Uncertain demand may hit jute production

Uncertainty over dilution of Jute Packaging Materials (compulsory packaging) Act, 1987, rising incidents of closures of mills last year and fear of low realisation is likely to affect overall jute production during the current season.

"Though sowing had picked up later after making a slow start in the beginning of the season, our initial assessments is that the crop this season will be lower than that of last year," sources in the agriculture department said.

India's jute production as per government estimate in the last season was about 110 lakh bales while industry estimate put the figure to a low of 90 lakh bales.

"Going by the present trend, we estimate that jute production during the current season would be significantly down to the region of 75 lakh bales," officials of Indian Jute Mills Association (ijma), the apex body of jute mills, said.

Union ministry of agriculture sources, however, said that the production might not be as low as being estimated by the industry.

"A number of reasons, including unfavourable weather in February-March, fear of dilution in jpma, and prospect of closure of mills, may lead to slight decline in production," he said.

The official, however, added that they were yet to arrive at final estimate and it will take them another 15-20 days to do so. "We are still assessing whether there was any impact of fears of dilution in JPMA during the sowing."