The industry was also a mute witness to the dilution of the mandatory order under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987. Sectors such as cement was exempted while fertiliser is on the way out of it.

The year also saw the jute industry mired in all sorts of controversies. While jute baron Arun Kumar Bajoria was hauled by the enforcement directorate for his alleged links in some Fera cases, the largest corporate house, the government-owned National Jute Manufactures Corporation Ltd (NJMC), was under CBI watch.

Of late, the West Bengal police unearthed a major racket of sales tax evasions spread all over the country and carried underthe holy name of Ram Ram. The millowners continued to take unaccounted discounts from raw jute purchases while defaults in statutory payments to the workers remained more of a routine.

The year infact had started off on a good note. In January, which is the mid-point of a jute year (July-June), the industry was flooded with huge orders especially from the government agencies. The mills recorded profits to the range of 45 per cent with the industry running to full capacities and the millowners finding it increasingly hard to meet the deadlines.

During the boom year, the average annual production soared to 16/16.5 lakh tonnes from the previous 14 lakh tonnes.

As the jute year ended, the focus shifted to the raw jute market which was rife with speculation on the likely yield of the golden fibre.

Raw jute traders warned of a below-normal production hoping this would trigger distress purchases by millowners, who countered it with the prediction that there would be no shortage of the fibre.

The year alsowitnessed another major development. The Jute Corporation of India, another central public sector unit, which till last year had been incurring huge losses for maintaining the fibre prices at the minimum support price level, was allowed commercial operations in the market. The corporation has since started registering operating profits but the government outstanding for its market support operation and for supplies to NJMC have remained as stale as ever.

The change of government at the centre also sent ripples across the industry. The present textile minister was reported to be in favour of the synthetic sector and the result was the dilution of the mandatory order.Jute critics may rejoice over the fact that such a protectionist act is finally on its way out of a market-dominated economy.

However, an industry observer remarked: "No one cared to notice one fact: violators of an act have been rewarded with the abolition of the act itself. Well, there is nothing impossible in Indian politics andparliament."The year also witnessed some activity at the secretarial level. The new textiles secretary, Shyamal Ghosh, immediately after assuming office some time in the middle of the year, started taking things head on. Bureaucratic sources said he met the chiefs of the top government agencies at regular intervals and enquired about developments in their respective areas.

Jute commissioner Bimal Pande, who was officiating as executive director, National Council for Jute Diversification was dislodged from his seat and asked to concentrate on promotion of the industry only. Reasons for such a drastic step could only be guessed and not cited.

On the workers' front, the industry witnessed some major but silent developments. Two companies compelled their workers to sign on bipartite agreements taking away almost all their legitimate rights. Trade union leaders were mute spectators to it. They failed to take up the cause as they hardly any control over the workers.

As the three-year tripartite agreementended on December 1, the unions have started placing their demands separately. However the millowners, after making a futile attempt at freezing any likely increase in dearness allowance, are demanding a sick status which would allow them to enjoy the various incentives that the West Bengal government offers to sick units.