Home / Knowledge / News / Textiles / Indian jute mills concerned over bag pricing formulae
Indian jute mills concerned over bag pricing formulae
Sep '17
The Indian Jute Mills Association (IJMA) is concerned over the proposed new pricing formulae of jute bags adopted by the Tariff Commission 2017 that will bring down prices of the bags supplied to the government by minimum 10 per cent. The association feels if the pricing is implemented from September, several mills will turn ‘unviable’ and shut down.

The Tariff Commission recently said in its fifth report that jute bag prices are 10-15 per cent lower than the price at which the government purchases them. IJMA representatives have met jute commissioner A Madhukumar Reddy to discuss the issue, according to news agency report.

IJMA has also raised the issues with West Bengal labour minister Moloy Ghatak and wants the state government to intervene in the matter. Jute mills in the state, which accounts for more than 80 per cent of the jute production in India, directly employ over 2.5 lakh people and engage three to five lakh farmers indirectly.

The jute industry may annually lose Rs 200 crore if the new pricing is implemented. A loss of about Rs 3,000 will be incurred on each tonne. Government agencies procure jute bags at a cost of Rs 65,000 per tonne.

The jute industry's demand for fair price of jute bags has gone unheeded in the past 15 years. Each year, the government purchases around 0.7 million tonnes of jute bags through the food ministry and Food Corporation of India (FCI) valued at around Rs 8000 crore. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Textiles | On 19th Jul 2018

Kenya to use Sh6 bn Indian loan to upgrade Rivatex

Kenya will use a Sh6 billion loan from India’s Exim Bank to expand...

Vietnam's textile-garment export turnover $16 bn in H1 '18

Apparel/Garments | On 19th Jul 2018

Vietnam's textile-garment export turnover $16 bn in H1 '18

Vietnam is among the world's five biggest textile exporters and...

Courtesy: Adidas Originals

Fashion | On 19th Jul 2018

Adidas Originals launches silhouette, P.O.D. System

Adidas Originals has launched its newest silhouette, P.O.D. System,...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Urmil Arya

Sushila International, a well established textile organisation established ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search