The first jute mill of the country, Biratnagar Jute Mill, has been unexpectedly closed from Tuesday citing scarcity of raw materials.

The closure of the mill in the eastern district of Morang has left over 3,500 workers unemployed.

The mill was being run by the Arihant Multi Fibers, a member institution of Golcha Organisation, on a contract of five years since November 17, 2002. The company had agreed to inform the management board of the industry three months before it decided to withdraw from the contract. However, the workers say that the company had informed them only 15 days before the closure.

According to the agreement, the government would receive a sum of Rs 9.5 million as an annual payment from the Arihant group. The company has not finalised the payment of the workers as well.

However, Raghupati Jute Mill and Arihant Fibers mill owned by the company have been operating.

Former contractor of the mill Nirmal Kumar Byas had also closed the mill before the completion of tenure of the agreement with the government. nepalnews.com ia Apr 05 06