EAM Asaduzzaman

Small jute mills of Rangpur division in the country’s northwest have resumed production after remaining shut for several months as raw jute prices soared after last year’s harvests and for the pandemic-induced business losses.

Some 130 jute mills out of 200 listed with the Bangladesh Jute Mills Association (BJMA) are operational. The northern region accounts for nearly 70 mills, most of which are small and medium in size.

The mills cater to the local market for hessian, jute bags and cloths as well as export destinations, including India.

The raw jute prices had reached as much as Tk 6,500 per maund (around 37 kilogrammes), said Abul Kalam Mintu, director of Selim Agro Industries Ltd at Saidpur upazila of Nilphamari district.

“But the price of the goods we produced did not rise proportionately, compelling us to incur losses. Under such a situation, most mills could not continue operation,” he said.

Exporting goods became difficult during the shutdown for a lack of transport and orders. “We also could not operate smoothly as we had to work with a reduced workforce to comply with social distancing rules,” he said.

In Rangpur, there are 22 small jute mills with the number of looms in each ranging from 36 to more than 400.

The mills employ 400 to 2,000 workers, said some millers in the region.

Bangladesh produces around 80 lakh bales of raw jute while local mills process 60 lakh bales to make yarn, twine, bags, sacks and other goods mainly for export and some domestic sales.

Last year production declined for unfavourable weather, fuelling prices of the fibre to reach the highest in history.

High market prices of raw jute caused an unhealthy competition among hoarders while most mills faced capital loss during the pandemic, high bank interest, and a lack of government incentive, which were a barrier for them to flourish, said mill sources.

Prokash Das, general manager of Ranu Agro Industries Ltd in Nilphamari, said, “Price of raw jute is abnormally high due to unhealthy competition of hoarders but our products can’t be sold in markets at a proportionate rate and so it is difficult to run the mill smoothly.”

The jute mills, most of which have been set up with bank loans, started seeing a glimmer of hope after Adamjee jute mills was closed down in 2002 followed by others under Bangladesh Jute Mills Corporation.

Purchasing old looms and other machinery from some of the closed mills and importing some, the small mills initially ran with some workers of the shuttered mills. The local workforce is now gradually replacing them.

“If the government provides all of us, instead of a few, with incentives to recover from losses, it would be easier to function,” said Md Shafiqul Islam, manager of Nine Jute Mill in Rangpur.

Mizanur Rahman Swapan, owner of SR Jute Mill of the district, said three to four small jute mills have already closed down for being unable to tackle manifold problems.

Siddiqul Alam, managing director of Equ Jute Process Ltd in Nilphamari, said the government made it mandatory for using jute bags to packet rice and other commodities and if it was enforced strictly, small jute mills would get a new lease on life.

“We urge the government to allow the export of raw jute, but only after domestic requirements are fulfilled,” said Aminul Islam Mintu, director of Selim Agro Industries Ltd in Saidpur of Nilphamari.

Farhanul Huque, vice president of the Nilphamari Chamber of Commerce and Industries, said, “We’ve discussed with the authority concerned regarding problems of traders and manufacturers, particularly about small jute mills.”

EAM Asaduzzaman

Jute twine produced at Equ Jute Process Ltd in Nilphamari. The mill has opened production on remaining shut for several months as raw jute prices soared after last year’s harvests and for the pandemic-induced business losses. Currently the mill is utilising 50 per cent of its capacity. The photo was taken recently.