BJMA, BJSA threaten to shut mills from Feb 1 unless raw-jute hoarding stopped
Business Desk :
The country’s jute mill owners have threatened to shut their mills across the country from February 1 unless the government takes effective steps against raw-jute hoarding and ensure a steady supply of raw materials.
The Bangladesh Jute Mills Association (BJMA) and Bangladesh Jute Spinners Association (BJSA) made the warning in a joint letter to the adviser of the Ministry of Textiles and Jute on Monday.
In the letter, the associations said since the end of the 2024-25 fiscal year, normal production at jute mills has been seriously disrupted due to an acute shortage of raw jute.
According to them, the prices of raw jute have risen sharply because of exporting the same, thus making it difficult for mills to buy jute as per their requirement.
As a result, mills are unable to meet the demand of their foreign buyers.
The letter also alleged that some traders and middlemen are hoarding raw jute through creating an ‘artificial crisis’ in the market as supply remains much lower than demand.
The millers warned that if mills are forced to shut down, unemployment will rise, law and order may deteriorate, and the country will lose foreign exchange earnings, which will negatively affect the country’s overall economy.
Following a meeting with the secretary of the Ministry of Textiles and Jute on January 13, a list of hoarders was submitted to the Department of Jute, according to the millers.
Later, at a joint meeting held on January 21 at the department with representatives of BJMA, BJSA and the Bangladesh Jute Association (BJA), it was decided that raw jute stockpiled for export to India should be supplied to mills and sold in cash.
BJMA Chairman Md Abul Hossain said although some actions have been taken, it is nominal and hoarders continue to ignore government directives and refuse to release jute into the market.
As a result, more than 180 mills are now facing closure and they are also forced to buy jute at higher prices, supplying products at a loss.
BJSA Chairman Tapas Pramanik also demanded strong government actions against hoarders and sought instructions to ensure that raw jute stored in the warehouses of BJA traders is supplied to mills at reasonable prices.
Otherwise, all jute mills will be shut from February 1, they trade bodies warned.
The Export Promotion Bureau (EPB) figures revealed that the shipments of jute and jute goods exports continued to decline since FY’22.
Export earnings from the jute sector was $1.16 billion in FY21 while the amounts dropped to $1.13 billion in FY22, $911.51 million in FY23, $855.23 million in FY24 and $820.16 million in FY25.