The jute sector in the country has been in a state of entropy as described in physics. A state where there is permanent order or disorder, and the latter reigns supreme in case of Bangladesh.
With order books bulging mainly from Europe and North America, the country's jute sector should have been smiling and shinning.
Alas, the state of the industry in general is neither here nor there.
Recently, some eight Khulna jute mills that were 'sick' were reopened to satisfy the orders booked, so far. Buyers are eager on getting jute goods and carpet backing, however to their dismay, the working mills and factories both in public and private sectors are still not geared to cater to these orders.
It is said that even if all the mills stretch beyond capacities, they would unable to clear backlogs.
This despite closed mills being restarted and running at a huge loss!
On one hand Government invests money in restarting the closed mills and on the other mill workers are required to be paid their cash incentives to the tune of Tk 3.0 billion to ensure the mills run smoothly.
In dire straits, the government is faced with no alternatives but to dole out incentives in order to produce the required quantity of jute goods.
Bangladesh Jute Mills Corporation (BJMC), on the other hand, is buying jute at a higher price (this year, jute sells in the market at a higher price).
Thus, government is being drained off valuable finance that could help exploit the industry of the sector to its maximum.
marketing@alchempro.com
