Editorial
Jute sector reform
Downsizing cannot be the sole answer
It is common knowledge that the state-owned enterprises in the jute sector have been hemorrhaging to an extent that their cumulative losses stood at staggering Tk 4770 crore in 2006. Given the size of the monetary losses incurred so far, the Tk 1376 crore rejuvenation plan announced by Jute and Textile Adviser Geeteara Shafiya Choudhury Wednesday may sound appropriate. But it's a three-year programme, rather a longer-term one, for a sector that is confronted with all kinds of pressing problems to be resolved early enough to gain in a context where synthetics are fast losing ground to jute and jute goods.The programme aims at retrenchment in the four BJMC mills ordered shut down in Khulna, Chittagong and Sirajganj, to be eventually handed over to the private sector. There will also be downsizing of the work force by 50% in 18 other mills. In all, 14000 workers have been earmarked for 'golden handshake'. We are given to understand that after retrenchment a segment of them would be employed on daily-basis. The question is: would it be cost-effective? There is bound to be a social cost in jettisoning the excess labour. This can be mitigated by paying their dues upfront rather than in a staggering fashion. The focus is on downsizing whereas we believe it should have been squarely laid on management, labour unionism, financing, pricing, procurement and marketing issues. We gather that the jute ministry has formed a task force comprising representatives from jute and finance ministries and BJMC to oversee jute procurement activities which have been riddled with corrupt practices. The bureaucratic tangles between the finance and jute ministries as well as between the jute ministry and the BJMC will have to be done away with, otherwise all the reforms being contemplated now will turn out to be cosmetic. We suggest that a high-powered body of experts be constituted to go into all aspects of management. India and China have substantially taken away our traditional market share. But not all is lost yet; indeed, with increased investment in the best quality jute that we produce in the world, we stand a chance of massive recovery in the sector to be a front runner in the business.
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