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Starved of capital, Afil Jute Mill resorts to layoff
01 May '10
2 min read
Exorbitant rise in the prices of raw jute coupled with acute power outages and financial crisis have compelled Afil Jute Mill to go for layoff for a month's duration.
Baig Abdur Razzak, Director of the Mill stated that layoff compensation will soon be paid to 1,600 workers and employees of the mill, and that they will put in all their efforts to resume production as soon as possible.
Manager (Administration), Md Ali Asgar said that as the mill was unable to pay back the loans it owed to Janata Bank, and was thus required to surrender its export licence.
This situation has also come about as there has been a sharp fall in the sales of the jute products on account of which, they have sustained heavy losses.
He also divulged that, Janata Bank has denied releasing any further funds till the previous dues are fully reimbursed. At this point of time, in order to rejuvenate the mill's operations, they require finance as also the export permit, he said
The now privately owned mill was denationalized in the year 1982. The jute mill administered by five directors and two delegates of the Bangladesh Jute Mills Corporation has been sagging since 2004.
During last week, the mills production experienced a sharp fall and came down to eight tonnes as against a average of 22 tonnes, he said and continued that they needed around Tk 40 lakh per month to shell out against salaries.
Baig Abdur Razzak, Director of the Mill stated that layoff compensation will soon be paid to 1,600 workers and employees of the mill, and that they will put in all their efforts to resume production as soon as possible.
Manager (Administration), Md Ali Asgar said that as the mill was unable to pay back the loans it owed to Janata Bank, and was thus required to surrender its export licence.
This situation has also come about as there has been a sharp fall in the sales of the jute products on account of which, they have sustained heavy losses.
He also divulged that, Janata Bank has denied releasing any further funds till the previous dues are fully reimbursed. At this point of time, in order to rejuvenate the mill's operations, they require finance as also the export permit, he said
The now privately owned mill was denationalized in the year 1982. The jute mill administered by five directors and two delegates of the Bangladesh Jute Mills Corporation has been sagging since 2004.
During last week, the mills production experienced a sharp fall and came down to eight tonnes as against a average of 22 tonnes, he said and continued that they needed around Tk 40 lakh per month to shell out against salaries.
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