The jute industry is reeling under Rs 28 billion loss as of March 2018 as production of jute goods has stagnated, according to reliable industry sources. The Indian Jute Mills Association (IJMA), the industry lobby body, has rued that a host of factors have crippled production growth and sucked out nearly 0.4 million tonnes of output.
Forecast for Jute
According to the Union textiles ministry, in 2018-19, the total requirement of jute bags in the Kharif and Rabi seasons would be around 916,000 tonnes. The industry has a capacity to supply 1.58 million tonnes.
New Pricing Regulations
The jute industry is projected to lose Rs 200 crore annually in the wake of new pricing recommendations made by the Tariff Commission in its latest report. Losses incurred on each tonne is estimated to stand at Rs 3,000.
Presently, government agencies procure jute bags at a cost of Rs 65,000 per tonne. Recently, the Tariff Commission submitted its fifth report, while notifying that jute bag prices are 10-15 per cent lower than the price at which the government purchases them.