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Profits fail to recuperate UMC Jute Mill

03
Feb '07
Although UMC Jute Mills is selling at price double than the production cost, mill is operating in loss.

UMC Jute Mills was nationalized after independence and was funded by Bangladesh Jute Mills Corporation.

According to sources, average production cost of Hessian, gunny bags and sacks is Tk 25,000 per ton and they are sold at sales price of Tk 45,000 per ton.

Products are highly demanded in countries like China, Russia, Korea, Japan, Italy etc.

Even after earning huge profits, company has not paid wages for the last five weeks and salary to employees for three months.

This situation is prevailing because of surplus labour force, corruption among officials and CBA leaders and dismissal of others' view by Jute Mills Corporation.

Company has production capacity of 90 tons of jute commodities per day. But it is operating at half of its capacity as 500 looms are idle.

Company has more than 6,000 workers and 500 employees and pays per month wages of Tk 22 million and salaries of Tk 3.8 million, respectively.

Last financial year, mill suffered a loss of Tk 140 million and Tk 250 million in 2004-2005.


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