Bangladesh Jute Association (BJA) Sunday demanded a moratorium for 10 years on bank interest of raw jute exporters. The amount is now worth above Tk 1.0 billion due to sluggish export performance of raw jute. The interest has accumulated with banks over a period of one decade.

The BJA leaders also demanded declaring 'raw jute' as an agriculture product so that exporters get subsidy against their export receipts.

The demands have been placed to Finance Minister AMA Muhith at a meeting between the minister and BJA leaders. The BJA chairman Mahfuzul Hoque led the delegation.

The BJA in its demand said the accumulated interests may be transferred to 'Blocked Account' in banks.

Mr Mahfuz, after the meeting, told the reporters that the Finance Minister had assured them of considering their demand as the raw jute exporters are in dire straits.

"We are in bad shape. If the government does not extend its cooperation in bailing out the raw jute exporters, we will be nowhere," Mahfuzul told the reporters.

The country exported raw jute worth $357 million in 2010-2011. The export earning during July-December of the current fiscal year was $125.37 million, down by 32.11 per cent from the amount of the same period in the previous fiscal year.

The BJA chairman said they have been exporting raw jute for less than the prices at which they bought it from farmers causing huge losses to exporters.

"If the government does not come forward with a rescue package, the raw jute export will no longer exist," Mr Mahfuz told the reporters.

He said the bank interest should be reduced to 10 per cent for jute exporters, which now ranges between 13 and 15 per cent.

Lamenting the government policy, the BJA chairman said the Ministry of Agriculture recognises raw jute as an agriculture product, but the Ministry of Finance does not.

The Daily Financial Express/Bangladesh/ 9th Jan 2012