To N. Guinea’S Kenaf

Indian Jute Threat

JUST after the announcement by Australian Territories Minister Hasluck that top priority now will be given to the establishment of a kenaf fibre industry in New Guinea (see page 47, December), there came an important report from India.

The Minister for Agriculture, addressing the Indian Central Jute Committee, declared that great head way has been made in establishing jute plantings, and India’s jute mills were now assured of supplies. (In December, 1951, dealing with the copra-sack situation, we pointed out that with the partition of India and the establishment of the separate State of Pakistan, one country found itself with the jute crop and the other country (India) with the mills. To protect its important jute industry, India immediately set about estab lishing plantings of her own.) The Minister said that in the year of partition—l947—Pakistan took over 75 per cent, of the jute-growing areas. The remaining 650,000 acres produced 1.7 million bales of raw jute. But by 1952, India had 2 million acres planted, and the output was 4.8 million bales—four-fifths of India’s jute requirements. Of the 5 million bales required by India’s 112 mills, 5.3 million bales “is within easy reach of accomplish ment” in 1955-56.

The effect of this already is seen n reduced prices of copra-sacks. If Pakistan now presses ahead with the establishment of mills, the com petition must become keener, and prices inevitably fall.

These developments, though im mediate good news to the copra producer, must be looked on with ome misgivings by parties interested n the establishment of a kenaf in lustry in New Guinea. Their product, however good, will have o compete with the jute products of ndia and Pakistan.