Bangladesh jute spinners forced to cut production due to turmoil

The political turmoil in Bangladesh has hit jute export trade and income of the country’s 96 private jute spinners. Overall export earnings and activities of the factories have been hampered because of blockade coupled with hartals enforced by BNP-led 20-party alliance, the Bangladesh Jute Spinners association said.

During the blockade, a large number of labourers of the jute mills were unable to attend their workplaces. As a result, production at the factories decreased and the millers incurred massive losses. Many yarn factories are forced cut their production by 20-25 per cent during the period.

Jute spinners have sought bank interest waiver from the government for two quarters to June of the current calendar year as they have sustained losses as a result of the political turmoil.

Transportation cost was double that of the normal time and shipment of raw jute faced serious setback with export decreasing significantly.

Besides, the spinners have been facing liquidity crisis in operating their business smoothly. For this, the government should stand beside the private jute spinners to help them to cope up with their fund crisis and losses, the association added.

According to the chairman of BJSA Ahmed Hossain, the prevailing situation is changing at a slow pace. Prices of jute in the country are increasing; but exporters of the items do not raise prices proportionate with the production cost.

Presently, some 7.5 per cent cash incentive is provided on export of jute yarns. incentive or subsidy from the government for different sectors should be increased.