Mismanagement, corruption, poor planning behind losses incurred in state-owned jute, sugar mills: study

The Daily Star  December 21, 2020
Star Online Report

Workers are not responsible in any way behind the losses of state-owned jute and sugar mills, with the blame laying on mismanagement, massive corruption, and absence of proper planning, a group of educationists and researchers have said.

They also said there was no real basis for the argument that privatisation would lead to expansion of the industry.

Prof Dr Mohammad Tanjimuddin Khan and Prof Moshahida Sultana of Dhaka University and researcher Dr Maha Mirza said this while revealing their report on the shutdown of state-run jute and sugar mills at a press conference at the Dhaka Reporters Unity today.

The report was made following their visit to different jute mills in Khulna and sugar mills in northern districts.

They argued that from 1993 to 2010 about 75 industries in the country were left to private ownership, of which 31 were later closed.

In the briefing, the researchers made a seven-point recommendation, including taking necessary steps to reduce the losses by increasing the production capacity by immediately opening the mills, identifying those involved in corruption and taking legal action against them, and modernising the equipment of the mills.

Prof Anu Muhammad, Barrister Jyotirmoy Barua, sugarcane farmer Ferdous Imam and former jute mill worker Abdul Halim Mithu also spoke at the programme.

Sarbojonkotha, a journal on politics, economics and society, organised the press conference.

The government recently closed down 25 state-owned jute mills due to huge loss in operating those factories. The fates of around 50,000 workers working in those mills have become uncertain.

The government has also decided to close down six out of 15 government-run sugar mills to “reduce the amount of losses”. Around 3,000 workers are working in the six mills.

While placing the research paper, Maha Mirza said not only jute farmers, but the local economy of an entire region is tied to the jute mills in Khulna.

“We have seen that as a result of the closure of jute mills, many grocery stores, hotels, furniture shops, clothing shops and many other small businesses in the industrial area are under threat today,” she added.

Presenting the research report on sugar mills, Moshahida Sultana said, “The rate of sugar extraction from crushing sugarcane is comparatively much lower at 6% to 8% in the country whereas in India or Brazil it is 12% to 14% per tonne.”

Extremely low rates of sugar extraction are eventually added to the additional cost per kg of sugar production in Bangladesh.

Prof Tanjimuddin said, “Losses of mills are considered only with financial calculations. The more important social contributions at the local level of state-owned mills are not recognised. Education, medical care, and housing for workers’ families in state-owned jute mills and sugar mills ensure their human and social development.

“Section 32 of the Labour Act clearly states that a worker cannot be evicted from their residence without their dues being cleared. But we see that the government itself is violating the labour law,” said Jyotirmoy Barua.

In his speech, Prof Anu Muhammad said, “When eco-friendly industries are being encouraged all over the world, jute industries with huge potential are being shut down in Bangladesh through coercion, deception and lies.”

Sugar industries are being destroyed paving the ways for importing sugar for the interest of the businessmen, he added.