Khulna: The government plans to lease closed jute mills to the private sector to facilitate their reopening, announced Sk Bashir Uddin, Adviser to the Ministry of Textiles and Jute. This initiative aims to rejuvenate the jute industry and create employment opportunities.
According to Bangladesh Sangbad Sangstha, Bashir Uddin shared these developments during a media briefing after inspecting the Daulatpur Jute Mills operated under the Bangladesh Jute Mills Corporation (BJMC) in Khulna. The adviser highlighted that leasing the mills provides businesspeople the chance to invest and revive these facilities, thereby generating new jobs.
The Daulatpur Jute Mills are currently managed privately, as stated in a press release from the Commerce Ministry. Bashir, who also serves as the Commerce Adviser, mentioned that the government textile mills in Kurigram were leased to the private sector last week. He expects the leasing process for three additional mills to conclude within this week.
Bashir explained that government-managed jute mills have historically incurred significant financial losses, prompting the decision to lease them to private enterprises. The country’s annual jute demand stands at four million metric tons, but domestic production only reaches 1.2 million metric tons. With global jute production at 2.5 million metric tons annually, sustaining numerous mills solely on jute is impractical.
To address this, the government is easing leasing conditions and allowing for the establishment of other industries alongside jute-based ones. The reopening of Daulatpur Jute Mills under private management has already resulted in about 700 new jobs, with plans to create opportunities for 3,000 more individuals.
Bashir remarked that private-led initiatives have shown promise in creating employment and maintaining profitable operations by producing both jute products and shoes. He expressed skepticism about the effectiveness of government-led efforts in achieving similar success.
In response to inquiries, Bashir asserted that the market syndicate is not more powerful than the government. He assured that the government is closely monitoring commodity stocks and supply, predicting that the temporary crisis in the edible oil market would resolve soon.
The media briefing was attended by the Deputy Commissioner of Khulna, Mohammad Saiful Islam, along with officials from Daulatpur Jute Mills.