Comprehensive study planned for jute sector
May 22nd, 2007
Industries adviser Geeteara Safiya Chudhury said on Monday that the government had launched a crusade for the revival of the country’s jute sector.
She also stressed the need for a 25-year industrial policy to avert abrupt policy shifts with the change of the government.
‘I have waged a crusade to make the jute sector viable and worthy for the country,’ Geeteara said at a seminar organised by the Economic Reporters’ Forum, wondering why jute was losing ground despite a growing demand for it across the world.
A comprehensive study would soon be undertaken by the industries ministry to decide the policy measures to make the jute mills viable and competitive in the international market.
The study, involving all stakeholders including trade union leaders, would see whether jute mills could be run viably under the government’s management or should be privatised, said Geeteara, also adviser for jute and textile, social welfare, and women and children affairs ministries.
‘Jute is in a bad shape with the public sector jute mills have been suffering from supply constraints of raw jute, non-availability of electricity and huge amount of outstanding bank loans,’ a frustrated Geeteara told the discussion at the Dhaka Reporters’ Unity conference room.
‘Buyers rush to neighboring India as we could not provide them with adequate supply on time.’
ERF in partnership with Katalyst, a donor-funded private sector promotional agency, organised the seminar, styled ‘National Budget for 2007-2008: What’s in the basket for SMEs’.
Dhaka Chamber of Commerce and Industry president Hossain Khaled, ERF president Zakaria Kajol and general secretary Nazmul Ahsan also addressed the seminar. Titu Datta Gupta, joint news editor, New Age presented the keynote paper on the issue.
The adviser told the seminar that the present government was keen to extend all-out supports for small and medium enterprises so that they could contribute more to the country’s economy and generate more employments.
The ensuing budget will address a number of major hindrances of SMEs, she hoped, without elaborating.
The adviser felt a long-term industrial policy would be more helpful for small, medium and large-scale industries than a five-year policy.
‘With the change of a government, new industrial policy is formulated, which hampers long-term industrial ventures of the entrepreneurs,’ she said.
Hossain Khaled said the government should withdraw turnover tax imposed at a rate of 0.50 per cent on small and medium enterprises.
‘It is unrealistic to tax SMEs on their turnover, which in no way proves profit of a business,’ the Dhaka chamber president said.
He said the SME refinancing scheme of Bangladesh Bank is so complicated that even banks are returning the money.
The chamber leader strongly suggested creation of ‘Banking Ombudsman’ to oversee the activities of central bank and scheduled banks.
He also demanded elimination of discretionary powers of taxmen and an end to bribery and harassment which discourage businesspeople to pay tax and deprive the government of due revenues.
Sources: Daily New Age