Raw jute supply concerns, political activities prompting jute mills to close in Bengal: Officials

Despite large order inflows, some jute mills in West Bengal are witnessing operational disruptions due to political factors and raw jute supply concerns, officials said on Tuesday. Reliance Jute Mill is a labour issue...," president of the association, Madan Gopal Toshniwal, said. A section of jute mill owners also claimed that political activities are impacting mill operations in the state.

Despite large order inflows, some jute mills in West Bengal are witnessing operational disruptions due to political factors and raw jute supply concerns, officials said on Tuesday. Three mills - North Brook, Weaverly and Howrah Jute Mill - have closed down and more are faced with similar crises, they said.

The Reliance Jute Mill at Bhatpara has also shut shop owing to alleged labour trouble, rendering thousands of workers jobless. The mill authorities suspended production "indefinitely" from Monday after the workers' union did not allow employers to go ahead with a "downsizing" exercise, sources said.

"Unprecedented raw jute prices and pruning margins are compelling mills to adopt alternate methods to stay afloat. More such jute mills are likely to close in spite of high government orders," one source said.

Some mill owners said raw jute suppliers are dispatching only 30-35 per cent of the normal volume, a claim refuted by the Jute Balers Association. "Supply of raw jute is normal for mills which are clearing their dues, but some have huge pending bills and they are facing problems. Reliance Jute Mill is a labour issue...," president of the association, Madan Gopal Toshniwal, said.

A section of jute mill owners also claimed that political activities are impacting mill operations in the state. Indian Jute Mills Association chairman Raghav Gupta had said that some mills are closing down due to "specific issues" and that will not hit the industry as a whole.

A Group of Ministers (GoM), headed by West Bengal Industry Minister Amit Mitra, had last week urged striking jute balers to resume normal supplies to mills and not raise the price beyond Rs 6,000 a quintal to ease the crisis in the sector.