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Imports from Bangladesh worsen crisis in jute sector

Posted on by darion

Concerns related to jute sector:

  • In June 2024, 73,000 bales were imported from Bangladesh
  • Gold fibre prices have fallen below Rs 5,000 per quintal
  • The association called for strict prosecution of illegal jute imports

Calcutta: A group of jute suppliers has written to Union Minister Giriraj Singh, alleging that import of raw material from Bangladesh, either directly by mills or through third parties, has adversely affected the industry and farmers. In a letter to the textile minister, the Jute Balers’ Association has raised concerns about “unregulated import of raw jute” from the neighbouring country and “low order” to mills, which has led to a serious payment crisis for domestic raw jute suppliers. The Indian Jute Mills Association has also raised concerns over the issue and has sought intervention from the central and state governments to tide over the crisis. A meeting of industry stakeholders with the ministry is expected on Monday, the official said.

The press association, which has been serving the sector for over 115 years, has outlined critical issues that threaten the survival of the industry. “Despite a bountiful harvest in 2023-24 when domestic supplies were adequate, mills continued to import large quantities of raw jute from Bangladesh. In June 2024 alone, 73,000 bales, which is 22 per cent of the total 3,34,000 bales, were imported,” Jute Press Association secretary Pulak Jha said in the letter. “For the jute season, we have an opening stock of 3 million bales of raw jute from July 1, 2024, and the new crop is just around the corner. These factors have caused prices to fall sharply below the minimum guaranteed price (MSP),” said senior officer of Jute Press Association Om Prakash Soni.

The prices of the golden fibre have fallen below Rs 5,000 per quintal, while the minimum guaranteed price (MSP) is Rs 5,335 per quintal for the 2024-25 season, he said. There was a ban on using imported jute for making bags for packing grains, but “the inflow of cheaper and low-quality jute from Bangladesh has aggravated the crisis,” said an industry stakeholder. “Due to the liquidity problems of the mills, payments to suppliers are getting delayed, making it difficult for them to purchase fresh jute from farmers.