ADB's COVID-19 response reaches $9.3b in last six months

Economic Reporter :The Asian Development Bank (ADB) committed $9.3 billion in financial resources in the last six months since early February when ADB started its initial response to support its

Export earning notches 0.59pc growth in July

Economic Reporter :The country's export earnings witnessed a 0.59 percent growth in July this year compared to July 2019 despite the impacts of the novel coronavirus (COVID-19) pandemic.According to a

Japan hopes to continue work to develop economic tie with BD

Economic Reporter :The Ambassador of Japan to Bangladesh Ito Naoki hoped to continue work closely for developing economic partnership between Japan and Bangladesh which will encourage more Japanese investment in

Bourses sustain gaining steak

Economic Reporter :Stocks on Tuesday sustained the gaining streak for the eighth consecutive sessions as investors continued their buying binge on selective large-cap issues after unveiling an expansionary monetary policy.DSEX,

Ispahani Group sponsored 10 oxygen Cylinders and N95 masks for the Rangunia Health Complex in Chattogram. Dr Hasan Mahmud, Information Minister, Omar Hannan, General Manager (Marketing) and Shah Moinuddin Hasan, General Manager (Tea Trade) of Ispahani Group, among others, were present.

Ispahani Group sponsored 10 oxygen Cylinders and N95 masks for the Rangunia Health Complex in Chattogram. Dr Hasan Mahmud, Information Minister, Omar Hannan, General Manager (Marketing) and Shah Moinuddin Hasan, General Manager (Tea Trade) of Ispahani Group, among others, were present.

BEZA, Yabang Group ink land lease agreement

BEZA, Yabang Group ink land lease agreement

Economic Reporter :Bangladesh Economic Zones Authority (BEZA) on Tuesday inked a land lease agreement with Jiangsu Yabang Dyestuff, China, a concern of the Yabang Investment Holdings Group Co Limited, at

MICL recommended 7pc cash dividend

Business Desk :Mercantile Insurance Company Ltd (MICL) organized its 188th Board of Directors meeting virtually by using digital platform recently. The meeting was presided over by M Kamal Uddin, Chairman

Asian markets track Wall St surge, focus turns to Capitol Hill

AFP, Hong Kong :Asian stocks advanced Tuesday following another record close on Wall Street, with investors cheered by forecast-beating US data and hopes for fresh stimulus for the world's top