Jute industry in North Andhra seek financial package from govt

A delegation of management representatives planned to meet Chief Minister N. Chandrababu Naidu for seeking financial package for the jute industry in North Andhra region as it is facing deep crisis due to stiff competition from products from Bangladesh which exports raw and finished products to India at cheaper price. Apart of which illegal import of yarn and twine from Bangladesh is another challenge.

Owing to this, the local industries are unable able to sell their products at competitive rate. It has cascading affect on the workers who lost wages and other benefits in the last two years. Also as many as 20 industries which reported losses have cut down their production and some of them closed their operations.

Sunil Kumar Bhararia, Executive Director of AS Jute Product Private Limited of Vizianagaram said that the managements would face financial difficulties if they continue the production. Workers would agitate if they stop operation.

Jyothi Jute Mills Private Limited Managing Director Purushottam Kr. Bajaj has urged the government to extend its support since jute industry was able to stop migration of people from Vizianagaram and Srikakulam district.

The managements argued that they can clear the statutory payments only when the government would come out with a bailout package.

The jute industry sought incentives in power bills, deferment of taxes of commercial taxes department and others.