(MENAFN- KNN India)
New Delhi, Jul 16 (KNN) The Jute Balers' Association has formally addressed Union Minister Giriraj Singh, highlighting concerns over unregulated raw jute imports from Bangladesh and their adverse impact on domestic suppliers and farmers.
The association claims that despite a bumper crop in the 2023-24 season, which sufficiently met domestic demand, jute mills continue to import large quantities from Bangladesh.
Reports indicate that in June 2024 alone, imported jute accounted for 22 per cent of the total supply, amounting to 73,000 bales out of 334,000.
This influx of imports, coupled with an opening stock of 3 million bales as of July 1, 2024, and an impending new crop, has led to a sharp decline in prices.
Current market rates have fallen below the minimum support price (MSP) of Rs 5,335 per quintal set for the 2024-25 season, with prices dipping under Rs 5,000 per quintal.
The situation has created a complex set of challenges for the industry. Mills are facing liquidity issues, resulting in delayed payments to suppliers.
This has led to reduced market purchases by mills, further depressing prices and increasing farmer dependency on MSP.
The crisis has already resulted in the closure of six mills, with accumulated dues reaching approximately Rs 1,400 crore.
The Indian Jute Mills Association has echoed these concerns, calling for both central and state government intervention to address the crisis.
Industry stakeholders also point out that while there is a prohibition on using imported jute for food grain packaging, the influx of cheaper, low-grade jute from Bangladesh has exacerbated the situation.
In response to these developments, a meeting between industry stakeholders and the ministry is scheduled for later today.
The Jute Balers' Association, with its 115-year history in the sector, has urged for immediate action to curb unregulated imports and address the issue of reduced orders, emphasising that 'the future of millions of livelihoods is at stake.'
As the situation unfolds, the government's response and potential policy measures will be crucial in determining the future trajectory of India's jute industry.
The outcome of today's meeting may provide insight into the steps that will be taken to address the concerns raised by the industry and stabilise the market for this important agricultural commodity.
(KNN Bureau)
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