Labour minister complains of bank refusal in loan disbursement for jute exporters

State Minister for Labour and Employment Munnujan Sufian has complained that some banks are refusing to disburse loan from incentive package to jute exporters who are badly affected by Covid-19 fallout.

She recently sent a letter to Finance Secretary Abdur Rouf Talukdar to take necessary measures to salvage the golden fibre industry.

Commerce ministry also want incentive facilities for tea businesses along with the raw jute exporters as both of these sectors are badly affected by the pandemic.
A letter, signed by deputy secretary Mohammad Mostafa Haider, was sent to finance secretary by the commerce ministry, revealing that the local tea sector badly needs the government announced an incentive for the working capital from banks.

Munnujan Sufian’s letter reveals that the banks are refusing to provide loan to raw jute process export from working capital incentives as they have been hard hit by the Covid-19 pandemic.

In this regard, the letter reads that the local raw jute exporters have earned Tk 5,159.33 crore during the last five years.

According to the letter, the 100% foreign currency will be earned from the processing and export of the raw jute. After grading of the raw jute the hydronic machine can produce 182.25 kg paka jute. That paka jute is exported through land and seaports including Chattogram, Mongla, Benapole, and Banglabandha.

The letter further reads a total of 50,000 labour from Khulna, Dhulapur, Narayangani and southern districts are now involved in the raw jute packaging and processing and grading.
Bangladesh Jute Association Chairman Sheikh Saeed Ali agreed with state minister statement.

He also said, “We need working capital for processing the jute goods for export smoothly.”
Many businesses have to shut down because of a ban on the export of raw jute since 2017, he said.

Chairman also said now processing of jute goods export remains stalled due to the Covid -19 pandemic.

In the commerce ministry letter, the consumption of tea declined due to restriction of movement of people in hotels, restaurants, tea shops amid coronavirus pandemic. The prices of tea in the domestic market declined by 47%. The tea traders need working capital with a 4.5 per cent interest. Auction of the tea suspended during the lockdown, the letter said.

The Bangladesh Tea Sangsad sent some recommendations to be implemented by the commerce ministry for improving financial situation. Recommendations include the demand of tea businessmen for a loan from working capital incentives fund from the banks, it said.

The government has so far announced 19 stimulus packages worth over $12.11 billion (Tk 1,06,957 crore) to offset the Covid-19 shock on various sectors and minimise the sufferings of the people hit hard by the nationwide shutdown imposed to curb the spread of the deadly virus.

The highest amount of Tk 300 billion (Tk 30,000 crore) has been allocated for providing working capital facility to the affected industries and service sector organisations.

ask/wi