Govt to finally recognise jute as agro product

Amid renewed demands from traders and farmers, the government has finally decided to recognise jute as an agricultural product considering the widespread use of jute goods in both home and abroad.

Prime Minister Sheikh Hasina directed authorities concerned to implement the decision during the regular cabinet meeting at the Prime Minister’s Office (PMO) on Monday, according to Cabinet Secretary Md Mahbub Hossain.

Jute is currently treated as an industrial product.

Briefing journalists at the secretariat, Secretary Mahbub said now it has been decided to recognise it as an agricultural product amid growing use of the once famous golden fibre. “As a result, jute will get all the benefits like other agricultural products.”

Prime Minister Hasina had announced to recognise jute as an agricultural product on 6 March, 2016 during the opening ceremony of a multipurpose jute fair.

“Jute is an agricultural product. It is incomprehensible that any goods with the slightest relation with agriculture get special benefits as agricultural products, but jute does not,” the premier said at the time while announcing to give jute its proper recognition.

Businesses have long been demanding that jute be recognised as an agro product.

They complained that jute goods are missing out on the government subsidy provided to agro products due to the lack of recognition. Products made from the golden fibre also enjoy comparatively less benefits for the same reason.

Industry insiders said farmers are losing interest in jute cultivation due to a lack of sufficient benefits even as demands for jute goods are on the rise due to being environment-friendly.

According to textile and jute ministry data, Bangladesh once had 82 jute mills operating across the country.

But around the 1980s, authorities began to sell the mills at nominal price on the pretext of privatisation. So far, 60 jute mills have been privatised in this manner.

In 2002, the Adamjee Jute Mills, one of the largest in the world, was closed down on account of its recurring losses and labour unrest.

The Awami League-led government reopened five jute mills and two textile mills after returning to power in 2009.

Besides, between 2014 and 2018, the government took control of six jute mills following breach of conditions by the mill owners, and handed them over to Bangladesh Jute Mills Corporation (BJMC).

But amid staggering losses, the government on July 1, 2020 sent over 24,00 workers of 25 jute mills under the BJMC into retirement through golden handshakes after liquidation. Three jute mills were later handed over to private management for resuming operation, of which two are currently in production.

In order to accelerate the revival and modernisation of the jute industry, the government has passed and formulated multiple laws and policies– Mandatory Jute Packaging Act 2010, Jute Act 2017, National Jute Policy 2018.

National agricultural marketing policy

Meanwhile, the cabinet yesterday cleared the draft of the National Agricultural Marketing Policy, 2022.

In addition, the premier has instructed authorities to formulate a new agricultural product processing export policy to emphasise the production of processed products based on the market demand of different countries of the world, said Cabinet Secretary Mahbub.

He said, “The agricultural marketing policy will be market-friendly for farmers and agricultural business. It will ensure information delivery, and strengthen the community and group systems.

“Also, product storage and warehousing systems will be developed. E-agriculture support will be enhanced. Marketing of processed products will be expanded. Additionally, it will help determine and ensure reasonable pricing of products.”

The cabinet, in its regular meeting, also gave in-principal approval to the draft of Bangladesh Energy Regulatory Commission (Amendment) Act 2023 in a bid to replace an existing ordinance that paved the way for the government to adjust the prices of gas and electricity without public hearings. It will now be placed in the parliament to be passed as a law.

The cabinet meeting also gave in-principal approval to the draft of Sheikh Hasina Agricultural University Act-2022 to establish the country’s 9th agricultural university in Shariatpur.