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Biggest jute producing centre left holding stick
Mar '09
Khulna district in Bangladesh is famous for its jute manufacturing industry and is one of the biggest jute producing centre in the country. But years of government apathy, has wrecked havoc with this industry in the district and reduced it a diminutive size of the original.

The world's largest Jute Mill was the Adamjee Jute Mills at Narayanganj in Khalispure near Khulna city, which now stands closed since June 2002. The state owned Bangladesh Jute Mill Corporation (BJMC) also ran around 22 jute mills, of which many have closed down.

But now it is a different kind of crisis that the sector is facing in Khulna. Some call it economic meltdown; others prefer to call it recessionary trends. But the jute mills in Khulna have been left holding the stick, with another phase of closures, rendering more unemployment in the sector.

According to experts more than 500,000 bales are lying unsold in the warehouses due to the slowdown. Prices of raw jute as well as finished products have tumbled in the last few months; which has inflicted huge losses on the sector, which was already a spent force in Khulna.

Experts also say that, when neighbouring countries like Nepal and India are doing well, despite the fact that they are importing raw jute form India, the jute mills in Khulna and Bangladesh as a whole are facing troubled times, which is leading to more and more closures.

Production of raw jute in the first seven months of the current fiscal (July '08-January '09) plummeted to only 883,000 bales, worth Tk4.70 billion compared to 1.7 million bales amounting to Tk5.73 billion in the same period of the previous fiscal, which is a huge drop.

Fibre2fashion News Desk - India

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