Lest we forget about it, the jute enterprise became the lifeblood of our economy for several decades and is still one of the mainstays of our rural financial system even today. About 15 million farmers are involved in developing this coins crop, and numerous million greater of our population, perhaps an equal number, are involved with its processing, transportation, conversion, and so on. Be that as it could, the enterprise has long passed off course because of undue interference and discriminatory rules made using the coverage- makers sometimes and additionally for motives past the control of the economic operators. To understand the cutting-edge scenario in the enterprise, one should look at the background of the jute industry and the activities that occurred over the last several decades.
While this part of u. S. A. Turned into a hinterland in the Nineteen Forties where we produced the handiest uncooked jute, all fiber processing was performed in the jute generators in gift India.
The then Government of Pakistan realized that it might be higher to add value to the fiber and export of jute items to earn foreign exchange for the kingdom instead of exporting handiest the fiber. As such, the Government started to promote putting in jute mills as a ways back as in 1951 in this a part of us of a.
At a time whilst Pakistan changed into going via a period of rapid industrialization, the Govt. Of India decided to devalue her currency. The economists of that period realized that if the Pakistani Rupee changed into also devalued at the same rate as that of India, the rapid industrialization system that use of a became experiencing might be retarded.
Therefore, the Govt. It came up, as early as in 1959, with a unique technique of compensating the industry for the overvaluation of Pakistani Rupee within the form of bonus vouchers, a scheme cautiously crafted where the customers paid for the overvaluation of the foreign money, and there was no burden on the countrywide exchequer.
By the cease of the 1960s and early Seventies, about 30 million human beings were already concerned without delay or not directly inside the quarter. By 1972-seventy three, the enterprise was already producing about four hundred and fifty thousand metric lots of jute items incomes approximately US$ 195 million.
In the yr 1971-72, the Govt. Of Bangladesh adopted a coverage of nationalization and, as such, beneath a Presidential Order, nationalized all predominant industries along with the feasible, vibrant, and financially healthy jute industry without considering whether the mills were owned by Bangladeshi nationals or in any other case.
After a duration of approximately II years of operation below the Bangladesh Jute Mills Corporation (BJMC), incurring huge losses and crippling the enterprise, the Government of Bangladesh followed coverage of privatization in which little over one 0.33 of the loss-making jute enterprise, which changed into at the start owned predominantly using Bangladeshi nationals, have been de-nationalized or privatized inside the yr 1982-eighty three.