Latest news with #RaghavendraGupta
Fibre2Fashion
23-07-2025
- Business
- Fibre2Fashion
India's jute mills hit by raw material shortage, price spike
India's jute industry is reeling under a shortage of high-grade raw jute following restrictions on imports from Bangladesh through land ports. This has resulted in a steep rise in raw material prices. However, the domestic industry has found some respite from the curtailment of Bangladeshi finished goods such as sacking cloth, bags, hessian, and twine. The industry has urged the government to exempt raw jute from such restrictions—especially via the Petrapole land border. Raghavendra Gupta, chairman of the Indian Jute Mills Association (IJMA), told Fibre2Fashion , 'The recent port restrictions imposed by India are a mixed development for our industry. While the restriction on the import of finished jute goods is a welcome move that will help curb unfair competition from heavily subsidised Bangladeshi exports, the restriction on raw jute imports—particularly through Petrapole—has caused serious concern. India depends on Bangladesh for nearly 6 lakh bales (approximately 1.08 lakh MT) of high-grade raw jute annually, essential for producing value-added export items. With the restriction on this raw material, raw jute prices have already risen and threaten to spike further, creating a supply bottleneck and disrupting production cycles across mills.' India's jute industry is grappling with a shortage of high-grade raw jute following import restrictions via Bangladesh land ports, particularly Petrapole. While curbs on finished jute goods help domestic producers, restrictions on raw jute have led to price spikes and supply disruptions. The Indian Jute Mills Association (IJMA) has urged the government to exempt raw jute imports. IJMA has appealed to the government to exempt raw jute from these restrictions—particularly via Petrapole and other feasible routes such as the riverine route to TT Shed, Khidirpore. 'We are engaging with the Ministries of Textiles, Commerce, and DGFT to resolve the matter urgently,' he added. He further suggested that the restrictions should be extended to include woven fabrics of jute—whether bleached or unbleached—twine, cordage, rope, cables of jute, and sacks and bags of jute used for packing goods. Meanwhile, mills are facing uncertainty. Some are attempting to realign procurement through alternate ports, but logistical and cost inefficiencies make this approach unsustainable. If the issue is not addressed swiftly, the supply shortage could lead to reduced capacity utilisation and even temporary closures. Regarding opportunities arising from the restrictions, IJMA said the curbs on finished jute product imports present a chance for the domestic industry to recapture lost market share in both domestic and international markets. Indian jute products, which had lost ground due to dumping and subsidies offered by Bangladesh, now have a more level playing field. However, this opportunity can only be fully realised if raw jute supply is stabilised. The restriction has led to sharp price spikes in raw jute in the domestic market. Mills are reporting volatility and rising procurement costs. If raw jute imports remain restricted, prices are likely to stay elevated, impacting the cost structure of finished jute products and jeopardising export competitiveness. Raw jute prices have been on an upward trajectory since early 2025, and the recent restrictions have further accelerated this trend. In some markets, prices have risen by ₹300–500 per quintal in just a few weeks. The industry anticipates further escalation if access to Bangladeshi raw jute is not restored. IJMA stressed that it is vital for the government to reconsider imports of raw jute (HS Code 5303) through Petrapole and riverine routes such as TT Shed, Khidirpore. The government should also expedite trade remedial measures, such as anti-subsidy investigations against WTO-inconsistent subsidies offered by Bangladesh on finished goods like bleached/coloured fabrics and bags, to prevent misdeclaration. According to sourcing intelligence tool TexPro, India imported 25.898 million kg of raw jute (HS Code 5303), valued at $21.594 million, during January–April 2025. Imports stood at 129.487 million kg ($88.619 million) during the full year 2024. Fibre2Fashion News Desk (KUL)
The Print
23-04-2025
- Business
- The Print
Jute industry urges textiles ministry to rescind packaging dilution approval for FCI, state agencies
'The Centre has approved the dilution of 1.23 lakh bales in favour of two states and the FCI. We urge the textile ministry and state governments to intervene and withdraw this decision to protect the jute industry and farmers,' IJMA chairman Raghavendra Gupta told PTI. The Indian Jute Mills Association (IJMA) also sought West Bengal Chief Minister Mamata Banerjee's intervention against the dilution. Kolkata, Apr 23 (PTI) An association of jute mill owners has appealed to Union Textiles Minister Giriraj Singh to withdraw approvals for packaging dilution, granted to Food Corporation of India (FCI), Haryana and Madhya Pradesh procurement agencies, for the rabi marketing season (RMS) 2025-26. In a letter dated April 22 to the textile minister, IJMA highlighted that the dilution approvals violate mandatory jute packaging notifications and severely impact the livelihoods of 40 lakh jute farmers and 3.5 lakh industrial workers. The millers' association argued that the FCI and the state procurement agencies (SPAs) had failed to adhere to supply plans, with '100 per cent default in indents' for November 2024, leading to last-minute order bunching—over 4 lakh bales in February and 5 lakh in March 2025. IJMA also emphasised that jute mills have already supplied 96 per cent of orders for FCI and SPAs, with remaining deliveries set for completion by April 30, 2025. Despite this, the FCI and Haryana have floated tenders for 1.02 lakh synthetic (HDPE/PP) bags, undermining jute demand, the IJMA chairman claimed. As of now, only 50,000 jute bales are scheduled for May 2025, leaving the industry with surplus capacity, the IJMA letter pointed out. Demands of the FCI and the state procurement agencies (SPAs) can easily be met within this supply plan, ensuring full utilisation of jute mills and protecting workers' livelihoods, it said. Approving synthetic bags is unnecessary and harms the jute sector, the letter noted. 'We would, hence, request that approval for dilution being awarded to FCI and SPAs in the present instance be rescinded forthwith,' Gupta said in the letter. Dilutions, in future, also need to be awarded only if they are strictly in consonance with the provisions of the Act and notifications so as to not jeopardise the interests of the industry, raw jute farmers and workmen, he added. PTI BSM BDC This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
