The ‘golden fibre’ tag must prompt govt to bailout jute industry

Not everything seems to be alright in the country, when it comes to the golden fibre, if one goes by the recent developments and upheavals in the sector. The jute industry, more popularly referred as ‘golden fibre’, faces a crisis due to factors like overproduction and diminishing demand for jute bags, particularly those used for packaging of foodgrains.Jute mills in Bengal are estimating a 30 per cent decline in demand of jute bags in 2024-25 amid shortfall of mandatory procurement of jute bags for packing of foodgrains and sugar. Lack of demand for jute bags is resulting in a demand and supply imbalance and has forced some jute mills to reduce their shifts or cut down shift hours. Ironically, the new crop has already started to come in but the orders for jute bags in the khariff season is at a shortfall that is in excess of 3.5 lakh bales. The situation worsened in June when orderswere received for only 27,000 bales against the expectations of 2.35 lakh bales for the month.To be precise, the annual demand has plummeted from 38-39 lakh bales in 2021-22 to an anticipated 30 lakh bales in 2024-25, resulting in surplus capacity and job reductions.

For the ongoing Kharif marketing season 2024-25, the industry received orders for only 3.63 lakh bales, a stark contrast to the planned indents of 7.17 lakh bales by June, operating at only 40 to 50 per cent capacity, if industry insiders are to be believed. In contrast, the raw jute crop has touched 90 lakh bales over the last three years.Besides, the sugar industry has not fully complied with mandatory packaging directives, with only seven per cent of production packed in jute bags this season, against the mandated 20 per cent. The jute mills have an assessed capacity of around five lakh bales per month, while the current capacity utilisation in only at around 40-50 per cent.Jute mill unions have already taken it up with the Union labour minister and highlighted concerns regarding production slowdown and the adverse impact on the industry and its workforce.

The state government, on its part, has taken these issues to the Union Ministry of Textiles to ensure stringent monitoring and implementation of the Jute Packaging Materials Act and the Jute and Textiles Control Order. The state government has also indicated its intent to draft a comprehensive representation urging immediate action to mitigate the crisis and ensure the sustainability of the jute industry.

Earlier, jute farmers in the state had expressed their concerns over the falling prices of raw jute, which had, in turn, prompted introspection over the prospects of exploring alternative cash crops to the golden fibre. Quite significantly, there are around 40 lakh jute farmers and four lakh workmen, who are associated with the jute industry in the state. The looming crisis in the sector therefore needs to be addressed and resolved- the sooner, the better.