Report - Closure of a Jute Mills to Avoid Losses

Two More Jute Mills Shut Down

Hasan Mahmud, Mymensingh, 22 February: Two of the government jute mills have been declared closed from the next week amid wide criticism and protests. The government sources said that Jubili Jute Mills and Popular Jute Mills in Khalishpur are going to be closed from Sunday as the two mills have incurred loss of about Tk. 400 crore in last four years.

As jute markets are shrinking both at home and abroad, the mills could not pay off the farmer's money and buy jute for this year. The government kept running these two jute mills by giving special budget allotment, but due to excessive pressure from World Bank, the government decided not to run the mills under government management.

It is estimated that due to closure the jute productions in the country will get another setback, and about 600 workers will be unemployed. Workers and political parties protested government decision and called for earning opportunities for the workers before closing down the mills.

They said that the closure would cause socio-economic problem in the region and affect jute cultivation and industrial growth in the country.