A new beginning for jute
5 small private sector mills running profitably in Rangpur, 3 more coming up
Some small jute mills in private sector in greater Rangpur, mostly set up with old machinery of closed state-owned big mills, have created new hopes for the sector while big public sector units are being closed one after another with heavy losses and financial burdens.
Investment in such small profitable units is increasing in the area despite a number of setbacks at different levels.
About Tk 100 core has been invested in five such small jute mills in Rangpur, Kurigram, Panchagorh and Nilphamari in last five years. The mills having 50 to 100 looms are running profitably, their owners told this correspondent.
Most of the machinery and equipment of these mills were purchased from Adamji Jute Mills, closed about four years ago, while some others were procured from India. The jute mills include Jem Jute Mills Ltd. in Panchagarh, Poddar Agro Based Industries in Sayedpur, Nayeem Jute Mills, Bhai Bhai Jute Mills and JK Jute Processing Works in Rangpur.
At least three more units are coming up soon in northern districts.
Different banks have shown interest to give loan to the proposed jute mills as it has emerged as a potential sector in northern districts, a jute growing area.
The proposed ones include Kurigram Jute Mills in Kurigram, Azad Jute Mills in Lalmonirhat, and ND Jute Mills in Sayedpur.
At least 3000 workers and employees are employed in the five mills now in operation. Each skilled worker earns at least Tk 3000 a month.
Raju Poddar, one of the directors of Poddar Agro Based Industries in Sayedpur BSIC industrial area, said job opportunities can be created for at least 5000 people if the proposed jute mills start operation.
The mills mainly produce jute bags and fibre. About 40 tonnes of bags and fibre are produced in the mills a day.
Poddar said, wall mat, carpet, rugs, windows curtain,cushion cover, vanity bag, suitcase, briefcase, travel bag and some other fashionable items can be produced from jute, which have good export market.
Demand for these jute goods is growing abroad as these are environment friendly, Poddar added.
"What we need now is financial as well as technical support from government," said Gokul Poddar, director of proposed ND Jute Mills at Sayedpur.
The mills should be given loan at 7 to 8 per cent interest but all commercial and specialised banks except Basic Bank charge 12 to 15 per cent, he said.
Load shedding is another major hurdle, said Orup Kumar, director of JK Jute Processing Works at Rangpur Jummapara. "We are at the initial stage now. At this stage we need to earn more profit. Frequent load shedding and inadequate technical hands are the major problems," he said. One hour's load shedding causes a loss of about Tk 4000, he said.
Kolimullah, another director of JK Jute Processing Works, said reduce production cost can be reduced if they can have local technicians. Now they have to hire technicians from Dhaka or other areas at higher pay, he explained.
Kolimullah said the newly-set up mills now need uninterrupted power supply and skilled workers and technicians for smooth running.
Kolimullah said, Basic Bank gave Tk one corer loan for their mill and about half of it has been repaid in three years.
The initiative by entrepreneurs in setting up small jute mills is appreciated by different quarters. Talking to this correspondent, Rangpur Chamber of Commerce and Industry president Mostafa Azad Choudhury said the government should frame a policy for small jute mills.
A number of entrepreneurs in Rangpur are willing to set up small and medium scale jute mills. But high interest rate and load shedding discourage them, he said.
Executive Director of Jute Diversification and Promotion Centre Dr ABM Abdullah said there is scope for more such small jute units in greater Rangpur region.
About 15000 jute bags are needed a day in eight northern districts but the five mills can hardly supply two-thirds of the demand, he said.
Replying to a question, Dr. Abdullah said, "We are thinking to start a training programme to create skilled jute workers and technical hands in northern districts."
JDPC in Rangpur is also trying to diversify jute products, he added.
This correspondent also talked to agricultural scientists and experts, who look forward to small jute units positively.
Chief Scientific Officer of Rangpur Jute Research Institute Ayub Ali said, the government should promote setting up of more small jute mills in northern districts as the area produces the main raw material.
According to Ayub Ali, about 4 lakh hectares in the region are suitable for jute cultivation. But farmers are now less interested to cultivate jute because of low price as most big mills are closed.
The golden fibre may get back its glorious days if the government takes up a suitable policy, he said.
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