With over a dozen jute mills closed in West Bengal and thousands of workers out of job, Trinamool Congress Rajya Sabha MP Sukhendu Sekhar Ray and the Indian Jute Mill Association ( IJMA), an association of manufacturers, have approached the Centre seeking intervention so that prices of raw jute are revised and the mills resume operation.
Mr. Ray on April 18 had written to Union Minister of Textiles Piyush Goyal and Union Minister of Agriculture Narendra Singh Tomar.
Mr. Ray pointed out that as per the Commission for Agricultural Cost and Prices (CACP), 2022–2023, the overall jute scenario is very discouraging with production becoming stagnant for five years and a decline in acreage and supply by 3% and 11 % respectively.
“In view of this alarming situation, the entire industry is on the verge of collapse endangering the lives of 3 crore people engaged in this sector, in spite of the fact that jute has been placed very high in the whole sale index of commodities,” the MP said. Mr. Ray pointed out that 15 mills are closed in the State and about 60,000 are out of work.
Mr. Ray said the “catastrophe is because of the high–handed decision of the Jute Commissioner to fix the ceiling price at ₹6,500 per quintal. Instead of searching for a solution, the Jute Commissioner, for the past few months, has been engaged in a legal battle with the industry. The State government requested the Commissioner to raise the ceiling to ₹7,200 per quintal“. The price of raw jute is fixed by the Commissioner and almost 90% of the mills’ produce is bought by the government for packaging of foodgrains.
In the letter addressed to the Union Minister of Agriculture, the MP pointed out that the “stock to user [SUR] has fallen by 84% and jute yield is stagnant for five years. There is 70% shortage of credible seeds needed for robust cultivation”.
In a letter addressed to Upendra Prasad Singh, Secretary Ministry of Textiles, the IJMA has pointed out that “production of jute products has declined by over 25% since September 20, 2021” and this has also led to “loss of employment of over 27,000 people working in the mills”.
In the letter dated April 18, the IJMA pointed out that over the past few months the Calcutta High Court had passed two orders after hearing the Jute Commissioner on February 22 and March 15, whereby “directions were given to the Jute Commissioner to make available raw jute at the notified price and take steps against traders/persons who are responsible for selling raw jute at a price exceeding that notified by him” respectively.
The IJMA has alleged that the “Jute Commissioner has completely lost control of the situation” and in spite of the Calcutta High Court orders the “the official has not been able to make available raw jute at the notified price even one single day. He has also not been able to take any action against the traders for selling raw jute at above the notified price...”.
