Home / Knowledge / News / Textiles / Jute Ministry seeks more credit for sector
Jute Ministry seeks more credit for sector
18
Aug '09
The Jute Ministry has requested the Finance Ministry to revamp the distressed jute sector, by pumping more money into the industry, considering that demand for jute products is on the rise.

According to a letter written by the Jute Minister, Mr Siddique to the Finance Ministry, he has stated that adequate financing is crucial for the sector, for it to purchase raw jute of good quality at low prices in the peak season.

He has requested the Finance Minister to intervene and issue bonds or guarantee to keep previous loans with five-year interests in the block account and give moratorium for a period of 2.5 years with a facility to repay in 20 years.

He has pointed out that over 30 million people are directly or indirectly involved in the jute trade so it was necessary to provide relief to a sector which provides employment to so many people.

Quoting statistics, he said, export earnings from jute products dropped to US $283.29 million in fiscal 2008-09 from $318.34 million the previous year and which stood at around $320.78 million in 2006-07.

He added by saying that since jute was considered an environmentally friendly product, demand was increasing and in order to sustain competition from other countries, the sector must be in a healthy condition.

In the last few years, jute mills in the private and public sector have accumulated debts totaling to Tk 5,500 crore and out of the 24 mills under the management of Bangladesh Jute Mills Corporation, 3 have been shut down and 6 have been leased out.

Of the 90 mills under Bangladesh Jute Mills Association (BJMA), seven major mills faced closure and four have laid-off their workers because of liquidity crisis. He said that adequate financing was needed to set these mills in order.

Experts say that orders have increased despite the financial crisis, but the jute mills were not in a position to complete them, due to a lack of credit which was leading to a vicious circle.

Fibre2fashion News Desk - India


Must ReadView All

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search