Millennium Post

Import of jute goods results in `1k cr loss to industry

Jute goods import from Bangladesh and Nepal by Bengal jute companies had resulted in a loss of around Rs 1000 crore for the jute industry, according to estimates. 

In 2014-15 around one (1) lakh tons of jute goods comprising gunny bags, yarns and fabrics were imported from Bangladesh and Nepal valued at around Rs 82,000/ton. 

Jute industry annual volume of business is around Rs 12,000 crore. It manufactures around 12 lakh tons of jute bags and an additional 4 lakh tons of other jute goods. Because of imports eighteen (18) mills had closed down and almost a lakh of workers lost jobs owing to shift cuts and pruning of production by almost 20 percent. 

According to latest Commerce Ministry reports, a few mills involved in imports were Kamarhatty, Ludlow, Cheviot, A I Champdany (earlier Anglo India Jute), Gloster and Budge Budge Jute.  

Many other Bengal jute companies had also imported but did it through different dealers and importers to avoid direct government heat.  

Jute bag imports were made for supply to government. The bags and yarns were imported at a lower price taking advantage of the 10% cash subsidy offered by Bangladesh on its jute goods and then supplied to government at a higher price. 
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