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Vizianagaram: Nellimarla jute mill closed due to jute shortage
- 2,500 workers from dozens of villages in the district depend on the unit for livelihood
- Company, which has been facing financial problems and frequently shutting down its shutters for the past few years, cites shortage of raw material as well as new policies of the Union govt
Vizianagaram: Nellimarla jute mills, one of the largest jute mills in united Andhra Pradesh, was closed on Saturday due to non-availability of raw material. As a result, 2,500 workers, including regular and contractual casual class, have been rendered jobless. The factory is a major source of livelihood for people in the area. Workers from 35 villages in Nellimarla, Gurla, Garividi and Cheepurupalli mandals come here to work in three shifts. But due to various reasons, the company is frequently facing the crises and is downing its shutters.
The Covid-induced lockdown had badly affected the company and the production has drastically fell as well as revenues.
Due to various reasons like financial problems, the company was closed May27, 2021. Later, with the efforts made by the local leaders and officials, the management had opened the unit on July 12. Again the company was closed for 10 days between from December 9 to 19 2021. Currently the mill is being operated only four days a week due to scarcity of jute.
As situation has not improved, the mill has no other option than stopping production altogether. The management announced that due to unavailability of jute here and the new policies imposed by the Union government they are closing the unit. The management appealed the workers to consider the closure period as no work, no pay days and they would be informed soon after the situation is stabilised.
President of Sramika Sangham P Appa Rao said the management has informed and served notice that it can't run the unit as the raw material (jute) is not available and it can't purchase from outside by paying high cost. So we have become jobless now."