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: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Eamonn Tighe
Nature Works LLC

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search