Businessmen in Bangladesh recently called for forming a Jute Sector Development Fund on the lines of the Export Development Fund (EDF) to facilitate entrepreneurs with a loan at 2 per cent interest. The suggestion came at the first meeting of the standing committee on jute and jute goods of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI).

The businessmen feel the low-cost fund is now the only way to revive the country's jute sector.

The meeting also demanded the withdrawal of 2 per cent source tax on raw jute purchase and 10 per cent on export incentives imposed in the budget, government initiative for permanent withdrawal of India's anti-dumping duty on jute products, bank loans waiver of private jute mills and initiatives to produce high yielding jute seeds, according to Bangladeshi media reports.

Director-in-charge of the committee Mohammad Mahbubur Rahman Patwari said the sector adds up to 200 per cent value through both industrial and agricultural products.

President of Bangladesh Jute Mills Association and chairman of the committee Mohammad Abul Hossain said mill owners are suffering from a capital crisis due to high bank interest rates, high production costs with comparatively lower selling prices of the goods. Therefore, low-cost financing will act as a life saviour in this sector, he added.

Fibre2Fashion News Desk (DS)

Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.