Home / Knowledge / News / Textiles / Finance Minister gung-ho on jute sector
Finance Minister gung-ho on jute sector
13
Jun '11
Finance Minister AMA Muhith, in his budget speech, revealed that the Government has already resolved to take-over all the liabilities and obligations of the Bangladesh Jute Mills Corporation (BJMC), which comes to around Tk 23.96 billion.

Mr. Muhith further revealed that the BJMC has taken up a business plan aimed at revival of the jute industry and that the Government has decided to transform BJMC into a holding company.

The Government had earlier proposed to provide Tk 11.7 billion to help the state-run jute mills to overcome losses and make the sector more rewarding. Of the proposed sum of Tk 11.7 billion, Tk 2 billion have been allocated to help BJMC to procure raw jute and Tk 5 billion to support its refinancing.

Besides, another Tk 1.05 billion have been allocated to restart production activities at Kawmi Jute Mill and People's Jute Mill which were closed down earlier. The mills would be restarted under Public Private Partnership mode under a new name.

The remaining balance of Tk 3.6483 would be utilized to clear the dues of jute, power, gas, wages, jute storage, and towards providing financial assistance to retired employees. BJMC presently operates 20 mills, four of which have been newly opened over the last two years.

The Minister stated that the Government has decided to clear all the outstanding dues of the Corporation of up to June 2010, as it is quite enthused by the popularity that the jute goods have gained on home front as well as abroad.

The Government's move of passing a law making jute packaging mandatory for goods like cement, sugar, fertilizer and grains, has greatly raised the prospects of jute products in the country.

The law has already become effective with the Ministry of Textiles and Jute directing the public sector agencies to make use of jute for packing foods, seeds and fertilizers, in place of polythene bags.

During July-April in the current fiscal year, the jute industry generated revenues worth US$ 924 million, which is reflective of a year-on-year rise of 42 percent.

The Minister hoped that BJMC would be able to shed its past losses and turn into a profit-making organization, regaining its lost glory.

Further, while talking about successful decoding of jute genome, he said that “the important discovery has unlocked a new opportunity for carrying out further experiments on new jute varieties that will be yielding high productivity, will be salinity-resistant, and will be even able to withstand insects, drought and diseases.”

Fibre2fashion News Desk - India

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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