Cheap imports, declining exports & slower domestic demands add to jute industry crisis
Updated: Aug 19, 2014 04:15:01pm
New Delhi, Aug 19 (KNN) Indian jute industry has been reeling under severe crisis owing to declining domestic demands and increasing imports from Bangladesh.
The jute manufacturers have suggested a few measures to the government to revive the industry such as – concessions on exports and containing the imports from Bangladesh.
The jute manufacturers have sought concessions to export for making their products competitive globally in comparison to Bangladesh.
Bangladesh offers a 10 per cent cash incentive on the export of jute items, which makes their products cheaper when compared to India.
The industry has also demanded restoring percentage of packaging of food grain and sugar into jute bags to 100 per cent.
The manufacturers have also suggested that penal duties be imposed on jute imported from across the border.
Several jute mills in states like West Bengal, which is a hub of jute industries, are shutting down due to low demand.
The jute industry provides direct employment to 3.7 lakh workers and supports livelihood of 40 lakh rural families.
Punjab is the largest purchaser of jute bags in each rabi and kharif seasons for packing food grain. About 50 per cent of jute bags manufactured in the country and supplied to the government are purchased by Punjab.
Punjab is gradually shifting to plastic bags. In the past three months, there is an almost 30 per cent fall in the off-take of jute bags pushing up the production cost in the jute mills.
Punjab was supposed to purchase 700,000 bales (300,000 tonnes) of jute bags in the past three months. However, they have purchased only 300,000 bales or about 100,000 tonnes. The jute industry has the capacity to supply 300,000 bales of jute bags each month, according to a media report. (KNN/SD)
The jute manufacturers have suggested a few measures to the government to revive the industry such as – concessions on exports and containing the imports from Bangladesh.
The jute manufacturers have sought concessions to export for making their products competitive globally in comparison to Bangladesh.
Bangladesh offers a 10 per cent cash incentive on the export of jute items, which makes their products cheaper when compared to India.
The industry has also demanded restoring percentage of packaging of food grain and sugar into jute bags to 100 per cent.
The manufacturers have also suggested that penal duties be imposed on jute imported from across the border.
Several jute mills in states like West Bengal, which is a hub of jute industries, are shutting down due to low demand.
The jute industry provides direct employment to 3.7 lakh workers and supports livelihood of 40 lakh rural families.
Punjab is the largest purchaser of jute bags in each rabi and kharif seasons for packing food grain. About 50 per cent of jute bags manufactured in the country and supplied to the government are purchased by Punjab.
Punjab is gradually shifting to plastic bags. In the past three months, there is an almost 30 per cent fall in the off-take of jute bags pushing up the production cost in the jute mills.
Punjab was supposed to purchase 700,000 bales (300,000 tonnes) of jute bags in the past three months. However, they have purchased only 300,000 bales or about 100,000 tonnes. The jute industry has the capacity to supply 300,000 bales of jute bags each month, according to a media report. (KNN/SD)
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