Jute sector crisis: Bengal govt intervenes; suppliers lift strike

A Group of Ministers (GoM), headed by West Bengal Industry Minister Amit Mitra, on Friday urged jute balers, who are on strike, to resume normal supply to mills and not to raise the price beyond Rs 6,000 a quintal to ease the crisis in the sector arising out of price rise of raw jute, a minister said.

The Jute Balers Association (JBA), which has stopped supplying jute to mills since Monday protesting against a cap on the stock limit, decided to withdraw the strike following an assurance by the GoM that a solution will be worked out by mid-December.

After the GoM held a two-hour-long meeting with all stake-holders, state Labour Minister Malay Ghatak told PTI that the government will take all necessary actions, if required, to help smooth running of the industry.

The Indian Jute Mills Association had sought a meeting of the GoM to resolve the impasse.

"We took stock of the situation as the raw jute price has skyrocketed causing problems for the mills. We have asked suppliers not to raise the price of raw jute price beyond Rs 6,000 per quintal and resume normal supply," said Ghatak who is a member of the GoM.

"We have sought advice from the agriculture department on the fair pricing of raw jute under the current situation," he said.

Asked whether the government may fix a ceiling price for raw jute, the labour minister said that all necessary steps will be taken.

The Jute Balers Association (JBA) President Madan Gopal Toshniwal said, "We are withdrawing the strike following assurance from Mr Mitra that a solution will be worked out by mid-December.

The JBA went for the strike after Jute Commissioner's Office directed suppliers to fix stock limit at 500 quintals in place of the existing 1,500 quintals.

"The GoM was critical about the very high raw jute price and asked jute balers to resume supply though they asserted that continuing with just 500 quintals of stock is not viable and prices are soaring due to low production," a mill official said.

Other members of the GoM - Partha Chatterjee and Asish Banerjee - were present at the meeting along with representatives of the Jute Commissioners Office, Indian Jute Mills Association and the JBA.

Had the JBA continued with the strike that commenced on Monday, it would force mills to close down due to shortage of raw jute and render lakhs of workers jobless, they said.

It would also cause a major impediment for the government's foodgrain procurement in several states. Major grain-producing states like Haryana and Punjab were already facing a huge shortage of gunny bags.

West Bengal procures between one lakh and two lakh bales of jute bags a year and the backlog is to the tune of 50 per cent.