- After the Chief Executive Officer of the North Brooke Jute Mill, Kolkata, was killed as a result of violence in the factory, the jute industry has asked the State govt to mandate packaging of rice and potatoes, West Bengals leading commodities, in jute bags.
- The violence was triggered due to workers’ fear of loss of wages when the management proposed cutting back on work hours due to paucity of demand.
- The central govt passed the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, stipulating compulsory packaging of foodgrains, sugar, cement and fertiliser to help the jute industry.
- However, the industry failed to modernise and enhance competitiveness over time.
- After the UPA II govt mandated packing 90% of rabi crops in jute bags, and later extended it to the khariff crops too, the industry purchase excess raw material in anticipation of an increased order.
- As this failed to materialise, 25-40% cut backs were necessitated triggering the violence.
- Read at: http://www.thehindu.com/todays-paper/tp-business/shaken-jute-industry-looks-to-state-govt-for-help/article6121356.ece
Exams Perspective:
- Status of Jute Industry in India
- Jute Crop
- Kharif crop
- Rabi crop