Jute bag supplies drop 87 per cent

The ongoing indefinite strike in the 59 jute mills of West Bengal has resulted in a lowering of jute bag supplies by about 87 per cent, according to a note prepared by the Union textile ministry.

The note said, 18 mills ( 11 outside West Bengal and 7 in the state) that are operational and supply B.Twill can produce upt o 20,000 bales of such products per month.

Mills have supplied a maximum of 1.6 lakh bales in a month.

The ministry of consumer affairs, food and public distribution is apprehensive whether the mills will be able to meet the demand from states and jute bag procuring agencies during the Kharif (KMS) and Rabi (RMS) marketing seasons of 2008-09 and 2009-10. According to the textile ministry note, during KMS there is still a requirement of 1.32 lakh bales and the projected requirement for RMS 2009-10 is around 9 lakh bales. As the optimum capacity of jute mills is 1.75 lakh bales per month it may not be possible to supply the entire amount by May 31, 2009.

 

The textile ministry plans to make alternate arrangements in response for packaging material for supplies for RMS 2009-10.

It stated that relaxation of 80,000 bales granted to the Punjab government could also not be utilised by November 30, 2008.

The order could be extended for another six months to cater to the contingency of RMS 2009-10. Because of the strike in West Bengal, industry failed to meet deadlines for balance supplies needed for the Kharif season.

As on date, the backlog was 85,000 bales for Kharif season.

Additional demand of 60,000 bales was likely to be raised by the UP government. Industry was not in a position to meet the additional demand of 1.45 lakh bales in respect of KMS 2008-09 on account of the strike. In respect of RMS 2009-10, the requirement of 9 lakh bales, to be supplied by April 2009 could be hit too.

The ministry plans to provide relaxation to procurement agencies where a major quantity of the indent had not been manufactured as an immediate end to the strike in West Bengal appeared unlikely. The indenters were Haryana at 12054 bales, FCI at 26252 bales, UP at 12694 bales and Chhattisgarh at 31640 bales, making a total of 82,640 bales