Jute mills in West Bengal are facing severe operational challenges with at least 14 mills across the Hooghly industrial belt either suspended or facing severe production disruptions due to raw jute shortages and unviable costs, according to the Indian Jute Mills Association (IJMA). The crisis has resulted in around 75,000 workers facing involuntary unemployment due to partial shutdowns, curtailed production, and irregular operations across North 24 Parganas and Hooghly districts and adjoining industrial belts. As reported by industry sources, mills are being forced to operate without raw material availability while the new crop remains ten weeks away. The industry is now urgently seeking intervention from the new BJP government to prevent large-scale mill closures and job losses.
The raw jute crisis has intensified dramatically over the past four months, with the Jute Balers' Association (JBA) quotation rising from ₹11,600 per quintal on January 1 to ₹17,100 per quintal on May 6, according to industry data. This represents more than three times the minimum support price of ₹5,650 and has created severe economic pressure on mill operations. The Jute Commissioner recently ordered traders and balers to maintain zero stock from May 5, but millers and traders report this has aggravated the supply problem rather than improving availability. Mill owners have alleged that operations have become economically unsustainable as government-controlled B-Twill sacking prices have not kept pace with the steep increase in raw jute prices, further squeezing working capital and forcing mills to cut shifts.
The crisis has reached a critical stage with the Jute Balers' Association stopping publication of quotations from May 7 after the trade ban came into force, effectively removing the market's main reference price. According to industry representatives, the absence of an official benchmark rate has pushed the market into complete uncertainty, with mills unable to assess procurement costs or secure adequate supplies. The Jute Commissioner's trade restrictions order remains in force until June 30, with the new jute year beginning on July 1, creating a critical supply gap that many mills may not survive without intervention. Industry insiders allege that large portions of the available crop have been cornered by stockists at inflated prices, leaving only around 2-3 lakh bales available at the end of the season.
Industry representatives are seeking urgent government intervention, including release of residual stocks, permission for emergency imports, and restoration of a viable price corridor. As reported by former IJMA chairman Sanjay Kajaria, the industry welcomes the new BJP government and looks forward to working with Chief Minister Suvendu Adhikari to stabilise raw jute supplies and protect livelihoods. The Jute Commissioner's trade restrictions order remains in force until June 30, with the new jute year beginning on July 1, creating a critical supply gap that many mills may not survive without intervention. In a representation to the Union Textiles Secretary, the JBA warned that the present crisis was not merely a seasonal shortage but the outcome of "prolonged speculative hoarding, distorted market conditions and administrative inaction," which had pushed raw jute prices far beyond viable industrial levels.
The timing of the jute industry crisis coincides with broader expectations for industrial revival in West Bengal following political developments. During the election campaign, Amit Shah had assured voters that industries and factories which either shut down or moved away from Bengal during previous years would be brought back if the BJP came to power. Supporters believe industrial revival could become a turning point for West Bengal's economy, especially for young people searching for better employment opportunities. The sector has welcomed the regime change while pressing for immediate relief measures, with immediate steps such as "unlocking residual stocks, easing trade restrictions and facilitating emergency imports from Bangladesh" being identified as potential temporary relief measures to keep mill gates open in key industrial areas. However, critics note that industrial growth would require deeper reforms involving land policies, investor confidence, labour conditions, infrastructure, and governance stability.
