Jute sector needs low-cost funding like EDF: Businessmen

Like the Export Development Fund (EDF), businessmen on Tuesday called for forming Jute Sector Development Fund (JSDF) to facilitate the entrepreneurs with the loan at two per cent interest rate, reports news agency BSS.

They came up with this call at the first meeting of the standing committee on Jute and Jute Goods held at Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) in the capital city, said a press release.

They also mentioned that this low-cost fund is now the only way to revive the country’s jute sector.

The meeting also demanded withdrawal of 2 per cent source tax on raw jute purchase and 10 per cent on export incentives imposed in the budget, government initiative for permanent withdrawal of India’s anti-dumping duty on jute products, bank loans waiver of private jute mills and initiatives to produce high yielding jute seeds.

Speaking as the chief guest, FBCCI senior vice-president Mostofa Azad Chowdhury Babu urged not to impose tax on export-oriented jute products.

He further said the dire strait of the jute sectors put millions of peoples’ employment under threat. Hence, he urged the government to support this sector with proper policy cooperation.

Vice-president Md Amin Helaly said this is the high time to revive the jute sector as the global demand for the golden fiber has been increasing due to the ban on plastics in different countries.

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

Director in-charge of the committee Mohammad Mahbubur Rahman Patwari said that this sector adds up to 200 per cent value as both the industrial and agricultural product.

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

While presiding, president of Bangladesh Jute Mills Association and chairman of the committee Md Abul Hossain said mill owners have been suffering from a capital crisis due to high bank interest rates, high production cost with comparatively lower selling prices of the goods. “Therefore, low-cost financing will act as a life saviour of this sector.”

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

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