JC rationalises raw material stock limit for mills to help jute sector: Sources

The Jute Commissioner's Officehas rationalised the raw jute stock limits for mills to alevel, which is equivalent to their two-month averageconsumptions, to help a section of units secure the rawmaterial, industry sources claimed on Thursday.

The jute mills were previously allowed to hold stocksof raw material equivalent to their average three-monthrequirements, they said.

The Jute Commissioner's Office, in an order issued onWednesday, fixed the maximum raw jute stock quantities for 72mills and the limits are at par with their two-month averageconsumptions, the sources said.

''We have fixed the maximum quantity of raw jute thatcan be maintained by all the 72 mills in the country. Thiswill help prevent raw jute hoarding. The West Bengalgovernment has assured us that they will support the driveagainst hoarding of the commodity,'' an official source toldPTI.

The order will remain valid till July 31 this year, hesaid.

''We welcome the raw jute stock limit order for millsas it is a positive step to ensure that the raw material issupplied for all units,'' former Indian Jute Mills Associationchairman Sanjay Kajaria said.

Another mill owner, on condition of anonymity, saidthe order came too late as many units have already incurredhuge losses.

The Jute Commissioner's Office had, in November lastyear, capped the stock holding limit at 500 quintals forstockists, suppliers and balers to ease supplies of thecommodity to mills at a reasonable price and prevent itshoarding.

The balers' body, however, had alleged that thecontrol measure made businesses of its members ''unviable''.

The government's order came at a time when the priceof the commodity soared to over Rs 6,000 per quintal,impacting the manufacturing of jute bags.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)