Privatisation revived jute industry: Minister 

The country's jute industry has witnessed a revitalisation as privately-run jute mills began production and exports of jute products, said Textiles and Jute Minister Golam Dastagir Gazi (Birpratik).

The Bangladesh Jute Mills Corporation (BJMC) has so far leased out five state-owned jute mills to five private firms, while 20 more mills are awaiting privatisation.

The privatisation move has created fresh employment opportunities as some mills have already started production, the minister said while inspecting the production line of KFD Jute Mills Limited in Chattogram on Tuesday afternoon.

In February this year, the Unitex Group obtained the lease of KFD Jute Mills for 20 years. KFD Jute Mills has three units – Karnafuli Jute Mills, Furat Karnafuli Carpet Factory, and Diversified Decorative Fabrics.

The factory went into production on 28 February and already started exporting its jute products.

Md Nazrul Islam Chowdhury, member of the Parliamentary Standing Committee on the Ministry of Textiles and Jute, and Md Abdur Rauf, secretary of Textiles and Jute, among others accompanied the minister during the visit.

Golam Dastagir Gazi said, "The KFD Jute Mills is currently producing an average of 10 tonnes of jute goods daily with 400 workers. So far, 130 tonnes of jute products have been exported to Vietnam, Tunisia and China. Besides, about 600 tonnes of goods are awaiting export."

"The Unitex Jute Industries is going to launch two more manufacturing units through modernisation. It will be possible to produce an average of 100 tonnes of conventional and versatile jute products combined. Hopefully, some 3,500 new jobs will be created here," he said.

Bangladesh Jute Mills Limited in Narsingdi has been leased out and already started production under private management, the minister said, adding that the process to lease the Crescent Jute Mills in Khulna and Hafiz Jute Mills in Chattogram is underway.

Secretary of Textiles and Jute Md Abdur Rauf said, "We have issued Expression of Interest (EOI) circulars for 18 jute mills. Only 5 firms have fulfilled all the terms and conditions."

For the remaining 13 jute mills, 53 proposals have been received from 16 national and international firms through the issuance of a second EOI notification, the secretary said.

"The proposals are being scrutinised and we are hoping to lease a few more mills at this stage," he added.

Mohammad Arif, the chief financing officer of Unitex Group, said, "The daily production of this mill was 2-5 tonnes before it was shut down. Currently, it is producing 10 tonnes of jute goods per day. Our target is to increase production capacity to 100 tonnes."

"Separate units will be set up for production of various jute products. Initially, we have invested Tk500 crore and Tk3,000 crore will be invested in phases. We believe the golden days of jute will return," he added.

State-owned jute mills, which have been mired in losses and debts for decades due to graft, inefficiency, lax management and monitoring, low productivity, and outdated machinery, will be revived under private management, industry stakeholders said.

The government closed 25 state-run jute mills under Bangladesh Jute Mills Corporation (BJMC) in 2020 by paying off dues to some 25,000 workers.