West Bengal Labour Minister Moloy Ghatak will meet jute mill managements on Thursday to address the looming crisis in the sector.

Both unions and mill owners have appealed for state government intervention to tackle the current challenges.

In a departure from norm, representatives of the jute mills' trade unions met Ghatak on Tuesday to discuss the decline in government orders.

Union representatives highlighted production cuts stemming from inadequate purchase contracts and supply orders from the jute commissioner's office, expressing deep concerns over the industry's slowdown and its ramifications for workers.

"We plan to reiterate these concerns when we meet the state labour minister on Thursday," a senior member of the Indian Jute Mills Association said.

The jute industry faces a crisis due to overproduction and diminishing demand for jute bags, particularly in foodgrains packaging.

Annual demand has plummeted from 38-39 lakh bales in 2021-22 to an anticipated 30 lakh bales in 2024-25, resulting in surplus capacity and job reductions.

For the ongoing Kharif Marketing Season 2024-25, the industry has received orders for only 3.63 lakh bales, a stark contrast to the planned indents of 7.17 lakh bales by June 2024, operating at only 40 to 50 per cent capacity, industry insiders said.

Additionally, the sugar industry has not fully complied with mandatory packaging directives, with only 7 per cent of production packed in jute bags this season, against the mandated 20 per cent.

During a meeting, unions and the state government agreed to escalate these issues to the central government, specifically the Ministry of Textiles, to ensure stringent monitoring and implementation of the Jute Packaging Materials Act and Jute and Textiles Control Order.

The state government intends to draft a comprehensive representation urging immediate action to mitigate the crisis and ensure the sustainability of the jute industry, which supports 40 lakh jute farmers and 4 lakh workers, predominantly in West Bengal, according to sources familiar with the matter.

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