Jute Sector Facing Three - Pronged Crisis 

Unchecked exports of raw jute, rampant hoarding leading to high fibre prices and the consequent spurt in prices despite statistically comfortable raw jute availability in this season - are three major problems facing by the jute industry.
In a recent communication to jute commissioner, Mr. Vinod Kispotta, Indian Jute Mill Association (IJMA) chairman, Mr. Manish Poddar has sought some effective steps immediately to save the industry from this crisis.
To tackle non-availability of raw jute, IJMA has sought intervention on some issues. It has suggested the union textile ministry to immediately restrict raw jute exports like raw cotton exports , to cool crisis and make the fibre available to the starving jute mills. It is felt that the authorities should immediately suspend all mandatory pre-shipment registration of raw jute and jute waste exports, if any, for an indefinite period, besides imposing all possible and available non-tariff (NT) barriers to curve jute exports. Simultaneously, the office of jute commissioner should start a de-hoarding drive in collaboration with the Jute Corporation of India (JCI) and the West Bengal government to ensure adequate crop availability to mills and overcome the man-made fibre shortage.
Reference to the menace of raw jute exports, Mr. Poddar has drawn the attention of the jute commissioner to export it by both land and sea routes to Pakistan, China and Vietnam. Based on figures available with the industry, it was revealed that the only between April and October 2009, there had been exports of 73,000 bales to Asia, Africa and Europe. Of late, this trend is on the rise and clandestine operations have started to different ports without checks and also through the porous borders of Bangladesh and West Bengal.
What has hurt the industry most is the cooked up fibre shortage story when this sector has come out with a comfortable raw jute production of 11 million bales in jute season 2009-10.