India’s jute industry has voiced its concerns over the threat of a significant production cut of 30% to 50% from September to November this year. The industry is experiencing low demand for jute packaging materials for food grains from a number of states.
“In the current jute season from September to November 2023, the actual demand indent placement is lower by 30% to 40%,” the Indian Jute Mills Association’s chairman Raghav Gupta told the Press Trust of India. “In September alone, demand indents are expected to be lower than 2.5 lakh bakes against [the] planned 3.21 lakh bales due to slow order placing by Maharashtra.”
Even after September, the indents for October and November are expected to be at around 1.48 lakh bales compared to 2 lakh bales as planned back in August, according to the IJMA. “In terms of capacity utilisation, our production cut will be to the tune of 30% to 50%, unless indents are not revised upwards,” said Gupta.
The IJMA has appealed to the central government to amend its sixth (revised) supply plan which has been issued by the Food and Public Distribution department, ET Bureau reported. The current low demand levels have caused many jute mills to initiate production cutbacks and this could impact the pricing of raw jute, which is already just below the Minimum Support Price level, according to the IJMA.
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