Lest we forget about, 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 past off course because of undue interference and discriminatory rules made by means of the coverage- makers sometimes and additionally for motives past the control of the economic operators. In order 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 considered to be a hinterland in the Nineteen Forties where we produced handiest uncooked jute, all processing of the fiber 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 as opposed to exporting handiest the fiber. As such, the Government started out to promote putting in of 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 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. Came up, as early as in 1959, with a completely unique technique of compensating the industry for 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 becomes 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 a coverage of privatisation in which little over one 0.33 of the loss-making jute enterprise, which changed into at the start owned predominantly by means of Bangladeshi nationals, have been de-nationalized or privatized inside the yr 1982-eighty three.