In Kolkata, West Bengal Labor Minister Moloy Ghatak will meet jute mill managements on Thursday to address the looming crisis in the sector.
Both unions and factory owners have called for the state government to intervene to address the current challenges.
Breaking with the norm, representatives of jute mill unions met Ghatak on Tuesday to discuss the easing of government orders.
Union representatives highlighted production cuts arising from inadequate purchase contracts and supply orders from the jute commissioner's office, expressing deep concern over the slowdown in the industry and its ramifications for workers.
"We intend to reiterate these concerns when we meet the state Labor Minister on Thursday," said a senior member of the Indian Jute Mills Association.
The jute industry is facing a crisis due to overproduction and declining demand for jute bags, particularly in food grain packaging.
Annual demand has plummeted from 38-39 lakh bales in 2021-22 to a projected 30 lakh bales in 2024-25, leading to overcapacity and employment reductions.
For the current Kharif 2024-25 marketing season, the industry has received orders for only 3.63 lakh bales, a stark contrast to the 7.17 lakh bales planned for June 2024, operating at just 40-25. 50 percent of its capacity, industry experts said.
Furthermore, the sugar industry has not fully complied with mandatory packaging directives, and this season only 7 percent of production is packaged in jute bags, compared to the required 20 percent.
During a meeting, the unions and the state government agreed to raise these issues with the central government, specifically the Ministry of Textiles, to ensure strict monitoring and implementation of the Jute Packaging Materials Act and the Jute and Textiles Control Order. .
The state government intends to draft a comprehensive representation urging immediate steps to mitigate the crisis and ensure sustainability of the jute industry, which supports 40 lakh jute farmers and 4 lakh workers, predominantly in West Bengal, according to sources familiar with the matter.
Both unions and factory owners have called for the state government to intervene to address the current challenges.
Breaking with the norm, representatives of jute mill unions met Ghatak on Tuesday to discuss the easing of government orders.
Union representatives highlighted production cuts arising from inadequate purchase contracts and supply orders from the jute commissioner's office, expressing deep concern over the slowdown in the industry and its ramifications for workers.
"We intend to reiterate these concerns when we meet the state Labor Minister on Thursday," said a senior member of the Indian Jute Mills Association.
The jute industry is facing a crisis due to overproduction and declining demand for jute bags, particularly in food grain packaging.
Annual demand has plummeted from 38-39 lakh bales in 2021-22 to a projected 30 lakh bales in 2024-25, leading to overcapacity and employment reductions.
For the current Kharif 2024-25 marketing season, the industry has received orders for only 3.63 lakh bales, a stark contrast to the 7.17 lakh bales planned for June 2024, operating at just 40-25. 50 percent of its capacity, industry experts said.
Furthermore, the sugar industry has not fully complied with mandatory packaging directives, and this season only 7 percent of production is packaged in jute bags, compared to the required 20 percent.
During a meeting, the unions and the state government agreed to raise these issues with the central government, specifically the Ministry of Textiles, to ensure strict monitoring and implementation of the Jute Packaging Materials Act and the Jute and Textiles Control Order. .
The state government intends to draft a comprehensive representation urging immediate steps to mitigate the crisis and ensure sustainability of the jute industry, which supports 40 lakh jute farmers and 4 lakh workers, predominantly in West Bengal, according to sources familiar with the matter.
