Jute mills urge West Bengal govt to check raw material hoarding

In view of surging prices of the commodity, the Jute Commissioner office had recently capped raw jute holding at 1,500 quintals on own or third party account to prevent hoarding. “It is requested that the government of West Bengal kindly take cognizance of the order and instruct district administrations to conduct the search and seizure operations to eliminate hoarding activities,” IJMA said in a letter to the minister on September 18.

The jute industry has requested the West Bengal government to conduct search operations to check hoarding of raw jute, which, it claimed, has caused a sharp rise in prices and may lead to the closure of several mills. The Indian Jute Mills Association (IJMA) had written to state Labour Minister Moloy Ghatak, seeking directives for stringent action against raw jute hoarders.

The millers' body said the price of TD5 variety of raw jute has risen to Rs 5,500 per quintal in September from Rs 4,325 per quintal in June. In view of surging prices of the commodity, the Jute Commissioner office had recently capped raw jute holding at 1,500 quintals on own or third party account to prevent hoarding.

“It is requested that the government of West Bengal kindly take cognizance of the order and instruct district administrations to conduct the search and seizure operations to eliminate hoarding activities,” IJMA said in a letter to the minister on September 18. The millers' association had, in August, sought the state government's intervention to check raw jute hoarding.

The state government is empowered by the Jute Commissioner to ensure that no traders can hoard the commodity to reap extra profit, jute millers said. “The prices had already jumped over 20 per cent amid speculation of crop shortage in 2020-21. India imports low-quality raw jute from Bangladesh but jute mills in the neighbouring country had sought a ban on such exports for steady supply in their units,” industry sources told PTI. Meanwhile, the Jute Balers' Association had urged the Centre to withdraw the control measure imposed by jute commissioner on raw jute holding, saying that it will prevent farmers from getting remunerative prices.