FBCCI to collaborate with entrepreneurs to revive ‘golden era’ of jute industry
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will collaborate with entrepreneurs in the jute sector, as well as government and private sector stakeholders, aiming at reviving the "golden era" of the jute industry, the federation's President Mahbubul Alam has said.
"Our jute industry has been a cornerstone of our economy, serving as a primary driver of foreign exchange earnings. Even after the independence, the jute industry maintained its glory for several years," he added.
Mahbubul was taking part in a meeting with key stakeholders in the jute sector held on Thursday at the FBCCI office.
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Mentioning that various factors have led to the gradual decline of the jute industry, he said, "Initiatives are urgently needed to restore its former glory… The 'golden fiber' of jute is renowned and cherished globally."
He added that the federation will work to address the current challenges of the jute industry.
Mahbubul further underscored the need to diversify jute products to boost exports and announced the federation's commitment to providing comprehensive support to entrepreneurs in the sector to create new markets and increase exports.
During the meeting, participants from various organisations and entrepreneurs in the jute sector placed several recommendations to address the industry's existing challenges.
These include – abolishing the 2% source tax on raw jute, implementing the Jute Wrapping Act 2010 fully, halting the use of polythene, initiating appeals against anti-dumping measures, designating jute products as agricultural products, establishing a jute sector development fund to support the industry, providing a 30% subsidy for modernising jute mill machinery, arranging low-interest rate bank loans, adjusting tax rates on jute exports, increasing cash assistance to 20% for various jute products, waiving tax at source on export incentives, ensuring the supply of high-yielding jute seeds, and improving the accuracy of raw jute production, consumption, and export statistics.
Md Abul Hossain, chairman of the Bangladesh Jute Mills Association and FBCCI director, stressed the importance of establishing a jute sector development fund similar to the Export Development Fund to protect the industry.
He also emphasised that providing low-interest loans to the jute industry would encourage mill owners to diversify their product offerings and promote sales and exports in both domestic and foreign markets.
At the meeting, members of the jute industry expressed concerns about the 2% source tax on raw jute affecting farmers and traders, potentially discouraging jute production and disrupting the industry.
They also called for the mandatory use of jute wrapping, as stipulated in the Jute Wrapping Act 2010, to boost domestic demand for jute products.
FBCCI's former vice-president and Director Habib Ullah Dawn, Director Abul Hossain, Alhaj Azizul Hoque, Niaz Ali Chisty, Fakhorus Salehin Nahian, and leaders from the Bangladesh Jute Mills Association, Bangladesh Jute Goods Exporters Association, Bangladesh Jute Association, Bangladesh Jute Spinners Association, Bangladesh Diversified Jute Goods Producers, Exporters Association, National Skill Development Authority, and Banglacraft were present at the meeting.
