Unrest In Bangladesh Hits Mustard Industry In Madhya Pradesh

The ongoing political unrest in Bangladesh has sent shockwaves through the Gwalior-Chambal region of Madhya Pradesh, where the mustard industry is a significant pillar of the economy. The region, known for its extensive mustard production, is facing severe crisis as the supply of mustard cake, a by-product of mustard oil production, has come to a halt. This disruption has led to a business loss estimated at around Rs 150 crore, affecting the livelihoods of approximately 20,000 people.

Gwalior-Chambal's mustard cake, also known as De-Oiled Cake (DOC), is primarily exported to Bangladesh, where it is used as poultry, fish, and animal feed. 

The region is home to over 50 mustard oil mills, with additional support from more than 150 mills in neighboring Rajasthan and Uttar Pradesh. The majority of the DOC produced in these mills-about 90 per cent -- is exported to Bangladesh. The recent violence and political instability there, however, has brought exports to a grinding halt.

Sanjeev Jindal, President of the Millers Association in Morena, said the situation is dire. 

"The instability in Bangladesh has shut down our entire business. Many of our racks are standing still. The entire unit is shut down," Mr Jindal said.

Gaurav Gupta, Secretary of the Millers Association in Morena, added, "The 50 oil mills in Morena produce oilcake. Morena is centrally located and connected to Rajasthan-UP. About 30 racks used to go from Morena, but this has been affected since July. Not only are the plants closed, but the oil mills have also shut down. Today, almost every plant is causing loss to the entire mustard lobby."

The impact of this crisis extends beyond the oil mills. 

The Gwalior-Chambal region typically produces around 3,500 tons of DOC daily, which is transported to Bangladesh from Sank and Rairu railway stations. Each rack carries approximately 2,500 tons of DOC, with an estimated value of Rs 6 crore. The halt in exports means that 25-30 racks, worth Rs 150 crore, are not being shipped monthly. Additionally, the Indian Railways, which earns Rs 70-75 lakh per rack, is losing crores of rupees each month due to this disruption.

The economic fallout has had severe social repercussions. Dr. Praveen Agarwal, President of the MP Chamber of Commerce and Industry, noted, "11 rakes had gone, and 7 are stuck. Thousands of people work in this sector, and workers have been sent home. Until a buyer is found in another country, there can be a significant loss. Ninety percent of our exports are to one country, and we hope the situation normalizes there."

The sudden halt in production and export has forced businesses to send home around 1,500 employees and workers, leaving their families in a livelihood crisis. Ram Tirath Singh, a worker at a solvent plant, shared, "Work has been stopped for a month. Earlier, we used to earn Rs 700-800, but work has stopped."

Chandan Chaudhary, another worker, echoed similar concerns: "I left Bihar with my wife and children to come here. I used to earn money, but work has slowed down. How will I survive?" 

"My truck has been idle for 15 days. There is no work, and I am on verge of starvation," said truck driver Jabar Singh Kushwaha.
With the primary buyer of Gwalior-Chambal's DOC being Bangladesh, the region is deeply concerned about the future. 

The stoppage of DOC exports has not only impacted the local economy but also put thousands of families at risk of poverty and hunger. As the political crisis in Bangladesh continues, the people of Gwalior-Chambal are left waiting for stability and the hope that their vital trade links will be restored.