Indian jute mills grapple with price rise as raw jute stocks decline

India's jute industry is currently dealing with price increase of raw jute due to a shortage caused by recent restrictions on imports from Bangladesh via land ports. While the industry has found some relief from curtailed imports of finished Bangladeshi jute goods like sacking cloth, bags, hessian, and twine, the raw jute restrictions are proving to be a major hurdle. The industry is urgently appealing to the government to exempt raw jute from import limitations, especially at the Petrapole land border.

Raghavendra Gupta, Chairman, Indian Jute Mills Association (IJMA) says, the new port restrictions are tough for the industry. While curbing subsidized finished goods imports from Bangladesh is a positive step against unfair competition, the restriction on raw jute imports, particularly through Petrapole, is a serious concern.

India relies on Bangladesh for around 6 lakh bales (around 1.08 lakh metric tons) of high-grade raw jute annually. This specific type of raw material is crucial for manufacturing value-added export items. The import restrictions have already driven up raw jute prices and threaten further spikes, creating supply bottlenecks and disrupting production across numerous mills.

IJMA has formally requested the government to lift restrictions on raw jute, specifically highlighting Petrapole and exploring alternative routes like the riverine passage to TT Shed, Khidirpore. The association is engaging with the central ministries of textiles, commerce, and DGFT to resolve the matter urgently, says Gupta, higlighting the critical need for a swift resolution to prevent further disruption to India's vital jute sector.