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Related Keywords: high price, huge stock, Indian Jute mill association, jute bags, jute bags from West Bengal mills, Jute Packaging Materials Act, packaging of foodgrain, West Bengal jute mills

West Bengal jute mills are sitting on huge stocks, even after operating as only a third of capacity. According to rules, it is compulsory that 90 per cent of packaging of foodgrain be done in jute bags but the Punjab government is refraining from purchasing jute bags used for foodgrain packing. Punjab which is the largest buyer of jute bags from West Bengal mills. In addition, orders from the sugar sector have dried up due to which the jute sector in West Bengal is faced with crisis.

Related Keywords: down shutters, drop in order flow, IJMA, illegal import, Indian jute producers, JPMA, jute demand, Jute geotextiles, large-scale unemployment, reduced shifts, West Bengal jute mills

Jute demand has been on a down slide forcing many jute mills in West Bengal to down their shutters or go for reduced shifts. There has been a production cut of 30 to 40 percent in the last few months because of drop in order flow.

According to industry officials, jute mills in West Bengal are running at 60 per cent of their capacity and about one lakh workers have been rendered jobless. West Bengal has 64 of the 84 jute mills in the country.