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FBCCI panel for jute sector dev fund

Low-cost financing is now only way to revive the country’s jute sector, traders say

  • Special Correspondent
  • 29 June, 2022 12:00 AM
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FBCCI panel for jute sector dev fund

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Businessmen urged the government to form a jute sector development fund under which loans will be provided to the sector at 2 percent interest.

They said the fund will be like the Export Development Fund (EDF) and the low-cost fund is now the only way to revive the country's jute sector.

The businessmen came up with the call at the first meeting of the FBCCI Standing Committee on Jute and Jute Goods held at FBCCI office in Dhaka on Tuesday.

The meeting also demanded withdrawal of 2 percent tax at source on raw jute purchase and 10 percent on export incentives imposed in the proposed budget.

It also sought the government initiatives for permanent withdrawal of India's anti-dumping duty on jute products and waiver of bank loans of private jute mills.

The meeting called for initiatives to produce high yielding jute seeds in the country.

Speaking as the chief guest, Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) senior vice-president Mostofa Azad Chowdhury Babu urged the government to not impose tax on the export-oriented jute products.

He said the dire straits of the jute sector put millions of peoples’ employments under threat.

“Hence, I urge the government to support this sector with proper policy cooperation,” said Babu. 

According to FBCCI vice-president Md. Amin Helaly, this is the high time to revive the jute sector.

“The global demand for the golden fibre has been increasing due to the ban on plastics in different countries. This is the high to revive the sector,” he said.

Helaly assured that FBCCI would extend maximum cooperation to get policy support for the development of the jute sector.

Director In-Charge of the committee Mohammad Mahbubur Rahman Patwari said that this sector adds up to 200 percent value as both the industrial and agricultural products.

Calling for withdrawal of advance income tax, he said the imposition of AIT increases the price of jute goods.

President of Bangladesh Jute Mills Association and chairman of the Committee Md. Abul Hossain presided over the meeting.

He said the mill owners are suffering from a capital crisis due to high bank interest rates, high production cost with comparatively lower selling prices of the goods. “The low-cost financing will, therefore, act as a life savior of this sector.”

FBCCI director Bijoy Kumar Kejriwal, co-chairmen of the Committee Sk. Nasiruddin, Md. Rabiul Ahsan, Mohd. Shafiqul Islam, Md. Hasen Ali and S. Ahmed Mazumder also spoke at the meeting.

FBCCCI director Hafez Harun and secretary general Mohammad Mahfuzul Hoque, among others, were also present.