FBCCI for low-cost fund to develop jute industry

Leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) have called for the creation of a low-cost fund for the jute sector to provide loans to entrepreneurs at 2 per cent interest rates.

Pointing out that a low-cost fund, like the Export Development Fund (EDF), is currently the only way to revive the nation’s jute industry; they also urged the government not to impose taxes on export-oriented jute products.

They made the call during the first meeting of the standing committee on jute and jute products, which was held at the FBCCI office in the capital on Tuesday.

The participants also made several other demands that included the following: the withdrawal of the 2 per cent source tax on raw jute purchase and 10 per cent on export incentives imposed in the budget; a government initiative for the permanent withdrawal of India’s anti-dumping duty on jute products; bank loans waiver of private jute mills; and initiatives to produce high-yielding jute seeds.

Speaking as the chief guest, FBCCI Senior Vice-President Mostofa Azad Chowdhury Babu said, “The dire straits of the jute sector put millions of people’s employment under threat. Hence, I urge the government to support this sector with proper policy cooperation,” he added.

Vice-President Amin Helaly said this is the perfect time to revive the jute sector as the global demand for the golden fibre has been increasing due to the ban on plastics in different countries.

“FBCCI would extend maximum cooperation to get policy support for the development of the jute sector,” he added.

Bangladesh Jute Mills Association (BJMA) President Abul Hossain said mill owners are suffering from a capital crisis due to high bank interest rates, high production costs and comparatively lower selling prices of the goods.

“Low-cost financing will therefore save this industry’s life,” he added.

Among others, FBCCI Senior Vice-President Mostofa Azad Chowdhury Babu, Vice-President Md Amin Helaly and Director In-Charge of the Committee Mohammad Mahbubur Rahman Patwari were present at the program.