The jute industry has registered a record high goods production of 1.77 million tonnes in 2007-08, riding on the sprouting of 30 medium-sized mills in Andhra Pradesh and Bengal following the sudden surge in demand due to a three-month long strike early last year.
This is the highest production in the last six years. In 2002-03, the production of jute goods had reached a high of 1.62 million tonnes which was crossed in the last financial year. The lowest production in these six years was 1.35 million tonnes in 2006-07.
Indian Jute Mills Association (IJMA) Chairman Sanjay Kajaria said, “The rise in production was beyond our expectations. We hope the trend continues for the next few years. Then, India will once again be able to secure a safe position in the global markets especially in the face of onslaught from Bangladesh, Nepal, Pakistan and China.”
The mushrooming of the 30 new jute mills, most of which are located in Andhra Pradesh, has resulted in an increase in production by 15-17 per cent, according to conservative industry estimates. New mills in northern Bengal have also contributed to the rise in production. There was a surge in demand when the markets opened after a three-month closure from January 5, 2007 to March 8, 2007.
The surge in demand was close to 60 per cent and as a result, the industry stepped up production to reach high targets and maximise profits.
India currently has 73 big jute mills, which are supplemented by these 30 medium-sized mills with average production of 40 tonnes per day (tpd). Production in the big mills vary between 80 and 90 tpd. At present, the medium-sized mills are mainly supplied with duty-free imports from Bangladesh under the open general license system.
Despatches of jute goods for internal consumption was also highest in 2007-08, reaching 1.54 million tonnes. Despatches for exports in 2007-08 was 207,000 tonnes.
