Bengal jute industry hit by fund crunch as banks set stringent credit norms

The jute industry in West Bengal is facing difficulties due to dearth of working capital as banks have allegedly tightened the lending standards for the sector, officials said.

The lenders have been seeking "clear land papers" from mills' owners for extending loans, they said.

At present, three major jute mills remained closed due to working capital crunch, industry sources said.

"Lack of banking credit has hit several jute mills in the state. Mill owners are not getting adequate credit to run their businesses. Banks make lending norms more stringent for land titles, which is used as collateral," a jute mill promoter told PTI