Bengal’s jute industry is hit by historic crisis as prices skyrocket and farmers lose hope

New Delhi: Bengal’s jute industry, once celebrated as the “golden fibre” industry, is now facing one of its worst crises in decades. Raw jute prices have risen to more than Rs 9,000 a quintal—almost 60 per cent more than the government’s minimum support price of Rs 5,650—raising fears of instability in mills, farmers, and the overall rural economy.

Trinamool Congress Rajya Sabha member Ritabrata Banerjee recently raised the alarm, warning that the lack of a coherent buffer and procurement policy has left the industry vulnerable to sudden shocks.

“The jute value chain is crumbling due to policy inaction. The House must act, or Bengal will lose an industry which provides jobs for millions,” he urged, demanding immediate attention from the Standing Committee on Labour, Textiles and Skill Development.

The crisis is multifaceted. For the first time in recent memory, the government had no working buffer stock of raw jute.

Last year’s fibre procured under MSP went straight into compulsorily government-packing supplies, leaving mills with no reserves to rely on for immediate purchases. Mill closing stocks have now declined to only 4.78 lakh bales—scarcely sufficient for one-and-a-half months’ usage.

Adding to the pressure is the Centre’s August 2025 ban on imports through West Bengal’s land ports, which had long served as entry points for cheaper raw jute from Bangladesh. Imports are now permitted only through Mumbai’s Nhava Sheva port, a move that industry stakeholders argue has made procurement costlier and slower, deepening shortages.

The farmers, who constitute the backbone of the jute economy, have been hit hardest. Of the over 70 lakh bales produced during the 2024-25 season, the Jute Corporation of India bought only 6.24 lakh under MSP.

“Many of us were compelled to sell for less than the minimum support price. Many will turn to paddy or maize next year. Jute no longer seems a secure crop,” commented one farmer from Nadia district.

Within the mills, the workers talk of uncertainty. “Production is already slowing down due to raw material shortages. If this goes on, closures and job losses will follow,” a senior trade union leader in Hooghly, a district with the jute industry as a major employer.

The crisis of the industry is not economic but survival. With Bengal providing the greatest percentage of India’s jute production, any disruption affects not just rural livelihoods but also the packaging industry, where jute bags continue to be a requirement for food grain and sugar.

Banerjee has demanded a rethink on procurement and price policy to bring back stability. Unless there are corrective steps taken immediately, stakeholders fear that the “golden fibre” would soon lose its sheen, leaving Bengal’s workers and farmers in the lurch.