Jute mills flag shutdown risk by March; IJMA seeks urgent Bengal govt intervention

Kolkata, Dec 3 (PTI) The Indian Jute Mills Association (IJMA) has sought intervention from the West Bengal government to address what it described as a “deepening crisis” in the sector, warning that more than half the mills in the state may be forced to close by March 2026, due to an “unviable” price freeze.

In a letter to State Labour Minister Moloy Ghatak dated December 3, IJMA said the crisis threatens the stability of the sector, and the livelihoods of over two lakh workers directly employed in the mills.

Lakhs more are dependent on the industry indirectly, it said.

IJMA said the Jute Commissioner’s September 15 notification, which “froze” the price of 580-gm B Twill bags at September 2025 levels for October and “indefinitely thereafter”, has destabilised the sector.

The association accused the Jute Commisioner’s Office of abandoning the CCEA-mandated pricing methodology and ignoring rising input costs, fluctuating raw jute prices and judicial directions.

Raw jute prices have surged from Rs 7,500 to Rs 10,000 per quintal, making production financially unviable, particularly for B and C-category mills, IJMA claimed.

The notification has also created “a direct conflict” with Calcutta High Court directions requiring the JCO to ensure raw jute availability at the notified price whenever prices are fixed, the letter stated.

The association also warned that the price freeze has hit wage payments, especially statutory Dearness Allowance (DA). With the CPI rising by 129 points in the previous quarter, mills are required to pay higher DA for November 2025-January 2026.

But, the frozen bag price has not factored in revised wage costs, it said.

Mills are operating at losses because the notified price is at least 10-12 per cent below the cost of production, making it “financially impossible” to pay the enhanced DA, IJMA said.

The association said many mills have already cut or suspended production, and warned that without urgent corrective action, the sector may see widespread closures within months, with severe social and economic consequences for jute-dependent districts.

IJMA urged the state government to convene an urgent meeting with the JCO and industry representatives to resolve the issues arising from the September notification.

The crisis is “a direct threat to the labour force, industrial stability and the state’s economic fabric”, it added. PTI BSM RBT