With food grain production this year exceeding expectations, jute mills are finding it difficult to cope with the increased demand for jute bags by government procurement agencies, even as another strike by the mill workers threatens to cripple the industry.
According to government estimates, for kharif crop during 2008-09, the area sown under rice was 361.46 lakh hectares as on first week of September 2008, compared to 345.45 lakh hectares during the corresponding period of the previous year. The area sown under rice was 361.46 lakh hectares compared to 345.45 lakh hectares last year.
However, in the case of jute, area sown was 7.37 lakh hectares, compared to 8.26 lakh hectares last year.
According to Hrishikesh Shroff, president, Gunny Trades Association, in September alone the the Food Corporation of India (FCI), along with the food grain procurement agencies of Punjab and Haryana, had placed orders three lakh bales of B Twill jute bags, against about one to one and half lakh bales on an average every month.
For the period between June to October this year the demand for jute bags by the procurement agencies was 11 lakh bale. In 2007-08, for the entire year, government procurement was 15.92 lakh bales.
Meanwhile, this year also the government has decided for 100 per cent reservation of jute bags in food grains and sugar packaging.
According to Shroff, the mills were in a position to meet the demand, adding, the workers were once again threatening to go for a strike on issues related to wages, dearness allowances and settlement of dues.
