Home / Knowledge / News / Textiles / Jute sector burdened by credit crunch
Jute sector burdened by credit crunch
02
Sep '09
The jute sector which was able to export jute and jute products valued at US $283 million in the previous fiscal year, is going through a severe credit crunch, right in the middle of the season when jute crops arrive in the market.

The Chairman of Bangladesh Jute Mills Association (BJMA), Mr Huq said that, “Peak season is getting over, but the government is sluggish in responding to our needs to restructure our loans and increase working capital limits”.

He added by saying that if the raw jute was not purchased now, the prices would go up by end-September, which would then reduce the competitiveness of the jute industry, vis-à-vis, neighbouring countries like India.

He said, the jute sector has faced huge losses since the last one year as demand for jute fell by 30 percent and prices by 40 percent, but demand has been slowly on the rise since March, though prices have not kept pace with the rising demand.

The representatives of the jute associations had earlier met the Jute and Textile Minister, Mr Abdul Latif Siddique and put forth the same demand and who in turn had also written to the Finance Ministry to increase credit facilities to the sector.

Industry experts decry the fact that the loss making state-owned BJMC jute mills, which has been incurring heavy losses continuously due to inefficiency, since the last few years received Tk 300 crore to buy raw jute in the current year.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search