Jute industry incurs Rs 1,250cr loss due to lockdown
The sector is very crucial for the West Bengal'seconomy as 40 lakh farmers and three lakh workers at the jutemills are associated with the industry which contributes Rs6,500 crore to the state GDP, he said.
"Around 1.5 lakh tonne of jute goods production withan estimated value of Rs 1,250 crore has already been lost.Some mills have managed to reopen but are functioning with 5-10 per cent of their workforce," Indian Jute Mills Associationchairman Raghavendra Gupta told .
With dwindling cash flow, jute mills are facinghardship and will have "no alternative but to close units", ifthis situation continues, he said.
Jute industry's loss has been seen as gain to theplastic sector, he said, adding that dilution of mandatoryjute packaging has taken place during the lockdown.
"About 3 lakh bales of jute bag orders have beendiverted to the plastic industry and several states have askedmills to stop production," IJMA officials told .
If the lockdown is extended further, more dilution ofthe mandatory jute packaging cannot be ruled out, they said.
"Prices of raw jute have come down as most millsremained closed. The jute fibre price for TDN3 grade hasfallen below the minimum support price of Rs 4,225 perquintal," he said.
The carry-over raw jute is now expected to be over 22lakh bales by end of the 2019-20 crop year.
Gupta said the jute industry has prepared a standardoperating procedure to run mills during the lockdown whilestrictly adhering to social distancing and health safetynorms. BSMBDC BDC