Bangladesh’s curb on raw jute export begins to pinch Indian jute mills: Report
A section of the mills has sharply cut production after raw jute prices touched Rs 1,10,000 per tonne mark, and traders and stockists are unwilling to release jute, anticipating even higher prices, according to industry sources.
Bangladesh's restriction on raw jute exports since September has begun to pinch jute mills in the Indian state of West Bengal, Indian media reported citing industry sources.
A section of the mills has sharply cut production after raw jute prices touched Rs 1,10,000 per tonne mark, and traders and stockists are unwilling to release jute, anticipating even higher prices, according to industry sources, The Business Line reported.
West Bengal is the primary jute and jute goods production centre in India.
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In the Hooghly industrial belt, jute mills operate at 10-15 shifts per week, far below sustainable levels. Concerned about further price escalation of raw jute and uncertain availability, even relatively well-placed mills are holding onto the raw material.
In a letter to Indian Textiles Minister Giriraj Singh on 18 December, Indian Jute Mills Association (IJMA) Chairman Raghavendra Gupta said the Bangladesh government's action has abruptly disrupted raw material supplies, exposed mills to severe financial risk and led to an abnormal escalation in domestic raw jute prices.
"The combined impact threatens mill operations, employment and the stability of the jute value chain," Gupta said.
Industry sources reported that some mills have reduced working shifts due to the shortage of raw jute. A growing number of mills are now operating at bare-minimum levels, reflecting an industry-wide contraction that could accelerate in the coming weeks.
The situation has worsened despite repeated deliberations at the Jute Advisory Group, where concerns over raw jute availability, hoarding, and price volatility have been repeatedly flagged. While demand dilution and stock control measures were discussed, ground-level enforcement has remained absent, industry participants said.
According to The Business Line, IJMA said in its letter that it favours a ban on India allowing export of high-yielding varieties of jute seeds on which Bangladesh is heavily dependent. These high-yielding seeds are a vital input enabling Bangladesh's jute production and exports.
