The Bangladesh Bank’s recent circular for payment of cash subsidty on diversified jute products states that enterprises which will be able to get a certification from the Bangladesh Jute Mills Association (BJMA) and the Bangladesh Jute Spinners Association (BJSA), will receive the 10 percent cash benefit.

According to the latest criteria little benefit would be yield as many exporters would not be able to maintain such conditions, so the government's cash benefit is only being grabbed by the big jute goods producers who own mills, said diversified jute goods producers, said sector insiders.

The entrepreneurs, who do not own jute mills, will not get such a certificate. So they will not get the benefit, said Rashedul Karim Munna, convener of the Bangladesh Diversified Jute Products Manufacturers and Exporters Association (BDJPMEA).

He said that although the initiative is good for the jute sector, more than 200 small and medium enterprises will not be benefitted from this move. Small entrepreneurs are struggling hard so they need more such types of cash incentives, the BDJPMEA convener said.

The central bank circular also said that the jute manufacturers have to use minimum 75 percent of jute for their exportable products to be eligible for subsidy.

According to the circular, the cash subsidy will be given on all diversified jute goods export but hessian, sacking, Carpet Backing Cloth (CBC) and jute yarn.

However, some 145 units are operating under the BJMA while 97 under the BJSA. But most of these mills are not producing diversified products.