Centre takes hard view on jute industry

The Centre has taken a hard view of the non-compliance of the jute industry as they have failed to meet the quota fixed for them during the Ravi season and decided to ignore their plea for the same in the coming Khariff season. In a meeting held at Union textile ministry a few days back, the office of the Jute Commissioner apprised textile minister Dayanidhi Maran about it. According to the office of the Jute Commissioner, 51 jute mills failed to supply jute sackings to the Food Corporation of India during the Rabi season.

Earlier, the jute industry lobbied hard with the Union government highlighting their problems due to shortage of government orders.

Accordingly, the industry was given order to supply 1, 04,000 bales of sackings for the Rabi season, which they failed to comply with.

Reports reaching the Indian Jute Mills Association (IJMA), the representative body of the jute industry, from the Union textile ministry indicate that the government has refused to issue fresh order to jute industry and asked them to supply the sackings at a price fixed during the Rabi season.

The IJMA officials admit that the fault lies with the jute mills as most of them ignored the government order and sold their product in the market as that fetched a better price.

Now, the industry, which is very much depended on government for its market, is in a fix.

The going price of raw jute in the off season has peaked to Rs 31,000 per tonne, and the ongoing price of the sackings is Rs 47,000 per tonne.

But the government is asking the industry to supply the sackings at the old price of Rs 31,000 per tonne. Moreover, the government has refused to call any meeting to fix the price and quota of jute sackings for the coming Khariff season.

According to IJMA sources, the jute industry, which experiences periodic crisis, is likely to face another one soon if the government continues to harden its attitude towards the industry. On Wednesday, Delta Jute Mill in Howrah suspended its work causing serious disturbances in that area.

The irate workers put fire to a godown full of raw jute. According to IJMA officials, the industry which faced a 61-day strike in 2009, might be in for further trouble if the present impasse with the Union government continues.

But one thing that made the industry happy is the decision taken by the Union textile ministry to form a Jute Board.

The proposed Jute Board, where the industry and the workers will have adequate participation, will eventually make the Jute Commissioner's office redundant.