Latest News | Mills Commit Less Supply Than Estimated Jute Bag Demand for Rabi Crop Season

Kolkata, Dec 7 (PTI) Compared to an estimated demand of 25 lakh bales of jute sacks for packaging of Rabi crop, millers have committed to supply 11 lakh bales as they are struggling to clear a backlog of gunny bags for Khrif crop, an official said on Monday.

Jute mills have a backlog of over 2.5 lakh bales of packaging material for Kharif crop, he said.

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The Union food and public distribution department held a virtual meeting with the industry stakeholders on Monday and placed the packaging material deamand for Rabi season, Indian Jute Mills Association chairman Raghavendra Gupta said.

"The food department has estimated 25 lakh bales of jute bag demand for Rabi season, while we have committed for 11 lakh bales till May 15 next year," Gupta told PTI.

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The department has not cancelled the backlog orders for Kharif crop packaging, he said.

After a review by the Jute Commissioner's office, dilution of the packaging material may take place, he said.

"During the meeting, the government officials said the food department and states have not agreed to any cancellation of the order which was of 15.5 lakh bales. The entire order has to be supplied, Gupta said.

"Mills had a backlog of over 3 lakh bales as of November. Some units were reluctant to supply as raw material prices had escalated," sources claimed.

Gupta said the issue about pricing of bags in the wake of an unprecedented surge in raw material cost has been fought in the court, and mills will have to fulfil their commitments.

The backlog is due to "improper planning of the Jute Commissioner's office" and now the regulator will have to ensure that mills supply jute bags to meet cumulative requirements, the source alleged.

An additional order of 1.75 lakh bales has been placed by the government in December, they said.

The Jute Commissioner's office could not be reached for comments.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)