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Jute mill workers may strike work once again
09
Nov '09
The jute mill workers have once again warned of going on a strike, which is sending jitters across the sector. These workers had struck work in 2008 for 18 days and also in 2007 for 63 days.

The jitters are due to the fact that the strike could affect output, which could also impinge on supplies and in turn increase the demands for diluting the jute provision act which makes it mandatory to package sugar and food grains in jute bags.

There are nearly 4 million farmers involved in raw jute production who after a long time are seeing a price rise in the beginning of the season. Prices have risen by Rs 700 a quintal, when compared with those prevailing at the same time last year.

The Indian Jute Mills Association (IJMA) is estimating the jute crop at 10.5 million bales (1 bale=180 kg), in the current season against 8.2 million bales in 2008-09, despite which prices of raw jute are moving in the northwards direction.

The jute manufacturing sectors biggest fear is that the strike might disrupt supply of jute fabrics and bags to the sugar and food grains sector in their busy season, which could have the plastics industry once again renewing the call to dilute the jute packaging act.

It may be recalled that the textile sector had proposed dilution of the jute packaging act in the beginning of the year, but was opposed tooth and nail by the Finance and Railway Ministers as they represent West Bengal, which is the biggest producer of jute in India.

Fibre2fashion News Desk - India


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