State Owned Jute Mills in Dire Financial Straits

Govt owned jute mills in Khulna industrial belt are going through a severe financial crisis for various reasons, including inability to sell their produced goods. Some jute mills including private ones are facing closure due to acute crisis of raw materials.

Most mills cannot purchase raw materials and pay workers’ wages failing to sell large quantity of produced jute goods. According to an estimate of March this year, jute goods worth Tk400 crore have remained unsold in the government mills.

Some jute mills including private ones are facing closure due to acute crisis of raw materials.

Terming the condition of the state-owned jute mills ‘pitiable’, sources concerned said that a process was going on to privatise the government-run Alim Jute Mills.

Besides the state-run mills, private Sonali Jute Mills and Mohsen Jute Mills have already been closed, they said, adding that Azax Jute Mills and Khulna Hardboard Mills were also limping.

Officials concerned said the process to shut down the jute mills began after the BNP-led four-party alliance government closed down Khulna Newsprint Mills on November 30, 2002.

On December 15 the same year, Khulna Harboard Mills was closed down.

However, being reopened on September 14, 2005, the mill started production in a limited scale with a few workers.

The mill is yet to come to a stable position. Privately owned Mohsen Jute Mills of Shiromoni industrial estate has remained closed since it was laid off.

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