Inferior quality raw jute supplies may hit govt procurement

Abundance of raw jute is bound to impact eminent domain of value added diversified products

The arrival in abundance of inferior grade raw jute (TD-6 and below) in the market has triggered concerns within the jute industry with respect to meeting the requirement for government procurement.

Although there is a bumper crop size of raw jute of 10 million bales (one bale is 180 kg), 50 per cent of it belongs to the inferior grades. To compound the woes of the industry, only 4 million bales has arrived in the market, the balance is still lying with the stockists. Over production of inferior quality of raw jute has distorted the market.

"There is a pronounced mismatch in production and consumption patterns. This is enough to disturb the normal supply of government B Twill bags because inferior grades are unsuitable for manufacture of 580 gm light weight jute bags required by the government," said a leading jute mill owner.

Alarmed at the situation, the jute industry has drastically reduced purchase of the inferior grades being dumped into the local markets. Though the industry is committed to meet the requirement of B Twill jute bags as mandated by the government, it feels hamstrung due to flooding of inferior grades of raw jute into the markets.

However, with 40 per cent of the raw jute produced yet to foray into the markets, the industry is compelled to buy the available inferior grades and use them in manufacture of sacking bags, in violation of the productivity and consumption norms spelt by the National Jute Board (NJB).

The abundance of raw jute is also bound to impact the eminent domain of value added diversified products.

Meanwhile, the demand to supply 580 gm jute bags has not only hurt the jute farmers but also thrust an artificial crisis on the industry, facilitating the entry of high density poly-ethylene (PE) and polypropylene (PP) bags.

In the absence of proper buyers, the jute farmers are forced to go for distress sale, bearing a loss of Rs 200 per quintal.

As of now, there are no definite raw jute development policies or advanced I-Care programmes to shield the farmer or improve the quality of raw jute. The Jute I-Care project aimed at improving quality of raw jute and diversification of finished jute products, needs government outlay of Rs 750 crore over the next four years, as per industry estimates. The agro-mini mission modes under the Jute Technology Mission has been closed since March 2013.

To overcome the crisis, the jute industry has sought the intervention of the Union textiles ministry, calling for the introduction of heavy weight jute bags. Such bags can consume lower grade raw jute and potentially salvage a portion of the lost market and bail out the farmers in distress.