A SURVIVAL STORY OF JUTE & BJMC

BJMC

Till 2008 BJMC AND THE JUTE SECTOR, as a whole had been facing crucial time and fighting for its survival, absence of an effective Jute Policy, Lack of strong commitment to run the Jute Sector by the past Govts, International conspiracy to ruin the Jute Sector, all played Vital role for the fatal consequence.

After Independence, all the jute mills were nationalized and placed under BJMC, at that time BJMC with 82 jute Mills had to face serious odds in respect of running the mills properly in absence of efficient management, in respect of marketing jute products all over the world which were captured by Indian & London Mar chants. The the BJMC management and strong marketing department successfully handled the situation and captured most of the international jute goods markets with the most efficient and effective management, BJMC, for the first time, made a profit was TK 22.70 crores. In the year 1982-83 BJMC made a profit of Tk. 17.50 crores and all the rest years no profit was made.

Regarding profit5 of jute miills, there is a misunderstanding and misconception among the people. Most of the people believe that during Pakistan period the jute mills made huge profit and out of those profits they made their fortune and expanded the industry. But there is a gap. Many people do not know that during Pakistani period the jute mills were not profitable but the Govt. made them profitable by providing incentives like Bonus voucher to the extent up to 35% of export value which again were sold the importers at a very lucrative price, In this way the jute mills used to earn about 60% more than their Export value and had on a sound financial footing. in the backdrop of such situation. BJMC had to run the mills without govt. cash incentives or insufficient incentives and as a result BJMC had to incur loss most of the year. 

To avoid the loss and to avoid so called inefficiency of BJMC the Govt.Denationalized most of the mills to private sector. Unfortunately most of all those running mills were shutdown in stead of running efficiently.

In 2009 BJMC had 22 jute mills were under its control and most of them were sick. These mills were made sick due to interference from diffrent authorities, failur to purchase required quantity and right grade of raw jute, lack of efficient and effective management, skilled manpower, proper maintanance of machineries, lack of efficient marketing, reaserch, quality control etc.

Moreover dew to absence of effective jute policy and govt. strong willforce to keep alive the jute sector it was facing natural death as govt. was unwilling to finance the losing sector against the will of powerful donor agencies. The interest of millions of farmers, traders, workers and all those directly or indirectly related to this sector was totally ignored and the past govt.s were donor's prescription to shut down the jute industry.

Jute

However in 2009, the present govt. came into power and saved BJMC and Jute. The new govt had the election manifesto and commited to revive the jute sector and govt overwhelming support from millions of jute mills workers and members of jute family. To saave jute sector the govt entrusted the responsibility of Jute Ministry to one of the senior most members of cabinet who was commited , highly experienced and efficient and took it as a challange. He immediately reshuffled BJMC's management and formed BJMC Board with highly technical, long experienced and efficient jute people instead of bureaucrats. The management took oath and engaged all out efforts to save BJMC and make it a profitable organization. The Jute Ministry extended its unconditional full support to BJMC to achieve its goal.

But the task to salvage the drowned ship BJMC was near to impossible. The condition of the jute mills under BJMC was simply distressed. Having no fund from govt. or Bank, the mills could not purchase raw jute, spare parts of the machines, could not pay the wages of the worker, salaries of the staff officers. Some mills had wages outstanding for 40 weeks, salaries for 9 months. The jute suppliers had dues to mills more than 150 corers and they stopped supplying jute on credit. The suppliers of machineries and other materials also stopped supply for outstanding dues. As a result mills were about to be closed. In such a critical situation, Govt, came forward and make payment of almost all the outstanding dues of workers, staff, jute suppliers and others BJMC took all initiative to make products friendly environment in the mills.