Biratnagar Jute Mill, the first jute mill of the country has unexpectedly downed its shutters due to shortage of raw materials.
The Eastern district of Morang's mill's closure has rendered over 3,500 workers unemployed.
The mill run by Arihant Multi Fibres is a member institution of Golcha Organisation.
It was given on a contract of five years since November 17, 2002.
The company had earlier agreed to inform three months in advance if it decides to withdraw from the contract, but it actually informed them just 15 days before the closure, according to workers.
Government stands to receive a sum of Rs 9.5 million as annual payment from Arihant group, as per agreement.
The company has not finalised payment of workers.
Raghupati Jute Mill and Arihant Fibers mill owned by the company have been operating as usual.