Organizing a press meet in Biratnagar on Monday, Nepal Jute Industries Association (NJIA) also warned that all the mills would be compelled to shut operation if the government continued to turn deaf ears towards their demand.[break]
According to the association, these mills are employing more than 10,000 persons. Investment of Rs 80 million has been made in these mills.
Speaking at the press meet, Rajkumar Golchha, rued the government’s apathy toward their demands. He also said the country’s jute industry is suffering from severe financial crisis due to prolonged power-cut, government’s apathy toward jute farming and excessive wage of workers as compared to the wage being offered by mills in neighboring countries.
The association has demanded the government to provide 70 percent discount on electricity tariff and 10 percent grant on export of jute products. They have also demanded the government to continue VAT and custom exemption facility on the import of spare parts and provide them diesel at concessional rate.
“It’s high time the government formed Jute Board for the development and promotion of jute farming,” said Golchha.
He also said jute mills of Biratnagar are not in a position to compete with jute industries of India and Bangladesh. Woes of jute mills compounded after the government hiked minimum daily wage of workers to Rs 231 from mid-May. Daily wage of workers in Indian jute mills is just about Rs166, while those in Bangladesh are getting around $6.
Jute entrepreneur Champalal Rathi said Nepali jute mills cannot compete with jute mills of India and Bangladesh that get different subsidies from the government.
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