jute-industry-in-crisis-over-bangladesh-s-imports

The Jute Balers' Association has written to Union Minister Giriraj Singh, raising alarm over the adverse impact of raw material imports from Bangladesh on India's jute industry and farmers.

 

The association highlighted that unregulated imports, either directly by mills or through third parties, have led to a severe payment crisis for domestic raw jute suppliers.

 

In a letter to the textile minister, the Jute Balers' Association expressed concerns over the influx of raw jute from Bangladesh, which has resulted in low orders for Indian mills. The association warned that this situation has created a significant payment crisis for domestic suppliers.

 

The Indian Jute Mills Association (IJMA) has also echoed these concerns and has sought intervention from both central and state governments to address the crisis. An official stated that a meeting between industry stakeholders and the ministry is expected later on Monday to discuss the pressing issues.

 

The Jute Balers' Association, which has been a pillar of the sector for over 115 years, detailed the critical challenges threatening the industry's survival. "Despite a bumper crop year in 2023-24, where domestic supply was sufficient, mills have continued to import large quantities of raw jute from Bangladesh. In June 2024 alone, 73,000 bales, or 22 per cent of the total 3,34,000 bales, were imported," said Pulak Jha, secretary of the Jute Balers' Association, in the letter.

 

The use of imported jute in making bags for food grain packaging is barred, but the "influx of cheaper and low-grade jute from Bangladesh has exacerbated the crisis," said an industry stakeholder. 

 

Mills are facing liquidity issues, leading to delayed payments to suppliers and hindering their ability to purchase fresh jute from farmers.

 

This has created a vicious cycle, where mills are obligated to buy MSP-linked jute, which reduces their market purchases, further depressing prices and pushing more farmers towards MSP dependency.