IJMA Urges Policy Support to Revitalize Troubled Jute Sector

The Indian Jute Mills Association (IJMA) has requested government intervention to address the challenges faced by the jute industry, including reduced demand for jute bags and its negative effect on workers and farmers. The IJMA proposes several measures, such as stricter enforcement of packaging norms, to stabilize the sector.

The Indian Jute Mills Association (IJMA) is seeking urgent policy intervention from the government to assist the struggling jute industry, which is grappling with declining demand for jute bags. This downturn has adversely affected both workers and farmers, a senior official disclosed.

In a letter to Consumer Affairs, Food and Public Distribution Minister Pralhad Joshi, IJMA underscored the vital role the jute industry plays in providing packaging materials for food grains procured by the Food Corporation of India (FCI) and State Procuring Agencies (SPAs). Despite its readiness to meet the full demand for jute bags during the kharif and rabi seasons, the industry's demand has plummeted from 38-39 lakh bales annually in 2021-22 to an anticipated 30 lakh bales in 2024-25, former IJMA chairman Sanjay Kajaria stated.

This drop in demand has led to surplus capacity, compelling mills to cut shifts and shut down operations, resulting in significant job losses. The repercussions have also hit jute farmers who are struggling to sell their produce at the minimum support price, Kajaria added. To boost demand, IJMA recommends that all imported wheat be packaged in jute bags under the mandatory provisions of the JPM Act, 1987.

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