TMC seeks Centre’s intervention to stabilise raw jute market

Kolkata, Jan 1 (PTI) The Trinamool Congress has sought Union textiles ministry's help to stabilise the raw jute market, warning that the sector is facing an economic and social emergency, particularly in West Bengal.

In a letter to Union Textiles Minister Giriraj Singh, TMC Rajya Sabha MP Ritabrata Banerjee said raw jute prices had surged to around Rs 12,000 per quintal, more than double the minimum support price (MSP) of Rs 5,650.

He added that the current crisis, marked by acute scarcity of raw jute, sharp price volatility, curtailment of mill operations and loss of employment, was the result of policy shortcomings over the past few years rather than a natural market failure.

He pointed to the absence of a credible raw jute stabilisation or buffer mechanism and irregular demand planning under the Packaging Commodities Supply Order (PCSO) and Gunny Bags Tender (GBT) system as key reasons behind the turmoil.

While minimum support price (MSP) procurement was undertaken during low-price years, including substantial purchases in 2023-24, Banerjee said these were not backed by transparent buffer norms, release triggers or stock rotation policies.

As a result, MSP procurement absorbed distress sales by farmers but failed to prevent the current scarcity and price shock, he added.

The situation was further aggravated by uneven and delayed PCSO demand, which forced mills to cut production and reduce raw jute purchases, adversely affecting farmers, he said.

Subsequent revival of orders in a compressed manner led to panic procurement by mills, pushing prices to unsustainable levels and intensifying volatility.

Highlighting the impact across the jute economy, Banerjee said several mills were curtailing shifts or suspending operations due to unaffordable raw material costs and working capital stress, while thousands of jute workers were losing employment days and wages.

He also flagged uncertainty for farmers and warned of packaging stress in the government's foodgrain procurement system.

The MP urged the ministry to announce a raw 'jute stabilisation' or buffer framework with clearly defined reserve norms and transparent release triggers, ensure predictable and evenly distributed PCSO demand, and strengthen farmer-facing MSP operations through faster procurement, wider reach and assured payment timelines.

Stressing that the jute sector sustains millions of farmers and workers and supports a strategic national packaging requirement, Banerjee cautioned that without timely intervention, the crisis could cause long-term structural damage to the industry. PTI BSM MNB