The Naihati Jute Mill Co Ltd has issued suspension of work notice effective from Friday blaming lack of raw jute and labour unrest inside the mill.
Some 4,000 workers in the mill situated in the North 24 Parganas district will be affected by the decision.
Already a dozen jute mills have shut down owing to raw material shortages and and other issues during the last 12 months. Some 30,000-40,000 workers have lost their jobs till now.
The mill management said a notice of suspension of work has been issued till the working situation improves.
Indian Jute Mills Association had approached the Prime Minister for his intervention to resolve the crisis that may pose a grave threat to the industry on which 2.5 lakh mill workers and 40 lakh farmers are dependent.
The lobbying body wants the government to relax the ceiling price of Rs 6,500 per quintal for raw jute which the mills may offer to farmers. Their claim is that with the ruling market price at Rs 7,200 per quintal, mills are unable to purchase sufficient raw jute.
IJMA has also reached out to the West Bengal Chief Minister Mamata Banerjee seeking her help in the matter.
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