Sources in the Jute Balers Association, an organisation of raw jute traders inform that mill owners are desperately waiting for fibre, which is in short supply. Hardly there was any sale in the market in recent times, they add.

"There are ready buyers for raw jute in the market but we have no fibre to sell because the floods in the three districts of north Bengal, Bihar and in parts of Assam have destroyed about 10 to 15 lakh bales of raw jute," sources said.

It may be noted that raw jute from these part of the country is generally available in the first quarter of a jute year (July to June). The bulk of the fibre, which comes from south Bengal is yet to arrive in the market.

In the meantime, prices of raw jute have started skyrocketing. Even a month back, the average variety, TD-4 was availableat Rs 790 a quintal. At present, its price has gone up to Rs 790 a quintal.

"It will rise further because we are still not aware of the total damage done by the floods. Even after the water recedes, it will take some time for the crops to arrive in the market," sources added.

However, a section of the jute mill owners feel that the damage due to floods will not be high. "All goods are stored in proper condition and not much have been damaged in the floods. Let the water recede and the transport system becomes normal, raw jute will start coming in to the market," a mill owner said.

Even as the industry is busy tackling the acute crisis of fibre shortage, labour problems have surged, once again. All the major trade unions have demanded higher bonus.

"Last year, the industry made huge profits as the prices of raw jute were low and the demand high. The mill owners must share this profit. They must give a higher bonus and also clear the statutory dues of the workers," a trade union leader said.

Workersare observing one hour cease work everyday. A member of the Indian Jute Mills Association (IJMA) said that labour problems before the festival season have become an annual affair.

"Irrespective of our profits, every year before the puja festivals the workers demand for a higher bonus. It has become a custom of sorts," a mill owner said.

Recently elected chairman of IJMA Sanjay Kajaria said that the mill owners are ready to pay as per schedules of Bonus Act.

"All the mills are ready to pay bonus as per the act. However, the workers are demanding higher, which I think, most mill owners will not be able to pay. In some of the mills, like Megna, Gouripore, New Central, Alexandra, Caledonian and Kardah, the workers have defied the strike call and have been working regularly," Kajaria said.

Sackings' orders, both from government and private organisations, have started piling up. At present, orders for 50,000 bales of jute sacks are yet to be supplied to the governmental agencies for the kharif crop. It wasalso learnt from IJMA sources that government is thinking of releasing further orders for 80,000 bales from the third week of October, mostly for the rabi crops.