Crisis Talks: West Bengal's Jute Industry on the Brink

West Bengal Labour Minister Moloy Ghatak will meet with jute mill managements to address a growing crisis in the industry. Unions and mill owners have sought state intervention due to declining government orders, leading to production cuts. The sector struggles with overproduction and a drop in demand for jute bags.

West Bengal Labour Minister Moloy Ghatak is set to meet with jute mill managements on Thursday to confront a burgeoning crisis in the sector.

Unions and mill owners alike have called for state government intervention to overcome current challenges.

In an unusual move, representatives of the jute mills' trade unions convened with Ghatak on Tuesday to discuss the downturn in government orders.

Union leaders outlined the production cuts triggered by insufficient purchase contracts and supply orders from the jute commissioner’s office, voicing grave concerns about the industry’s slowdown and its impact on workers.

“We plan to reiterate these concerns when we meet the state labour minister on Thursday,” a senior member of the Indian Jute Mills Association stated.

The jute industry is grappling with a crisis due to overproduction and waning demand for jute bags, particularly in foodgrain packaging.

Annual demand has fallen from 38-39 lakh bales in 2021-22 to an estimated 30 lakh bales in 2024-25, leading to surplus capacity and job cuts.

During the ongoing Kharif Marketing Season 2024-25, the industry has received orders for just 3.63 lakh bales against the planned indents of 7.17 lakh bales by June 2024, functioning at only 40 to 50 percent capacity, insiders reported.

Additionally, the sugar industry has not fully adhered to mandatory packaging directives, with just 7 percent of production packed in jute bags this season, against the mandated 20 percent.

In a meeting, unions and the state government resolved to escalate these issues to the central government, specifically the Ministry of Textiles, to ensure strict monitoring and implementation of the Jute Packaging Materials Act and Jute and Textiles Control Order.

The state government aims to draft a comprehensive representation pressing for immediate action to alleviate the crisis and guarantee the sustainability of the jute industry, which supports 40 lakh jute farmers and 4 lakh workers, chiefly in West Bengal, as per sources familiar with the matter.