The government has no plans to establish any new jute mills under state management. Instead, the primary objective is to revitalise the industry by encouraging private sector participation through policy support and the creation of an investment-friendly environment.
Textiles and Jute Minister Khandakar Abdul Muktadir shared this information in Parliament on Monday afternoon. The session was presided over by Speaker Hafiz Uddin Ahmad.
The minister was responding to a written query from Md Mustafizur Rahman Babul, Member of Parliament for the Jamalpur-3 constituency. The MP had sought to know if the Ministry had plans to increase jute production, reopen closed mills, or set up new factories to restore the heritage of the “golden fibre”.
In his reply, Muktadir said the government is currently implementing a project titled “Production and Extension of High-Tech Based Jute and Jute Seeds” to boost production. While this project is scheduled to conclude on 30 June, the government plans to launch new initiatives under the revenue budget to continue supporting jute farmers.
Regarding the status of closed factories, the minister informed the House that production at 25 mills under the Bangladesh Jute Mills Corporation (BJMC) was suspended on 1 July 2020, following a government decision. Subsequently, it was decided to reopen 20 of these mills under private management via lease agreements.
To date, lease agreements for 14 mills have been completed, and nine of these are currently operational.
Providing an update on the remaining factories, Muktadir noted that the leasing process for the other six mills is at various stages. Final proposals have been invited for three mills, Expressions of Interest (EOI) are under evaluation for one mill, a fresh EOI has been called for another, and the leasing process for the remaining mill is currently underway.
He expressed optimism that the mills would be operational under private management by December 2026, in line with the government’s 31-point agenda.
The minister further clarified that five mills remain outside the leasing programme. Of these, three are located within City Corporation areas, and two are excluded due to legal complications or ongoing litigation.
Reiterating the government’s stance, Muktadir emphasised that rather than establishing new state-owned mills, the government intends to drive the industry’s momentum through the private sector.
