A consortium of jute suppliers has approached Union Minister Giriraj Singh, claiming that
raw material imports from Bangladesh, whether directly by mills or through intermediaries,
have severely impacted the industry and its farmers. In a letter to the textile minister, the Jute
Balers’ Association highlighted concerns over the “unregulated import of raw jute” from the
neighboring country, leading to a severe payment crisis for domestic suppliers due to “low
orders” for mills. The Indian Jute Mills Association has also expressed alarm and requested
intervention from both central and state governments to mitigate the crisis.
An official announced a scheduled meeting between industry stakeholders and the ministry
later on Monday. The Jute Balers’ Association, a key player in the sector for over 115 years,
emphasized the critical issues threatening the industry’s viability. Despite a bumper crop year
in 2023-24 with sufficient domestic supply, mills imported large quantities of raw jute from
Bangladesh, with 73,000 bales imported in June 2024 alone, accounting for 22% of the total
334,000 bales.
As of July 1, 2024, there was an opening stock of 3 million bales of raw jute, and the new
crop was approaching. These factors led to prices falling below the minimum support price
(MSP), with prices dropping below Rs 5,000 per quintal against an MSP of Rs 5,335 per
quintal for the 2024-25 season.
Although there is a restriction on using imported jute for food grain packaging bags, the
influx of cheaper and lower-quality jute from Bangladesh has worsened the crisis. Mills
facing liquidity issues have delayed payments to suppliers, hindering their ability to buy fresh
jute from farmers, creating a vicious cycle of dependency on MSP-linked jute and further
depressing prices. Six mills have already closed, with current dues amounting to about Rs
1,400 crore, including Rs 400 crore in legacy dues.
The association has called for stringent action against illegal jute imports and a commitment
to lawful practices, stressing that “the future of millions of livelihoods is at stake” and urging
immediate government intervention to address the unregulated imports and declining orders.
