Market

Centre reduces raw jute stock limit to facilitate supply to mills

The Centre has additional lowered raw jute stock limit for balers and merchants in a bid to improve supply of the raw materials to mills at a time when main foodgrain producing states are going through a scarcity for the environment-friendly packaging materials, trade stakeholders stated on Sunday.

In a latest notification issued by the Office of the Jute Commissioner, the utmost stock limit has been introduced down to 500 quintals for jute balers from 750 quintals and 50 quintals for merchants from 150 quintals, they stated.

This is the second such transfer that the authorities have taken within the present year.

“In January, the government reduced the raw jute limit to 750 quintals from 1,500 quintals. Now, the same has been brought down to 500 quintals. It is not a viable quantity for a baling unit to run its operation smoothly,” Jute Balers Association secretary A Okay Palit instructed PTI.
Balers are main suppliers of raw jute to mills.

The ongoing raw materials disaster has led to “closure of nearly 15 mills and units that are still running have reduced utilisation and are making losses”, a supply within the trade claimed.

The Centre has put a ceiling on the stock limit with an goal to stop hoarding of raw jute within the market and ease supply of the commodity to mills at an affordable worth, the trade stakeholders stated.

The worth of raw jute continues to hover round Rs 7,000-7,200 per quintal, however the authorities pays Rs 6,500 per quintal because the raw materials price for gunny bag manufacturing, they claimed.

“The move to prevent hoarding could not yield much result for improving supply of the key raw material to jute mills. Millers and trade unions have been vocal against ineffective support price operation of the Jute Corporation of India,” the trade supply stated.

Meanwhile, the Commission for Agricultural Costs and Prices (CACP) has really useful that the JCI, a state-run organisation which procures raw jute, ought to take proactive steps to lengthen its attain for spot procurement instantly from villages as this can assist uncover aggressive costs.

Recently, the ministry of textiles had anticipated a shortfall in jute bag supply and suggested the authorities to think about inserting orders for plastic baggage.

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