Jute mill owners fear closure

The jute industry in eastern India may soon close down if it is forced to pay increased dearness allowance to workers, mill owners said today.

"We will have no alternative other than down shutters if we are forced to pay increased da to workers under the present circumstances, as this will increase the cost of production by about Rs 1000 per tonne," they said.

At a time when the industry is facing stiff competition from the synthetics lobby, the demand from the trade unions for payment of increased DA is not justified and will lead to a situation where the jute industry may not survive, and meet the fate of textiles industry, they said.

Eastern region was the pioneer in textiles as some mills had started operation in the region much before independence, but now the situation is such that there is hardly any textile mill left in the state or in the entire region and this was largely due to increased interference by trade unions in day-to-day operation and management, the mill owners said.

The comments from the mill owners come at a time when trade unions have served a notice for an indefinite strike in the industry from november 29 to press for their 13-point charter of demands, including payment of arrears dues on da in cash and assurance for subsequent payment as applicable.