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Local jute goods exporters have requested the government to resume operation of 10 state-run jute mills aiming to protect the sector, sources said.
Bangladesh Jute Goods Exporters Association (BJGEA) has recently written to the Ministry of Commerce requesting it to take necessary steps regarding the issue.
It has also placed a set of proposals, including solution to a phytosanitary certification (PC) problem, coordination among scheduled banks, port authorities and shipping firms, etc.
Currently, there are 274 members registered with the private sector association.
The BJGEA has requested the government to resolve the complexity over the PC issue as the country sees a less volume of export earnings compared to Japan, Thailand, China, Vietnam, Indonesia and Malaysia now due to the existing certification problem.
The association has also urged the Ministry of Agriculture and the Department of Agricultural Extension to resolve the PC problem.
It has sought introduction of modern tracking management, and easing of export-related problems through coordination among banks, port authorities and shipping lines.
The BJGEA has also requested the government to cut the existing source tax on procuring raw jute, according to the letter.
Currently, the government has imposed a 2.0 per cent source tax on the procurement of raw jute. On the other hand, a move is going on to impose such a tax on export orders for such goods, the BJGEA has mentioned.
Besides, the association has urged the government to take the required move for resuming the
operation of 10 state-owned closed jute mills under the Bangladesh Jute Mills Corporation (BJMC).
The BJMC declared closure of 25 jute mills in July 2020.
The exporters under BJGEA collected the goods from the closed BJMC mills with advance financing. Currently, they have been facing difficulties with collection of jute goods from the Bangladesh Jute Mills Association (BJMA), resulting in a negative effect on export activities.
Bangladesh earned Tk 1.16 billion from exports in the jute sector in the fiscal year (FY) 2020-21. Of the volume, some Tk 138 million was earned from the export of raw jute, according to the letter.