Jute Industry Struggles Amidst Declining Demand and Outdated Pricing

The jute industry is experiencing a significant reduction in demand for packaging bags, leading to reduced mill operations and job losses. Outdated pricing mechanisms further strain millers. The sector calls for immediate intervention to address these pressing issues and safeguard livelihoods.

The jute industry is grappling with a dramatic drop in demand for packaging bags by nearly 30% due to decreased procurement from the sugar industry. This slump has forced mills to cut working hours, resulting in significant job losses, stakeholders reported.

The outdated pricing formula for jute goods supplied to the government remains a critical concern, prompting an urgent call for its revision by the Indian Jute Mills Association (IJMA). The association emphasized that this stagnant system continues to shrink profitability for millers and farmers alike.

Despite predictions of future demand growth tied to an anticipated bumper harvest, the industry urges for immediate measures to overhaul the pricing structure and ensure compliance with governmental mandates to stabilize this essential sector.

(With inputs from agencies.)