The Bangladesh Jute Mills Corporation (BJMC) has once again sought a large amount of funds from its government to make its ailing mills profitable. The request came at a meeting between the textiles and jute ministry and Finance Minister AMA Muhith where the high officials of BJMC were also present.

The request of about Tk 1,800 crores is for paying staff salaries and various dues and purchasing jute. According to Humayun Khaled, chairman of BJMC the prospects for jute have expanded and its demand on the market is on the rise. About 5,500 employees have retired in the last few years and BJMC is unable to provide their dues, he said. However, no decision on the matter was taken at the meeting. Muhith has directed the finance division and the textiles and jute ministry to hold separate meetings to take stock of the situation and make recommendations.

According to finance ministry official, only after finding a way to make the 25 mills profitable would a decision on paying their dues would be taken. Since 2009, BJMC has been given more than Tk 6,000 crores for buying jute, paying dues and staff salaries. The funds were given under various conditions such as turning the jute mills into holding companies.

However, this time, funds will be provided only after the mills meet the conditions. In the last nine years, the mills suffered losses every year, save for one, in fiscal 2010-11, when a slight profit of Tk 14 crores was made. From fiscal 2006-07 onwards, they made losses of Tk 66 crores to Tk 700 crores each year.