Massive reforms of the state-run jute mills can only save them from incurring ballooning losses, sector insiders suggested at a seminar on Sunday.
At the same time, they recommended rationalising the existing manpower and providing necessary training to the workers and employees of the jute mills to enhance its productivity.
Modernisation of the decades-old mills, run by Bangladesh Jute Mills Corporation (BJMC), is necessary to overcome heavy losses being incurred by these jute mills, they added.
The suggestions came at a seminar titled "The present condition of the jute sector, crisis and prospect," organised by Bangladesh Institute of Labour Studies (BILS) at CIRDAP Auditorium in the city.
Reforms of jute mills, replacement of old machinery and readjustment to the number of employees are badly needed to give the state-run jute mills a new lease of life, said Shahidullah Chowdhury, member of the BILS advisory committee.
The amount of BJMC's total liability has now stood at Tk 25.0 billion as of September this year, he said, adding that 22 mills which are now operating in the country incurred Tk 1.43 billion losses in three months (July-September) of the current fiscal year which was Tk 1.09 billion in the corresponding period of FY'18 (provisional).
State-run mills have 35,992 staff including officials, employees, workers and teachers. Of them, 32,361 are workers while 20,608 workers are permanent, according to the keynote paper presented at the seminar.
It said BJMC-run mills produce hessian, sacking, CBC, yarn, geo-jute, blanket, mat, jute leaf tea, sonali bag and so on.
It also pointed out that privately-run mills under the Jute Spinners Association (BJSA) exported 0.183 million tonnes of products in FY'02 which has increased to 0.566 million tonnes in FY'18.
The factories under Bangladesh Jute Mills Association (BJMA) made shipment of 0.179 million tonnes of products in FY'18 from 0.03 million tonnes in FY'02.
But export of products by government-run mills came down to 0.085 million tonnes in FY'18 from 0.215 million tonnes in FY'02.
The paper mentioned that the government has taken up a project to modernise 18 BJMC-run mills at a cost of Tk 60 billion.
BILS suggested carrying out reforms of only five mills on a pilot basis. It will not be feasible to renovate all the mills at a time, it said.
Centre for Policy Dialogue (CPD) research director Dr Khondaker Golam Moazzem said considering the continuous losses, the government should close down state-run jute mills gradually.
He said the mills should be equipped with modern machinery to enhance productivity with limited manpower following the actual demand for BJMC products.
He said jute mills have a vast land which could be used for limited scale jute mills by the private sector and the rest could be used for other industries to create job opportunities too.
He said the government should raise funds for the welfare of the workers and employees who might lose their jobs.
Workers should get compensation as per the labour law, he said.
Prof MM Akash, who teaches economics at Dhaka University, said if the private sector is doing well, then we should provide necessary policy support to them to make the jute sector more vibrant. BJSA secretary Shahidul Karim said the jute sector has been 'oversaturated' with traditional products like jute yarn, CBC, sackings, hessian and so on. Newer mills should be permitted only for other diversified products, he said.
Mossharraf Hossain Khan, assistant secretary of Jatiyatabadi Paat Sramik Dal, a platform of jute workers, blamed corruption for losses being incurred by state-run jute mills.
He said workers should be compensated properly if the government decides to cut jobs.
BILS vice-chairman Md Mojibur Rahman Bhuiyan chaired the seminar while its executive director Md Zafrul Hasan also spoke on the occasion. BILS placed its five-point proposal for the country's jute sector including cut in structural expenses of state-run jute mills by at least 30 per cent.
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