Demonetisation Impact: 2500 workers lose jobs as a jute mill closes down in Bengal

This is the first time the demonetisation hits a large industrial unit in the country although it has already put the small businesses, farmers, small-scale vendors and workers in unorganised sectors into trouble.

Demonetisation Impact: 2500 workers lose jobs as a jute mill closes down in Bengal

Thanks to the demonetisation policy of Narendra Modi government, 2500 workers are out of job as a jute mill in Howrah district, West Bengal, has been temporarily shut down citing its incapacity to provide wages due to the scarcity of currency notes.

The management of Sree Hanuman Jute Mills issued a notice on Monday that says, “With deep regrets, management is hereby informed to the general body of workers and the operative Trade Unions of this mill that regarding the delay of payment of wages due to discontinuation of CURRENCY NOTE Rs 500/- & Rs 1000/- non co-operation activities from the part of some workers have been increasing day by day causing labour unrest, unlawful violence activities has took place in each and every shift (sic).”


The management of the mills declared a ‘temporary suspension of work’ till further notice. Adding to the woes of the workers, they will not be paid till the suspension of work gets cancelled. This is the first time the demonetisation hits a large industrial unit in the country although it has already devastated the small and medium businesses, farmers, small scale vendors and workers in unorganised sectors.

The situation is getting gruesome and going to ignite Mamata Banerjee’s call for a nationwide protest against Modi’s demonetisation. Trinamool Congress has already raised the demand of revoking this decision.

As per a Hindustan Times report, demonetisation will shatter the jute mills in the state which have 2.5 lakh workers on the payroll. The report says that almost 95% of the employees get their salaries in cash. Indian Jute Mills Association (IJMA) has sent a letter to the West Bengal government to intervene in the issue without any delay.

“In the name of demonetisation, the Centre has already caused tremendous sufferings to individual employers, employees and agriculture. It is extremely regrettable that a jute mill has to down its shutters throwing the lives of so many workers in jeopardy,” Mahesh Singhania, president of West Bengal Trade Associations, said to Hindustan Times.