“Amid acute scarcity of uncooked supplies and hovering costs, jute millers in West Bengal are in search of intervention from the New Bharatiya Janata Celebration (BJP) authorities to avert large-scale manufacturing unit closures and job losses,” trade sources mentioned. At the least 14 mills within the Hooghly industrial belt have both ceased operations or are going through extreme manufacturing disruption as a result of unavailability of uncooked jute and unviable value, Indian Jute Mills Affiliation (IJMA) officers mentioned.
“With the JBA (Jute Balers Affiliation)’s earlier fee frozen at ₹17,100 per quintal, buying and selling banned and with 10 weeks left for the brand new harvest, factories in West Bengal have been requested to function with out uncooked materials,” mentioned a former IJMA president. Millers hope the brand new authorities will act to “launch residual shares, permit emergency imports and restore viable value corridors to help factories using 200,000 employees,” he mentioned.
Flour millers estimate that round 75,000 employees are already going through “involuntary unemployment” as a result of partial closures, lowered manufacturing and irregular operations at factories situated in North 24 Parganas and Hooghly districts and adjoining industrial areas.
In keeping with trade representatives, the disaster has sharply intensified previously 4 months, with the JBA (base fee for uncooked jute buying and selling) rising from Rs 11,600 per quintal on January 1 to Rs 17,100 per quintal on Might 6, greater than thrice the minimal help value (MSP) of Rs 5,650.
The Jute Commissioner not too long ago ordered merchants and packers to keep up zero stock from Might 5 to extend availability of uncooked jute to mills. However millers and merchants mentioned the transfer made the issue worse.
The official mentioned, “Following the impact of the Jute Commissioner’s Workplace (JCO) ban on transactions, the JBA stopped publishing market costs from Might 7, successfully eradicating the principle reference value out there.”
In a press release to the textile trade secretary, the JBA mentioned commerce restrictions and the dearth of an official reference fee have left the market in “full uncertainty”, leaving factories unable to evaluate procurement prices or guarantee ample provides for his or her operations.
The affiliation additionally warned that the present disaster is not only a seasonal scarcity, however the results of “extended speculative hoarding, distorted market circumstances and authorities inaction”, with costs for uncooked jute far exceeding industrially viable ranges.
“Years of unchecked hoarding have made mills unaffordable. West Bengal has voted for a change of presidency. The jute trade merely calls for that the constructive impression of this alteration be seen on the mill gates by the top of Might,” a jute mill proprietor mentioned, expressing hope that the brand new system would work shortly.
Business gamers claimed that a lot of the out there crop has already been cornered by consumers and bought at early inflated costs, leaving solely about 200,000 to 300,000 bales available on the market on the finish of the season.
JBA member Om Soni mentioned the market had successfully come to a standstill following the suspension of buying and selling exercise and publication of benchmarks.
“The ‘zero stock’ order is a double-edged sword. Whereas the transfer is geared toward releasing hoarded uncooked jute, it has additionally hit factories, leaving suppliers caught between rising prices, unpaid dues and strict stock obligations,” Soni mentioned. P.T.I.. “Our solely request is that the federal government withdraw or prolong the deadline in order that uncooked jute shares can attain the market and struggling mills can keep away from closure for a while,” he added.
“The trade is coming into a ‘harmful vacuum’ the place factories have neither uncooked supplies nor clear reference costs,” mentioned a manufacturing unit official. “With out pressing remedial motion, closures and labor hardship might worsen throughout the jute belt,” they warned.
Mill house owners argued that government-controlled B-twill low cost costs had not stored tempo with the sharp rise in uncooked jute costs, making their operations economically unsustainable. “The distinction between the price of uncooked supplies and the regulated value of jute luggage is additional straining working capital, forcing factories to chop shifts,” they mentioned.
The timing of the disaster deepened the considerations. The jute commissioner’s commerce restriction order is predicted to stay in impact until June 30, with jute’s new fiscal 12 months starting on July 1. “The contemporary crop just isn’t anticipated to reach till close to the top of July, making a provide hole that will make it inconceivable for a lot of factories to outlive,” trade sources mentioned.
Additionally they mentioned the response of the brand new Bharatiya Janata Celebration authorities will probably be intently watched, particularly in mild of its ‘Sankalp Patra’ promise to revive Bengal’s conventional industries. Whereas the jute trade welcomes the change of guard within the state, it has demanded speedy aid on the bottom for factories and employees.
Former IJMA chairman Sanjay Kajaria mentioned the trade anticipated a extra delicate coverage setting underneath the brand new regime. “The jute trade has welcomed the brand new Bharatiya Janata Celebration authorities in West Bengal and appears ahead to working intently with Chief Minister Suvendu Adhikari to stabilize the availability of uncooked jute and defend the livelihoods of the trade,” he mentioned. P.T.I.. He added that the trade’s expectations for the “twin-engine” settlement concentrate on stability and session moderately than confrontation.
“Our expectations for a ‘twin-engine’ authorities are very clear: a predictable coverage framework, well timed session with stakeholders, and swift motion on depot clearance and imports to maintain factories open and employees employed,” Kajaria mentioned.
Business gamers mentioned speedy measures similar to “liquidating residual shares, easing commerce restrictions and facilitating emergency imports from Bangladesh” may present non permanent aid and assist preserve the gates of factories in Titagarh, Badreswar, Hajinagar and Jagaddar open.
issued – Might 18, 2026 1:49 PM IST
