Jute mill homeowners face capability constraints to take export orders


“Such a state of affairs has prompted the millers and the jute commissioner to lock horns,” one mill proprietor stated.

Jute mills have stopped taking export orders owing to capability constraints, whereas scarcity of uncooked jute and escalating costs have put the mills in a quandary.

The 90-odd jute mills throughout the nation, of which 74 are in West Bengal, are already flooded with the Centre’s order of supplying jute sacks equal of 24 lakh bales (each jute bale produces 500 sacks). The mills have equipped sacks equal to 14 lakh jute bales.

Common worth of uncooked jute touched Rs 8,100 per quintal on Thursday, a rise of Rs 500-600 a quintal in a span of two days. Costs had been at Rs 7,500-7,600 a quintal on Tuesday.

The jute commissioner’s inventory restrict of holding no more than 500 quintals at a time has led to decrease stock, increased logistics price and elevated manufacturing price, mill homeowners stated.

“Such a state of affairs has prompted the millers and the jute commissioner to lock horns,” one mill proprietor stated.

Export orders from Europe, East & South East Asia, West Asia, Africa, South America, North America and the Caribbean Islands began rising principally over the past quarter of FY21.

Jute merchandise valued at Rs 1,823.37 crore had been exported between April and December final fiscal. Had mills been capable of settle for all of the orders within the final quarter, exports in FY21 would have gone a lot past the Rs 2,423.45 crore determine achieved in FY20. Complete exports of jute merchandise in FY21 (last figures not but compiled) are nonetheless on the right track to cross the FY20 determine.

“We now have stopped taking orders,” Sanjay Kajaria, former chairman of the Indian Jute Mills Affiliation stated. He stated that since order flows are past the mills’ capability, the Centre has introduced a Rs 2,500-crore bundle for not solely modernisation of jute mills, however for opening just a few closed jute mills and enabling elevated cultivation of higher high quality uncooked jute.

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