Kolkata, Jan 17 (PTI) The Indian Jute Mills Association (IJMA) has urged the Centre to urgently intervene to control spiralling raw jute prices and ensure availability of the fibre, proposing a complete ban on raw jute trading by private traders after March 31.
In a letter to jute commissioner Amrit Raj, the association said raw jute availability with mills has sharply decreased, with stocks declining by around 1.25 lakh bales in December 2025 alone, even as prices surged to an unprecedented Rs 13,000 per quintal for South Bengal TDN-3 grade.
The situation has forced several mills to shut down or drastically cut production, rendering over 75,000 workers jobless, the association claimed.
To arrest price escalation, IJMA proposed that traders, dealers, stockists and agencies be given time till March 31 to liquidate their raw jute stocks, after which any private trading in raw jute would become illegal.
During this period, mills are expected to consume around 12-15 lakh bales, enabling them to hold stocks of nearly 7 lakh bales within the prescribed limits by the end of March 2026.
The association estimated that 25-30 lakh bales of the 2025-26 raw jute crop are currently held by upcountry traders and middlemen.
IJMA suggested that the balance quantity be tendered to the Jute Corporation of India (JCI) at prices fixed by the government, with the corporation subsequently supplying jute to mills based on linkage with B-Twill orders from April onwards.
The association said the proposed framework would help stabilise raw jute prices, ensure uninterrupted fibre supply to mills, and secure the availability of jute bags for the Rabi Marketing Season 2026-27 season.
It would also prevent volatility in jute bag prices supplied to the Food Corporation of India and state procurement agencies, while safeguarding domestic and export markets, the association added.
The proposal follows discussions held on January 14 in the presence of the West Bengal labour minister, deputy jute commissioner, trade unions and industry representatives, where participants unanimously flagged the severity of the crisis and sought immediate policy intervention. PTI BSM MNB
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