The government has no plan to establish new state-owned jute mills and will instead focus on encouraging private-sector participation to revive and expand the country’s jute industry, Textiles and Jute Minister Khandaker Abdul Muqtadir told Parliament on Monday.
Responding to a written question from Jatiya Sangsad member Md Mostafizur Rahman Babul during the parliamentary session chaired by Speaker Hafiz Uddin Ahmed, the minister said the government’s priority is to create an investment-friendly environment and provide policy support for private investment in the jute sector.
He said the government is currently implementing a project titled “Production and Expansion of Advanced Technology-Based Jute and Jute Seed” to boost jute cultivation and restore the sector’s traditional strength. Although the project is scheduled to end on June 30, a similar initiative is being considered under the revenue budget to continue supporting jute farmers.
Regarding closed jute mills, the minister said production at 25 mills under the Bangladesh Jute Mills Corporation (BJMC) was suspended on July 1, 2020, under a government decision. Subsequently, 20 of those mills were selected for operation under private management through lease agreements.
According to the minister, lease agreements for 14 mills have already been completed, while nine of them are currently in operation. The leasing process for the remaining six mills is at different stages, including final proposal evaluation and fresh expressions of interest.
He expressed hope that all leaseable mills would be brought into operation under private management by December 2026 in line with the government’s reform agenda.
The minister added that five mills remain outside the leasing process. Of these, three are located within city corporation areas, while two are entangled in legal disputes and court cases.
Reiterating the government’s position, Muqtadir said the revival of the jute industry would be driven by private-sector investment rather than the establishment of new state-owned mills.
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