Form independent jute board, ensure fair price
The government should form an independent jute board and ensure fair price for producers to revive the potential jute sector, a dialogue on jute sector organised by Centre for Policy Dialogue (CPD) was told yesterday.
The dialogue styled 'In Search of a Future for the Jute Sector: Constraints, Opportunities and Policy Options' in Dhaka also emphasised a 'mandatory packaging act' to create a domestic market for jute.
“There are many people and groups working on jute sector but still there is not a single platform where all can discuss issues relating to the jute sector," said Shirin Akhther of Karmajibi Nari.
She also stressed the need for reviving Mongla Port to export jute easily and ensuring more use of jute for packaging different products including food, fertiliser and cement under a packaging act to create a secured domestic market of jute.
In the dialogue, CPD also called for an independent jute board comprising all major stakeholders that will take policy-related decisions on the jute sector.
The board will work out a plan of action, give guidelines, monitor performance and provide support for the sector, said Golam Moazzem, research fellow of CPD.
“When farmers were selling jute a few months ago its price was Tk 600-700 per maund (around 37kg), but now the government is buying it at around Tk 1,000 from the hoarders,” said Shahidullah Chowdhury, working president of Bangladesh Trade Union Kendra.
Farmers were not benefited since they had already sold their produce, he said, adding that now the hoarders are getting the extra price.
Shahidullah also put emphasis on fixing a minimum price of jute to ensure fair price for the farmers.
Chairman of CPD Rehman Sobhan suggested that pressure should be put on the next elected government for making jute a big policy agenda, as jute is still a major source of income for the country.
He said, “In Bangladesh jute is related to livelihood of a large number of people that is unique in the world. So we cannot set guidelines on jute following other countries.”
Giving an example, he said Bangladesh produces jute focusing on its export market, while India produces it for its domestic market. So the course of action for the two countries should be different.
Between the period 1981-82 and 2006-07 Bangladesh's total production of jute goods decreased by 55.59 percent, while during the same period India's increased by 19.46 percent, said Uttam Deb, head of Research Division of CPD.
He also said Bangladesh accounts for 75 percent of the total global jute exports with its 60 percent of jute products being exported. The domestic market of jute goods is also expanding, he added.
The dialogue also forecast that increased price of petroleum will also help popularise jute bags and packages due to higher prices of polypropylene products.
Textiles and Jute Secretary Abdur Rashid Sarkar told journalists that quality seeds, jute price, export and production would be the possible areas that the upcoming jute policy should focus on.
Speakers at the dialogue also stressed the importance of giving subsidy to the farmers to encourage them to continue producing the cash crop.
Bangladesh Jute Mills Corporation Chairman Ataharul Islam, Chairman and Managing Director of Pubali Jute Mills Ltd Kamran T Rahman and Prof Abu Ahmed of the Department of Economics at Dhaka University, among others, spoke.
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