Raw jute shortage: West Bengal jute mills seek BJP intervention to prevent closures and job losses

Jute mills in West Bengal reported a worsening raw jute shortage and sharp price rises. Industry sources said the situation risked wider shutdowns and job losses. Millers said they were seeking intervention from the new BJP government. Several mills said they could not secure enough fibre to run regular shifts.

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According to Indian Jute Mills Association sources, at least 14 mills in the Hooghly industrial belt have suspended work. Others reported major production interruptions due to scarce raw jute. Millers said the impact was spreading across nearby industrial areas. They also warned that more stoppages could follow without quick policy changes.

Raw jute prices and Jute Balers Association rate pressure

Industry representatives said the crisis intensified over four months as the Jute Balers Association quotation jumped. The benchmark moved from Rs 11,600 per quintal on January 1 to Rs 17,100 on May 6. They said the level was far above the minimum support price of Rs 5,650. Millers said costs became unworkable.

A former IJMA chairman said mills faced an operational squeeze from multiple directions. With the last JBA rate frozen at Rs 17,100 per quintal, trade banned, and the new crop ten weeks away, mills lacked supplies. The former chairman said mills were being asked to keep running without raw jute.

Millers estimated about 75,000 workers faced involuntary unemployment due to irregular operations. They linked this to partial shutdowns and reduced production. The affected units were reported across North 24 Parganas and Hooghly districts. They said the broader jute workforce was about two lakh workers.

Jute Commissioner orders and Jute Balers Association trade ban fallout

The Jute Commissioner ordered traders and balers to keep zero stock from May 5. The step aimed to improve raw jute availability for mills. However, millers and traders said the instruction worsened day-to-day sourcing. They said suppliers struggled to manage costs and outstanding dues under strict stock rules.

The JBA stopped publishing quotations from May 7 after the Jute Commissioners Office trade ban began. Industry members said this removed the main reference price for raw jute purchases. In a representation to the Union textiles secretary, the JBA said markets turned uncertain. Mills said they could not gauge procurement costs reliably.

The JBA also wrote to Chief Minister Suvendu Adhikari on state-level charges, Om Soni said. The association sought removal of agricultural marketing fees on raw jute in West Bengal. It said similar fees were abolished in Assam and Bihar. The group also stressed stronger payment discipline to suppliers.

Industry insiders alleged stockists already captured much of the available crop earlier. They claimed trading at raised rates reduced fibre left for mills. Only about 2-3 lakh bales were said to remain late in the season. Mill sources said the shortage tightened just as procurement became less transparent.

Soni described the market as near breakdown after trading halted and quotations stopped. "The zero-stock order is a double-edged sword. The move is aimed at releasing hoarded raw jute, but is also hurting mills, and suppliers are caught between rising costs, unpaid dues and strict stock mandates,\" Soni told. \"Our only request is that the government withdraw or extend the deadline so that remaining raw jute stocks reach the market and struggling mills can avoid closure for some time,\" he added.

West Bengal jute mills seek BJP government steps on imports and stocks

Mill owners said regulated B-Twill sacking prices did not match raw jute inflation. They said the widening gap tightened working capital and forced shift cuts. The industry also flagged the policy timeline as a risk. Trade restrictions were scheduled to run until June 30, they said.

Stakeholders said the new jute year starts on July 1, with fresh crop arrivals expected near end-July. They said this created a supply gap that many mills might not survive. Millers said emergency relief could include releasing residual stocks. They also sought temporary import options.

Former IJMA chairman Sanjay Kajaria said the industry expected a more responsive approach. \"The jute sector welcomes the new BJP government in West Bengal, and we look forward to working closely with Chief Minister Suvendu Adhikari to stabilise raw jute supplies and protect livelihoods in the industry,\" he told. Kajaria said stability and consultation mattered most.

Kajaria said, \"Our expectation from the double-engine government is very clear: a predictable policy framework, timely consultations with stakeholders and swift action on de-hoarding and imports so that mills can keep running and workers jobs are secure,\" Kajaria said. Industry sources said limited imports from Bangladesh could offer short-term support. They cited Titagarh, Bhadreswar, Hazinagar and Jagatdal as vulnerable clusters.

A jute mill owner linked the current stress to long-term hoarding and weak supply access. \"Years of unchecked hoarding have left mills unable to buy. West Bengal voted for regime change. The jute industry only asks that the positive impact of this change be visible at the mill gate before the end of May,\" the owner said. Industry sources said the government response would be closely watched.

Mill sources said the sector faced a period with little raw material and limited price clarity. They warned that more shutdowns could deepen labour distress across the jute belt. Industry groups continued to press for residual stock release, trade easing, and emergency imports. They said these steps could keep mills operating until new crop supplies arrive.

With inputs from PTI