Jute mills may suspend exports for three months amid supply backlog

Industry has managed to supply only 680.000 bales of the 1.24 mn bales of jute bags that the govt intends to procure this year

Reeling under a supply backlog of 50 per cent, the jute industry has asked mills to stop exports for three months and also suspend supplies to National Agricultural Cooperative Marketing Federation (Nafed) and local vendors.

In the current year, the government has decided to procure 1.24 million bales of jute bags (one bale is 180 kg). Till February-end, the industry has managed to supply 680.000 bales.

“The supply crisis has been engendered by diversion of jute bags to Nafed, food agencies in Tamil Nadu and to local suppliers. The mills are fetching a premium of five to eight per cent