Financial crisis let nine state-owned jute mills in Khulna and Jashore region to face setback in buying raw materials and lay away from meeting the production targets. Up until May 5, just around 29 percent of this year’s purchase target of 7,48,596 quintals of jute has been met, BJMC sources said. Current stocks in those mills, seven in Khulna and two in Jessore, are set to last from around 5 to 16 days. Production target of these mills were set at 272 tonnes for every day – mainly sack, hessian, carpet backing cloth and yarn during 2019-20 but they are producing 92 tonnes so far causing serious setback, according to Md Sazzad Hossain, Bangladesh Jute Mills Corporation’s (BJMC) liaison officer for Khulna. This is around 33 percent of the target, he said. A total of 2,227 out of 3,650 handlooms have been left unused and the 1,423 that are running are facing complications for long. Citing an example of the situation, an official of Platinum Jubilee Jute Mills, said they could meet only 19 percent of their purchase target for raw materials so far. For this they are producing just 11 tonnes of products instead of the targeted 50 tonnes daily, he said. Industry sources said good quality jute becomes available around June-July while government owned jute mills get funds during October-November period. They can’t buy jute in time. While private jute millers avail the quality jute in time, the state-run mills have to go for lower grade at higher prices.”The authorities have to pay Tk 800 to 900 to buy a maund in the off-season. At the same time these mills suffer for quality jute,” said an official adding the BJMC needs to take pragmatic steps to buy raw jute during the peak season.General Secretary of Crescent Jute Mills’ collective bargaining agent said delay in purchasing raw jute was forcing factories to incur more losses. “This subsequently increases the production costs and hamper smooth running of the mills,” he said.
