Jute industry seeks immediate measures for revival

Reeling under the impact of severe demand crisis, jute manufacturers have asked the government to take immediate measures to revive the industry.
The measures suggested include containing imports from Bangladesh, as the neighbouring country offers a 10 per cent cash incentive on the export of jute items, along with restoring the percentage of packaging of foodgrain and sugar into jute bags to 100 per cent.
"Since Bangladesh government has a 10 per cent cash incentive on export of jute products from their country, we are confined to become residual sellers in the global market as Bangladesh manufacturers are cheaper backed by this 10 per cent subsidy," Indian Jute Mills Association Chairman Raghavendra Gupta told PTI.

"Import of jute products from Bangladesh is on the rise which is severely affecting interests of Indian jute industry," he added.
Gupta further said the decline in jute demand has led to closure of some mills while affecting production and has rendered over 1 lakh workers jobless.
The prices of raw jute fibre have declined 15 per cent, even as the harvesting season for new crop of jute begins, he said, adding that the industry fears that if fibre prices keep declining, farmers may shift away from cultivating jute this year on account of low returns.
Gupta has also requested the Textiles Ministry to restore the percentage of reservation of packaging of foodgrain and sugar into jute bags to 100 per cent.

"Under the Jute Packaging Act, the percentage of reservation of packaging of foodgrain and sugar into jute bags is reviewed every year. Currently 90 per cent foodgrains and 20 per cent sugar is mandated to be packed in jute bags. We have requested to restore it to 100 per cent for both as the case was 2 years back," Gupta said.