Industry seeks curbs on raw jute exports

Faced with the problem of rampant exports of raw jute to countries such as Pakistan, China and Vietnam at a time when jute mills in India are starving of the fibre crop, the industry has urged the Union textiles ministry to impose immediate curbs on raw jute exports on the lines of the existing restrictions in raw cotton exports.

The Indian Jute Mills Association (IJMA), the apex body, has sought intervention of the Union textiles secretary, Rita Menon, to restrict raw jute exports, ease prices and make the fibre available to jute mills in the country.

In a letter to the Textiles Secretary, Manish Poddar, IJMA chairman has sought suspension of all mandatory pre-shipment registration of raw jute and jute waste exports, if any, for an indefinite period.

The association has also demanded the imposition of all possible non-tariff barriers.

Besides, IJMA has suggested that a de-hoarding exercise should be undertaken by the textiles ministry in collaboration with the Jute Commissioner’s Office, Jute Corporation of India and the West Bengal government to make the fibre crop available to the jute mills and overcome the problem of artificial shortage.

According to industry estimates, approximately 73,000 bales of raw jute were exported during April-October 2009 to countries in Asia, Africa and Europe.

This has increased further. IJMA has alleged that clandestine exports are taking place through various ports in the country and also through the porous borders of Nepal and Bangladesh.

What has irked the industry is the fact that the artificial shortage of raw jute has been created at a time when the production in the country stood at 11 million bales in 2009-10.

Despite a favourable crop production, the jute mills in the country have been grappling with shortfall of raw jute due to spurt in exports and hoarders who have engineered an artificial raw jute crisis.

Being starved of raw jute, many jute mills have already started forced production cuts and the situation may lead to subsequent shut down of the mills and job losses if normal jute supplies are not restored.