Jute industry in the North Andhra region is bogged down in crisis, as factories are facing a major challenge from Bangladesh, which exports raw and finished products to India at cheaper prices.

A.P. Mesta Twine Mills’ Association State president G. Ch. Venkataraju and secretary Krishnakant Agarwal has urged the government to impose anti-dumping duty on jute exported by Bangladesh to protect the industry in Andhra Pradesh and other States. Moreover, illegal import of yarn and twine from Bangladesh is another challenge. Many importers in India are encouraging illegal business to evade taxes.

Recently, four factories Swarnandhra Jute Mill of Pydibhimavaram, DJR Jute Mills of Lolugu, SKSN Jute Mills Private Limited of Regidi Amdalavalasa and Navya Jute Twine Mills Private Limited of Bobbili have announced lock-out.

Neelam Jute Mills Private Limited, Srikakulam and Rajam Poly Packs Private Limited brought down production of twine and yarn drastically to minimise losses.

The closure of operations and reduction of production has led to labour unrest, with several managements failing to meet the demands of workers.

Production has come down to 10,000 tonnes from 75,000 tonnes. It points to the worst ever situation in jute industry in the North Andhra region.

The Association would be soon meeting Chief Minister N. Chandrababu Naidu and seek his interference in resolving the issue as thousands of people are dependent on jute industry. The association will also seek incentives on electricity charges and taxes for encouraging jute industry in the State.