Industry body calls for policy intervention to aid 'struggling' jute industry

Kolkata, Jun 19 (PTI) The Indian Jute Mills Association (IJMA), in a representation to the government, has called for policy intervention to help the “struggling” sector tide over challenges, including declining demand for jute bags and its detrimental impact on workers and farmers, a senior official said. The industry body has written to Consumer Affairs, Food and Public Distribution Minister Pralhad Joshi in this regard.

"In the letter sent on Tuesday, the IJMA highlighted the critical role the jute industry plays in providing packaging materials for food grains procured by the Food Corporation of India (FCI) and State Procuring Agencies (SPAs).

“Despite the industry’s readiness to meet the 100 per cent requirements for jute bags during the kharif and rabi seasons, the demand has sharply declined from 38-39 lakh bales annually in 2021-22 to an expected 30 lakh bales in 2024-25," former IJMA chairman Sanjay Kajaria told PTI.

The drop in demand has led to surplus capacity, forcing mills to cut shifts and shut down operations, resulting in massive job losses, he said.

The ripple effect has also impacted jute farmers, who are struggling to sell their produce at the minimum support price, Kajaria said.

"To boost demand, IJMA recommends that all imported wheat, whether through government deals or private trade, should be packaged in jute bags as per the mandatory provisions of the JPM Act, 1987," Chairman Raghavendra Gupta said in the communication to the minister.

It has also suggested reverting to the use of new jute bags for packaging paddy instead of second-hand bags.

The IJMA said despite a mandate requiring 20 per cent of sugar to be packaged in jute bags, compliance has been poor, and called for stricter enforcement of the norms.

Introducing and implementing these changes will help stabilise the jute industry, secure jobs and ensure better prices for farmers, IJMA officials said.

The jute sector employs nearly 3.5 lakh workers in organised mills, and about 40 lakh farmers are engaged in growing the cash crop. PTI BSM RBT