The jute industry, which is already suffering due to the lack of raw products and the on going political violence, is further troubled with the increased price of jute batching oil (JBO).
JBO is an essential element in processing the raw jute. The jute mills mainly use the oil to soften the raw jute before it is put in a machine. The sudden rise in the price has forced the jute mills in Khulna, Jessore, Faridpur and Gopalganj to spend an extra Tk3 crore.
Though it is possible to buy the raw jute in credit, the owners must pay in advance to get the JBO.
Gazi Shahadat Hossain, owner of Crescent Jute Mills, said his factory needed about 18,000 litre of JBO in a week. The increase in the price has caused him to spend Tk7,56,000 extra in a week.
Workers of the various jute factories were worried that though the owners could manage the price hike by increasing their product prices, it would be their pay that would be affected.
The Ministry of Power, Energy and Mineral Resources on February 4 issued a notification increasing the price of JBO to Tk110 from Tk68 to check the adulteration of soya bean oil.
Meghna Oil Company Khulna depot in-charge Mahiuddin Chowdhury said: “JBO has the same colour as soya bean oil. Also the price was cheaper than that of any other edible oil. So some corrupt traders was mixing it with soya bean oil posing a great threat to public health. Hence the government decided to increase the price.”
Earlier, the BPC sent an official proposal to the ministry seeking equalisation of the price of JBO with that of edible oil.
JBO, after being refined at the Eastern Refinery, is distributed across the country through three state owned oil companies – the Padma, Meghna and Jamuna oil companies.
Since the price increased, the oil companies distributed about 6 lakh 62 thousand 850 litre of JBO, worth Tk2,78,39,700, to the nine jute mills of Khulna and Jessore.
In-charge of Padma Oil Company Khulna depot Anwar Hossain said supply of JBO was less in recent times due to the political violence. However, his company supplied about 6000 litre of JBO each day since February 4.
And from Meghna depot, about 13,000 litre of JBO is supplied each day.
Deputy Managing Director of Bangladesh Jute Mills Corporation and Khulna liaison officer Md Rafiqul Islam said the price hike would adversely affect the payment of salary to the workers.
“Though some corrupt businessmen is using JBO to adulterate soya bean oil, the price should be kept at an acceptable level for the sake of the sector,” he said urging the authorities to reduce the price.
However, Jahangir Alam Sabuj, general secretary of workers’ association of privately owned jute mills, said the increased price was unlikely to hit the workers since owners could now make more profit.
“One drum of JBO was sold at Tk23,500 instead of Tk17,500. The price of raw jute has also increased by Tk200 per maund. But, the owners could now sell their products for Tk60-63,000 per tonne, which is a sharp rise from Tk51,000,” he added.