Jute Sector Faces Declining Demand: 32nd SAC Meeting Highlights Industry Woes

The Indian Jute Mills Association addressed several issues at the 32nd SAC meeting in Delhi, including falling demand for jute bags. Various stakeholders from sugar and plastic industries discussed concerns about pricing and compliance. The industry seeks government support for mandatory jute packaging and other critical measures.

The Indian Jute Mills Association emphasized critical issues at the 32nd Standing Advisory Committee (SAC) meeting in New Delhi, highlighting the sector's struggles due to declining demand for jute bags, officials revealed. Representatives from sugar and plastic industry bodies were also present at the meeting.

The SAC recommends policies to the Union government regarding mandatory use of jute packaging materials for essential commodities like food grains and sugar.

The Jute Commissioner's Office (JCO) underscored the need for sector support. An estimated 40 million farmers and 3.5 lakh jute mill workers rely on the industry.

Sugar industry representatives raised concerns about jute bag pricing and quality, urging the government to set fixed rates. Major buyers' reluctance to use jute bags despite environmental benefits also came under scrutiny.

Non-compliance with government notifications by the sugar industry was a noted issue.

Plastic industry representatives called for the removal of discouraging language about plastic bags in the Jute Packaging Materials Act.

IJMA Deputy Chairman Rishav Kajaria revealed the jute industry is operating at 55% capacity, affecting 50,000 workers, with projected demand for jute bags dropping to 30 lakh bales for 2024-25.

IJMA urged SAC for immediate government intervention, enforcing 100% reservation norms in food grain and sugar packaging for 2024-25 and addressing various policy and financial issues. The sector, contributing over Rs 12,000 crore to the rural economy, faces challenges like falling raw jute prices below MSP levels.

(With inputs from agencies.)