Assam: Production halted at Silghat Jute Mill for over 4 months

A CORRESPONDENT

NAGAON: The Assam Co-operative Jute Mill at Silghat, Nagaon, once a profitable venture and a symbol of hope for Assam’s industrial sector, has remained shut for over four months, sparking widespread concern among locals.

Mill authorities stopped production on February 1 this year due to a sharp rise in raw jute prices and an acute shortage of supply. As a result, the unit has been idle for over four months, leaving hundreds of workers and staff in a crisis. 

With no wages, many workers are now forced to sell vegetables or work as daily wage labourers to survive. Though the management has been paying an ex-gratia of Rs 4,000–Rs 6,000 per month to workers and staff since February, costing the mill Rs 35-40 lakh monthly, employees say it is not enough to cover their basic needs.

While the official reason cited is raw jute shortage, locals allege more profound issues. They allege “gross inefficiency and corruption” among some mill officials and short-sighted decisions by a section of the management committee as key factors behind the current deadlock. The Assam Co-operative Jute Mill Workers’ Union, formed to protect workers’ interests, has also been accused of adopting a silent, anti-worker stance.

Construction of India’s only co-operative sector jute mill began in 1960, and production started in 1971. It ran profitably for several years but faced challenges from 1980 due to alleged loot and corruption by top officials. Losses crossed Rs 3 crore, forcing the government to lock the mill in March 1984. Production resumed in January 1986 under the Assam Accord. After clearing dues like wages and power bills, it became profitable again in 1992 and even weathered the Covid period. It closed briefly in 2020 due to internal disputes but reopened with efforts by then-minister Keshav Mahanta. A second unit was later launched with women workers, managed by a Kolkata-based firm. 

The present deadlock reportedly stems from unpaid dues of several crores owed to jute suppliers by the director of the Kolkata firm, who also serves as a director of the mill. Conscious citizens have demanded a high-level probe into the entire affair. 

The shutdown has also hit trade and commerce in Silghat. With machinery lying idle, equipment is developing rust and damage.

Citizens and conscious groups have urged the new state government to intervene immediately and take steps to resolve the crisis and restart production at Assam’s only co-operative-based industrial unit.

Also Read: Assam Cooperative Jute Mill posts ₹58 crore sales in 2024–25