Jute industry eyes June 3 ECJ meet for relief amid supply crunch and soaring prices

The jute industry is pinning its hopes on the upcoming Expert Committee on Jute (ECJ) assembly, scheduled for June 3 in Kolkata, because it grapples with excessive uncooked jute prices, delayed crop arrivals, and tight supply situations.The ECJ, beneath the Ministry of Textiles, will evaluate the uncooked jute and mesta supply-demand state of affairs for 2024–25 and additionally assess prospects for the 2025–26 crop. The assembly will carry collectively officers from the Jute Division, National Jute Board, Ministry of Agriculture, and different key stakeholders.While official estimates recommend there needs to be enough availability—73 lakh bales of manufacturing, 5 lakh bales of imports, and 23 lakh bales of carryover inventory—industry sources declare precise provides are tight, largely as a result of hoarding. Jute mill officers mentioned present annual consumption stands at roughly 70 to 72 lakh bales.“A delayed monsoon in key jute-growing areas like Murshidabad, Nadia, and Goalpara has pushed back sowing, and fresh arrivals may not come before September. This could cause a supply gap in July and August. Prices have already shot up to Rs 6,800–7,200 per quintal, much higher than the MSP of Rs 5,650,” mentioned Sanjay Kajaria, former chairman of the Indian Jute Mills Association, quoted PTI.Despite rising considerations, industry gamers allege that the Jute Commissioner’s Office (JCO) has did not implement a buffer inventory launch or take measures towards hoarding and speculative withholding of uncooked jute. Mills, significantly in North Bengal, are dealing with operational pressure, with many operating solely 4 to five days per week as a result of procurement challenges and escalating enter prices.A mill proprietor, requesting anonymity, mentioned that the state of affairs has grow to be so extreme that they’re struggling to pay wages and meet statutory obligations.The jute sector is trying to the ECJ assembly for concrete interventions, together with the discharge of buffer shares, strict motion towards hoarding, and efficient enforcement of the Minimum Support Price (MSP) to stabilise market situations.