E-Kantipur

BIRATNAGAR, SEP 26 -  

Irregular power supply and shortage of workers have hit jute mills in the Sunsari-Morang Industrial Corridor, one of the country’s major industrial belts. Unable to run the factories to full capacity, these mills are not only losing revenue but are also forced to bear increased production cost.

Eight jute mills in the corridor are losing Rs 10 million daily, their promoters say. The daily production of the mills has declined to 200 tons of finished jute from 280 tons in normal times. “There has been a decline in the production of jute due to irregular power supply and shortage of manpower,” said Raj Kumar Golchha, president of the Association of Jute Industries.

The price of Nepali jute in India, the major market, is Rs 80,000 per ton. Nepali jute products like sacks, sutali and thin sacks are sold for IRs 47,000, IRs 41,000 and IRs 53,000 per ton respectively. As compared to other industries, jute mills provide employment to a large number of workers. Around 20,000 workers are currently engaged in the jute mills in this corridor.

Arihanta Multi-Fiber of Golchha Organisation has been producing only 70 tons per day against its total capacity of 90 tons. Similarly, Raghupati Jute Mills has been producing 50 tons although its actual capacity is 70 tons a day. Swastik Jute is producing only 22 tons although its actual capacity is 35 tons daily.

The daily production of Chandra Shiva Jute Mill has declined to 10 tons from 15 tons while Nepal Jute is producing 20 tons. Similarly, the production of Baba Jute has been limited to 22 tons from the 30 tons per day earlier, and CM Jute and Guheswori Jute Mill each have been confined to 12 tons and 20 tons daily. Ramesh Rathi, director of Swastik Jute, said the jute industry is losing production of 104 days due to power crisis. The corridor is currently facing a daily four-hour loadshedding.

The government’s apathy in promoting jute farming in the country and reluctance to give export subsidy for third country export has pushed the industry to the brink of collaspe, promoters say. “These industries will face closure if the government does not manage an industrial friendly environment for them,” said Golchha.

While Nepali jute mills are grappling with power crisis and labour shortage, Indian jute industries are getting benefits from their government. The Indian government has been providing subsidy on fertilisers and seed to farmers engaged in jute farming. The Indian government has also provided 15 percent cash incentive to jute export to third countries.

 Rathi said that the decline in the productivity would affect government revenue and employment opportunities.

Posted on: 2010-09-26 08:38

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