Market

Centre reduces uncooked jute inventory restrict to facilitate provide to mills

The Centre has additional lowered uncooked jute inventory restrict for balers and merchants in a bid to extend provide of the uncooked materials to mills at a time when main foodgrain producing states are going through a scarcity for the environment-friendly packaging materials, business stakeholders mentioned on Sunday.

In a latest notification issued by the Office of the Jute Commissioner, the utmost inventory restrict has been introduced all the way down to 500 quintals for jute balers from 750 quintals and 50 quintals for merchants from 150 quintals, they mentioned.

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

“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 uncooked jute to mills.

The ongoing uncooked 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 business claimed.

The Centre has put a ceiling on the inventory restrict with an goal to forestall hoarding of uncooked jute available in the market and ease provide of the commodity to mills at an affordable value, the business stakeholders mentioned.

The value of uncooked jute continues to hover round Rs 7,000-7,200 per quintal, however the authorities pays Rs 6,500 per quintal because the uncooked 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 business supply mentioned.

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

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



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