The interim administration has decided in principle to halve the jute sector workforce to make the loss-making state-run jute mills commercially viable. The decision, taken at a special meeting with chief adviser Fakhruddin Ahmed in the chair and would be implemented in phases, will see a loss of about 20,000 jobs in the sector. The jute adviser asserted that the decision would put the jute sector back on track and help it regain its lost glory. The meeting, held at the Chief Adviser’s Office, also discussed a proposal to form a taskforce with officials from the ministries of finance and commerce for ensuring constant monitoring of the mills to implement the government’s decision smoothly.

Jute workers and trade union leaders described the decision as a fresh conspiracy to destroy the jute sector. The government’s move, if implemented, would throw more than 20,000 jute workers and employees out of jobs under a voluntary retirement scheme by December this year. At present, there are 22 jute mills under the state-owned Bangladesh Jute Mills Corporation with over 43,000 workers and employees on its pay roll. The mills now owe jute sellers about Tk 136 crore and they were not getting enough funds from the finance ministry for purchasing raw jute, said ministry sources.

Earlier, the textile and jute ministry submitted a comprehensive plan to the chief adviser, proposing 50 per cent cut in manpower of state-run jute mills against the backdrop of huge fund crunch and mismanagement in the sector. The proposal includes involvement of the finance ministry, commerce ministry and the Chief Adviser’s Office to bring about reforms and ensure smooth operation of the mills, which are now reeling under huge losses due to irregularities and mismanagement, said a senior official.

The government decided to privatise a number of jute mills in Khulna, Chittagong and Sirajganj, privatisation officials said. The jute ministry has already sought Tk 382 crore from the finance ministry for payouts of around 9,000 workers and employees of some mills an additional sum of Tk 300 core will be required to run the rest of the mills.