Raw jute shortage is expected to hit Rabi crop packaging

The production of gunny bags was seriously hampered by persistent disruptions in raw jute supplies to mills. This could have an adverse effect on the supply of packaging material for Rabi crops, industry sources said on Tuesday. 

The quantity of raw jute being hoarded could be about 20 Lakh bales, according to industry estimation, and the supplies to mills are around 50 percent as per their specifications, they added. 

A portion of jute mill owners reported that some units have stopped operations because they could not get enough raw materials at a reasonable price. 

The industry regulator had directed stockholders to keep no more than 500 quintals of raw jute from 17 November in an attempt to avoid the hoarding of the product and increase supplies to mills. 

The order came at a moment when the commodity price rose to over Rs 6,000 per quintal, affecting the production of bags. However, traders had challenged the raw stock limit order at the Calcutta High Court. 

Recently, if submitted by the stockists, the jute regulator has been asked by the court to allow an extension of time to impose the 500-quintal stock limits order. However, the court said that the office of the Jute Commissioner will be free to take steps after the extension date expires.  

Moloy Chakraborty Jute Commissioner told PTI, "Monday was the last day for submitting applications as per the Court order. We are looking into all the applications of the raw jute traders who have applied for an extension of time so that traders can abide by the control order." 

The condition had not improved much with raw jute price remaining at nearly Rs 6,000 a quintal, despite the JC's order and requests from the West Bengal government, the industry sources said. 

The West Bengal government suggested during a meeting of the Group of Ministers on Monday that action could be taken against traders if the supply is not streamlined, they added. State Finance Minister Amit Mitra chaired the meeting. 

Based on the study of the State Agriculture Department, at the next meeting scheduled which is to be held by the end of this month, the government would set a reasonable price for raw jute. 

Millers have committed to the availability of 11 lakh bales compared to an expected demand of 25 lakh bales of jute sacks for packaging Rabi crops.