Indian firms among companies investing in closed jute mills

Indian companies are investing in two closed jute mills to restart their production activities and a Taiwanese firm has also expressed interest in investing in another one under a government initiative to revive the sector, said Md Abdur Rouf, secretary of the Ministry of Textiles and Jute, on Tuesday.

Many of the country's jute mills incurred losses under government ownership and faced closures. The government is now looking to lease them out to private investors to make them profitable again, said Md Abdur Rouf at an event in the capital.

At the event, Textiles and Jute Minister Jahangir Kabir Nanak said the initiative aims to diversify the country's exports. Officials from the Bangladesh Textile Mills Corporation were also present at the event.

Out of the twenty-five closed jute mills, seventeen have been leased out to local and foreign private companies and five of these have already restarted production and exports, Abdur Rouf added.

The investors would rebuild production lines in the factories and abandon old equipment. Jute Mills Corporation sources claim the two Indian companies – Pacific Jute and Mohan Jute – would invest in their respective leased jute factories in partnership with local entrepreneurs. A Taiwan company has also expressed interest in leasing a jute mill.

New project for Sonali bags

Md Abdur Rouf said the government has taken a pilot project to prove the profitability of Sonali bag production to the private sector. Sonali bag – a recyclable bag made from jute cellulose – holds huge promises for the jute industry.

The ministry officials first tried to get feedback from businessmen on using the specialised machine for Sonali bag production. But it turned out that the private sector could only be convinced of its commercial viability by producing it at scale. So, the government has procured a number of the machines for proving Sonali bag's profitability in large-scale production.

Jahangir Kabir Nanak said that as part of the move to diversify Bangladesh's export portfolio, efforts are being made to increase the export of a variety of jute products.

Prime Minister Sheikh Hasina recently directed the government to provide incentives to the leather and jute industries similar to the benefits offered to the readymade garments sector.

This directive aims to boost export earnings from locally sourced raw materials and diminish the economy's dependence on garment exports.

Nanak expressed his determination to revive the golden age of the jute industry, saying, "We are working on the instructions given by Prime Minister Sheikh Hasina. We will try to overcome the challenges and find a way to develop this sector, God willing."

Highlighting the efforts in addressing the industry's problems, he said, "We will meet with farmers and field-level officials. The jute industry is a matter of pride for the nation."

In the fiscal year 2022-23, the jute sector contributed approximately $925 million to the country's export earnings. The government is actively working to further increase export earnings from this sector