Local private jute millers sought a 30% cash subsidy on machinery modernization due to outdated units that expired decades ago.
As a machine has a lifespan of 10 to 15 years, they claimed that roughly 80% of the machines were purchased prior to independence (60 to 65 years ago), meaning that they expired 45 to 50 years ago.
As a result, the production capacity of jute mills has decreased significantly. In such cases, the machines need to be changed gradually. And it will be easier for the millers to replace the machinery if the government provides cash assistance, millers added.
The Bangladesh Jute Mills Association (BJMA) has raised the issue in a meeting with the Minister for Textiles and Jute Jahangir Kabir Nanak recently.
They said the production capacity has decreased by 20% to 30% due to aging machines.
Abdul Barik Khan, secretary general of the BJMA said that the units have since been repaired at various times, now they are very old.
"While some mills have added new equipment, the majority have not. Production is thus declining daily," he said.
Currently neighbouring country India is using modern machines in jute mills which results in good production, he added.
"Because of our outdated machinery and low production, the price of Bangladesh jute goods is high, which is detrimental to our ability to survive in the global market," Khan stated.
They also demanded measures to withdraw anti-dumping duties imposed by India, exemption of existing 2% source tax deduction at the purchase stage of raw jute, and supply of good jute seeds.
BJMA runs more than 250 jute mills that produce mainly hessian, sacking, and Carpet Backing Cloth (CBC).