Four jute mills shut down in eastern region
MORANG: Investment worth more than one billion rupees is at risk of going waste while some 12,000 people have been rendered jobless with the closing down of four jute mills in the district.
The Biratnagara, Pathibhara, CB and Niki Jute mills closed down due to increasing power outage, lack of raw materials and market for jute products, said Raj Kumar Golcha, President of Nepal Jute Industries Association. Eight more jute industries operating in Sunsari and Morang are also at risk of shutting down, he added.
Nepal meets only 30 per cent of raw materials' demand for the jute industries whereas the remaining are imported from Bangladesh and India. Likewise, the jute products including sacks, bags and carpet are too exported to the two countries, said Prakash Mundada, Vice-President of Jute Industrialist and Jute Industry Association.
Jute industries are being encouraged by the governments in other neighbouring countries, but not in Nepal, he added.