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Jun 18, 2023

Diversified jute goods exporters deprived of incentive: businesses

A file photo shows a man carrying jute fibres at a market on the outskirts of Dhaka. Diversified jute goods producers have been facing difficulties as in most cases they are deprived of incentives

A file photo shows a man carrying jute fibres at a market on the outskirts of Dhaka. Diversified jute goods producers have been facing difficulties as in most cases they are deprived of incentives offered by the government in exporting the items as the laws in this connection are contradictory, businesses said. — New Age photo

Diversified jute goods producers have been facing difficulties as in most cases they are deprived of incentives offered by the government in exporting the items as the laws in this connection are contradictory, businesses said.

Although the government issued a gazette notification in February announcing 282 jute products as agricultural products, the products, in many cases, were not being treated as agricultural products when getting cash incentive against exports, they said.

They also sought intervention from prime minister Sheikh Hasina for implementation of the declaration of jute products as agricultural products and ensuring 20 per cent cash incentive on the exports of diversified jute products.

The government also declared jute and jute products as products of the year 2023.

Recently, the Bangladesh Jute Mills Association in a letter to the prime minister said that if the declaration of jute products as agricultural products was implemented, the sector could earn $8 to $10 billion foreign exchange for the country by exporting jute and jute goods.

‘So we seek your kind intervention to treat all products made of jute as agricultural products,’ the letter said.

The 282 diversified jute products are yet to be selected for cash incentive as the list has not been sent to the Bangladesh Bank from the finance ministry.

‘The entire jute family is in despair regarding production and export of diversified jute products. So, we expect your kind direction so that we can get 20 per cent cash incentive on exporting our 282 diversified jute products,’ the letter read.

Md Rashedul Karim Munna, secretary general of the Bangladesh Jute Diversified Product Manufactures and Exporter Association, told New Age that the exporters were facing difficulties in availing cash incentives on the exports of diversified jute products due to the inconsistency between the Jute Act and a circular of the Bangladesh Bank.

The Jute Act, 2017 stated that products containing 50 per cent jute material would be considered as diversified jute products whereas the BB circular on cash incentive stated that the products would be considered as diversified jute products if 50 per cent of the total value came from jute, he said.

‘Many of the exporters are deprived of cash incentive on jute goods exports due to the differences between the act and the Bangladesh Bank circular and we request the government to consider the definition of diversified jute products as per the Jute Act, 2017,’ Munna said.

The BJMA in its letter to the prime minister said that although the government declared jute as agricultural product, the agriculture ministry secretary informed them that jute was agricultural product but the products made of jute were not agricultural products.

‘If the declaration of jute products as agricultural products is implemented, jute mills will get all benefits of agricultural products and the mills could improve their present position by exporting jute products and earn 8 to 10 billion dollars foreign exchange for the country,’ the letter said.

According to Export Promotion Bureau data, earnings from jute and jute goods export in the financial year 2022-23 decreased by 19.1 per cent to $912.25 million compared with those of $1.12 billion in FY22.

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