Diversified jute goods exporters don't get sops: Bangladesh businesses

A recent letter by the Bangladesh Jute Mills Association (BJMA) to the prime minister said the declaration of jute products as agricultural products would lead to the sector earning $8 to $10 billion in foreign exchange.

“So we seek your kind intervention to treat all products made of jute as agricultural products,” the letter said.

Though a February gazette notification announced 282 jute products as agricultural products, the products, in many cases, were not being treated as agricultural products when getting cash incentive against exports, they said.

They also sought intervention from Prime Minister Sheikh Hasina for implementation of the declaration of jute products as agricultural products and ensuring 20 per cent cash incentive on the exports of diversified jute products.

The government has declared jute and jute products as products of the year 2023.

The 282 diversified jute products are yet to be selected for cash incentive as the list has not been sent to the Bangladesh Bank from the finance ministry.

“The entire jute family is in despair regarding production and export of diversified jute products. So, we expect your kind direction so that we can get 20 per cent cash incentive on exporting our 282 diversified jute products,” the letter said.

According to the Jute Act, 2017, products containing 50 per cent jute would be considered diversified jute products, whereas a Bangladesh Bank circular on cash incentive stated products would be considered as diversified jute products if 50 per cent of the total value came from jute.

Fibre2Fashion News Desk (DS)