BJMC Losing Money Because of Falling Exports

Bangladesh Jute Mill Corporation is losing money because of falling exports. They can not buy raw jute in time for want of funds. The government is reluctant to give them more money after it has taken over the past liability of the BJMC. The Corporation must find its own resources to buy raw jute in the way the private sector jute mills do. Jute goods worth Tk 7.0 billion have been piled up in the BJMC mills, which is a big burden.

The Bangladesh Jute Mill Corporation [BJMC] project for rehabilitation of jute mills is a non-starter. This project was there for a long time in different shapes. The government perhaps is not in a mood to make capital investment in the sick jute sector. 

The BJMC may run the viable mills only and other mills may be considered for privatization. As the government has no appetite for privatisation, the loss-making mills may be auctioned for disposal.

In the economic survey for 2013, the loss of the BJMC for the year 2012-13 was estimated at Tk 3.80 billion. The BJMC’s loss has been the highest among the state-owned enterprises. The mills are running with old machineries for which the productivity is low. The Jute Commission could not find a viable solution for the jute sector. The next budget may address the problems of the sector in a comprehensive manner.

Jute was once known as the golden fibre but after liberation of Bangladesh we could not sustain its glory. Wholesale nationalisation of all jute mills is blamed for the ills of this sector. It is now a burden on the economy. Businessmen are not willing to sell jute on credit to the BJMC as they have no confidence in the organization. The traditional policy on jute is not successful. We have the example of the private sector before us. Guidance of the private sector may be useful for a solution.