No plans to establish new state-owned jute mills, minister tells parliament

Textiles and Jute Minister Khandakar Abdul Muktadir today (15 June) told parliament that the government has no plans to establish new state-owned jute mills in the country. 

Instead, it aims to encourage private sector participation in the industry through policy support and the creation of an investment-friendly environment.

The minister disclosed the information in response to a written question from Jamalpur-3 lawmaker Md Mostafizur Rahman Babul.

In his question, Babul wanted to know whether the ministry had any plans to increase jute production, reopen closed jute mills and establish new mills to revive the heritage of the country’s jute industry, once known as the “golden fibre” sector.

Responding to the question, the minister said that nine of the 25 mills under the Bangladesh Jute Mills Corporation (BJMC) are currently operating under private management. He expressed hope that the remaining mills would also be reopened under private management by December 2026 in line with the government’s 31-point programme.

Muktadir said the government is implementing a project titled “Production and Expansion of Advanced Technology-Based Jute and Jute Seed” to increase jute production and help restore the industry’s past glory.

The project is scheduled to conclude on 30 June. The government plans to continue similar activities under a new project financed through the revenue budget, he added.

The minister said that production operations at all 25 BJMC mills were officially suspended under a government decision on 1 July 2020, while 20 mills were earmarked for reopening through lease agreements under private management.

As part of that initiative, lease agreements have already been signed for 14 mills, of which nine have resumed operations.

The process of leasing the remaining six mills is underway. Final proposals have been invited for three mills, the evaluation of expressions of interest is ongoing for one mill, a call for expressions of interest has been issued for another, and leasing procedures for the remaining mill are currently in progress.

Muktadir said the remaining mills are also expected to be reopened under private management by December 2026 in line with the government’s policy directives.

He added that five mills remain outside the leasing process. Of them, three were excluded because they fall under city corporation jurisdictions, while two others remain outside the process due to ongoing legal disputes.

“In this context, the government has no plan to establish new state-owned jute mills in the country. Rather, our goal is to encourage greater private sector participation in the industry through policy support and the creation of an investment-friendly environment,” the minister said.