Loss making state- owned jute mills should be shut down. Develop them as industrial parks
We are concerned by the government’s plan to allow the Bangladesh Jute Mills Corporation to borrow money from a Chinese state-owned textile company to rehabilitate 28 loss-making jute mills.
This is a terrible idea. If the capacity of the state-owned mills is increased in the current market, there will be even more excess production capacity, and the losses of the jute industry will be even more severe.
Loss-making state-owned jute mills have proven themselves to be a huge drain on the public purse. Like other state-owned industries in Bangladesh, they are beset by poor management and corruption. It does not make sense for taxpayers to borrow money so that more of it can be wasted or misappropriated. It also goes against previously announced plans to sell stakes in government jute mills this year.
The government should not be throwing more good money after bad into loss-making state jute mills.
As a major jute-producing nation, there ought to be a healthier future for our jute industry, given that worldwide demand is growing. However, the industry will not be helped if private sector jute mills are forced to compete with endlessly-subsidised state-owned jute mills.
Loss-making state-owned jute mills should be shut down. The government should lease or sell their land and buildings so they can be developed as industrial parks led by the garment industry.
This will help secure jobs and attract new investment, and will be a far more productive use of these state assets.
Source: Dhaka Tribune
