India has grabbed the entire global market for jute and jute goods, which is very alarming news for Bangladesh, Finance Minister AMA Muhith said yesterday.
“We want to enhance our jute export in the global market as the government is now estimating the demands for jute and its products in the global market,” he told reporters, after a meeting with the leaders of Bangladesh Jute Goods Association (BJGA) at his Secretariat office.
“Jute is one of my favorite sectors, which is now struggling due to lack of fund and financial support.”
As jute and jute items are not sophisticated ones to export, that is why Bangladesh is not doing well in this sector, the minister told the BJGA leaders.
Attending the meeting, BJGA Chairman Kamrul Islam Khan placed four-point demands, including 3% subsidy on the export amount of jute goods.
The other demands are withdrawal of 15% VAT on license fees and bank loan facilities with only 9% interest rate, which is now being enjoyed by the readymade garment owners.
“We also need CIP facilities like readymade garment exporters,” Kamrul said. He noted the government would execute the jute packaging law to popularise the local jute goods.
“We want to export jute and jute goods in the middle-eastern countries apart from the USA and the European countries.”
A total of nine lakh tones of jute and jute goods are being produced in the country annually. Of them, 88% jute goods are being exported the rest being used domestically. Earnings from this sector rose to Tk1,600 crore last year.