POBNEWS24.Net, Dhaka, Mar 11, 2021:Of the six private jute mills at Syedpur in Nilphamari, five have stopped production. As a result, about 15,000 workers of these mills have become unemployed.
Jute mill owners say the price of raw jute in the local market has doubled. But the price of the product has not increased. Due to this the mills have faced huge losses. So the mill owners have decided to stop the production activities of the factory. The six private jute mills in Syedpur are Eku Jute Process, Poddar Agro Industries, NB Jute Mills, Ranu Agro Industries, Afzal Jute Mills and Selim Jute Mills.
Asked about the closure of the factory, Siddiqul Alam, managing director of Eku Jute Process, said, “The price of raw jute has suddenly gone up by Tk 3,000 to Tk 6,000 in the local market. This situation has been going on for two months. But the price of our jute products has not increased at all.
Speaking to several local jute mill owners, it is learned that jute twine is currently being sold at Rs 3,000 per ounce. And the price of each jute sack is 75 rupees. 45 sacks are made in 1 mana jute. As a result, one mana jute sack is being sold for less than three thousand rupees. Similarly, jute sacks are also being sold at Rs 3,000 per ounce. But to buy one ounce of raw jute costs six thousand rupees. Along with this, 30 percent more money is spent on the total production cost including labor wages, electricity bills, administrative expenses. The cost of raw jute is not rising there. The cost of production or profit calculation is a far cry. As a result, the mill owners have decided to close five jute mills to reduce the financial loss.
Rajkumar Poddar, director, Poddar Agro Industries, Syedpur BSIC Industrial Estate, said jute is being exported in large quantities at present. Due to this the price is increasing rapidly. And Sushil Kumar Das, chairman of Ranu Agro Industries, thinks there is no alternative to reducing the price of jute if jute mills are to continue.
Shahidul Islam, a jute trader at Taraganj Hat near Syedpur, said jute production in the country was low last year due to heavy rains. Exports have also increased again. Due to this the supply of jute in the market is less.
Meanwhile, Sultan Hossain, a farmer of the local Kamarpukur Union, said the price of jute has suddenly gone up since last February. Farmers are benefiting from this. However, farmers have now reduced the production of jute.
