Licence for jute trading to be made mandatory
02 February 2015, Nirapad News: The government will incorporate some new provisions into the proposed Jute Act, 2015 that include taking mandatory licence for jute trade and allowing government to supervise the sector, an official said.
The Ministry of Textiles and Jute (MoTJ) has already prepared the draft Jute Act, 2015. However, the proposed draft law will allow the farmers to sell their raw jute without taking licence.
The Jute Act, 2015 will come into effect after the abrogation of the Jute Ordinance, 1962 and the Jute (Amendment) Ordinance, 1983, the official said.
The proposed law will give the government the authority to formulate guidelines and their implementation for the expansion of jute trade in the internal and external markets.
Besides, the proposed law empowers imposition of financial penalty up to Tk 25,000 along with the prime punishment by a first class magistrate/ executive magistrate if anyone is found guilty violating the law. The MoTJ is now preparing the summary of the draft law and will send it to the cabinet division next week for approval by the cabinet.
“We are now preparing the summary of the draft law (Jute Act, 2015). We hope we will be able to send it to the cabinet division next week for approval,” joint secretary (Jute-2) of the MoTJ Nasima Begum told the FE Sunday.
Once the Jute Act, 2015 comes into effect then it will help boost the activities of Bangladesh Jute Mills Corporation (BJMC) which is under the MoTJ. Besides the private sector will also be benefited under the proposed law, insiders said.
BJMC exported 85,133 tonnes of jute goods and earned over Tk 6.28 billion during the fiscal year (FY) 2013-14. It sold jute goods over 2.9 million tonnes worth Tk 4.13 billion during the same fiscal.
The BJMC has fixed a target to earn Tk 20 billion through export and local sale of jute goods during the current fiscal (2014-15). Till February of the current fiscal 1,13,200 tonnes of jute goods was exported to different countries and Tk 8.75 billion earned. It also sold 35,100 tonnes of jute products in the internal market and cashed Tk 3 billion, director (Marketing) of BJMC Babul Chandra Roy told the FE Sunday.