Jute mill loss is Rs 400 cr gain for plastics sector

The jute industry has lost around Rs 400 crore to plastics, post-dilution of the Jute Packaging Materials Act (JPMA).

Over the past two months, since the mandatory packaging was diluted by the Gujarat High Court, the industry has lost Rs 400 crore.

The indefinite strike in West Bengal jute mills has only compounded the industry's losses. The strike is a fallout of a dispute on non-fulfilment of obligation on the part workmen accepting productivity-linked wages.

The high court has diluted 25 per cent in sugar and 20 per cent in foodgrains from 100 per cent in both the products. The Indian Jute Mills Association has, however, challenged the dilution with the Appellate Authority, but the strike could impact its case.

Industry representatives said customers of the jute industry such as sugar had been suffering because of a supply crunch. "The foodgrains procurement programme of the government will also suffer," they said.

The slack season for the industry starts from the middle of April and it will take two-three weeks for normal production to resume, whenever the strike is called off. "Many mills may not open at all if the strike is prolonged "� even a little longer," said industry sources.

The consequence of continuing strike is a permanent market loss of 2-3 lakh tonne. "Jute growers will suffer from lower prices of raw jute and may not grow the product next year," they said.

The strike is now six-week-old and there has been loss of production to the tune of 1.8 lakh tonne, with value losses amounting to around Rs 800 crore.

Around four million families of farmers are associated with the industry, which employs 2.2 lakh workers in the state and 10,000 new workers a year, on an average.