Archive · 23 Dec 2025
Jute Mills Face Crisis Amid Rice Export Tensions
The jute industry in India is in big trouble because the price of raw jute has gone up to Rs 11,000 per quintal.
This has caused many mills to reduce operations or shut down, affecting around 3,000 workers.
At the same time, some rice exporters in India want the government to ban rice exports to Bangladesh because of recent attacks on Indian missions.
Others suggest quoting higher prices instead.
The situation is serious and could affect many people who work in these industries.
The government has been involved, but so far, nothing has changed.
The tensions highlight the complex relationship between trade and politics.
Raw jute prices have surged past Rs 11,000 per quintal, causing a crisis in the jute industry.
Several mills in West Bengal have reduced operations or shut down, impacting around 3,000 workers.
Traders are holding back raw jute in anticipation of higher prices, exacerbating the shortage.
Industry leaders warn of potential large-scale job losses if prices are not stabilized soon.
Some rice exporters want a ban on exports to Bangladesh due to safety concerns, while others suggest quoting higher prices.
- Who
- Jute mill owners, workers, industry bodies, rice exporters, and government officials in India and Bangladesh
- What
- Crisis in the jute industry due to surging raw jute prices and tensions in rice exports to Bangladesh
- When
- December 22-23, 2023
- Where
- West Bengal, India, and Chattogram, Bangladesh
- Why
- Acute shortages and speculative stockpiling of raw jute, leading to increased prices and operational disruptions; tensions in rice exports due to attacks on Indian missions in Bangladesh
Exporters Seeking Ban
Exporters Seeking Higher Prices
Export Ban
Exporters Seeking Ban
Some exporters want a complete ban on rice exports to Bangladesh due to safety concerns and retaliatory measures.
Exporters Seeking Higher Prices
Other exporters argue that instead of a ban, they should quote higher prices to compensate for the risks.
Price Competition
Exporters Seeking Ban
Exporters seeking a ban believe that India should not risk shipments to Bangladesh given the current tensions.
Exporters Seeking Higher Prices
Exporters advocating for higher prices argue that India should not offer rice at lower prices when Bangladesh is paying more under government-to-government arrangements.
- Raw Jute Price
- Rs 11,000 per quintal
- Mills Affected
- Jagatdal Jute Mill, Mahadev Jute Mill
- Workers Impacted
- 3,000
- Operational Shifts
- 10-15 shifts per week
- Industry Body
- Indian Jute Mills Association (IJMA)
- Regulatory Body
- Jute Advisory Group (JAG)
- Government Intervention
- High-level meeting with Deputy Jute Commissioner and West Bengal Labour Minister
- Rice Import Tenders
- 10 tenders floated, India lowest bidder in 6
- Lowest Rice Bid
- $351.11 per tonne
- Pakistan Rice Price
- $395 per tonne
