The government has fixed Rs 175 per day or 4,600 per month minimum wages for the labourers working in jute industries. After dispute between the industrialists and labourers in the jute industry, the government has formed seven member committee headed by by Maha Prasad Adhikari of Nepal Rastra Bank (NRB) on January 15. The committee — that submitted its report on Friday — was formed to resolve the problems of the jute industry and suggest wages in a scientific way as the industry has been in downslide in recent times. The committee has recommended the government to provide uninterre puted and subsidised electricity and relaxes customs procedures. The industrialists has suggested Rs 149.60 as the minimum daily wage or Rs 3,622 per month but the labourers have suggested Rs 190 daily wages or Rs 4600 as monthly salary. Wage issue is a major problem of the jute industry though it is a job-oriented industry.
Diwakar Golchha of Ari- hant Multifibres said wages should be fixed according to cost price, inflation and the neighbouring India’s Bihar jute industry’s wages as the Nepali jute sector has to compete with it. The committee has also advised the government to shut down those industries that cannot be revived. Amongst the eight jute industries, only four posted profits in the fiscal year 2007-08 while the rest remained in loss. The jute industry as a whole is suffering a loss of Rs 68 million.
The industry employed 13,000 workers during the fiscal year 2007-08. According to a study, the total annual sale of jute in the present fiscal year has decreased in comparison to last year. Though there was an increase of 8.17 per cent in the sales data of the first six months of the present fiscal year, the Magh and Falgun data reveal a decline of 13.37 per cent. The study has concluded that to bring efficiency in the jute industry there is a need to increase the output ratio of labourers and it is possible only through the joint effort of all the stake holders in the industry that is a pioneer one in Nepal. Jute is one of the major cash crops for farmers.
According to data, the total jute consumption in the local market in 2008 was 34,558 MT, 35,816 MT in 2007, 29,992 MT in 2006 and 24,252 MT in 2005.
The total import of jute was 49,918 MT in 2008, 49,875 MT in 2007, 39,262 MT in 2006 and 45,038 MT in 2005. The total jute consumption was 84,476 MT as per the 2008 data. Total production of jute in Nepal during the year 2008 was 71,239 MT of which Hessian jute comprised 10,024 MT, Sacking jute 33,463 MT, and Twine and others 27,752 MT. While during 2008, 64,482 MT jute was exported.
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