Jute balers urge govt to reconsider order reducing stock limit

Jute balers have urged the government to reconsider an order asking them to reduce their stock limit to 750 quintals per godown, claiming it will not solve the crisis of the industry which is already under strain.In order to increase supply to mills, the Jute Commissioner recently allowed balers to stock a maximum of 750 quintals of golden fibre in each godown.

Jute balers have urged the government to reconsider an order asking them to reduce their stock limit to 750 quintals per godown, claiming it will not solve the crisis of the industry which is already under strain.

In order to increase supply to mills, the Jute Commissioner recently allowed balers to stock a maximum of 750 quintals of golden fibre in each godown. The quantum is 50 per cent of the previous permitted stock limit, balers said adding that a single godown is run and operated by several balers on cost-sharing basis. ''... the combined stock limit of 750 quintals for multiple balers in one godown is too little to run the baling operations by an individual baler,'' the Jute Balers' Association said in a letter to the Jute Commissioner. Half of the stock limit of 750 quintals will consist of unsaleable jute for which there are no buyers, the letter claimed.

The balers' body said the issue now is of price and not of supplies.

The regulator, Jute Commissioner, last year imposed a price cap of Rs 6500 per quintal on raw jute. Millers said this is leading to financial losses for them and supply commitment failure as the current market rate is above Rs 7000 per quintal. Several mills have downed shutters recently.

''Supply is abundant and better than previous years at this time of the year. Most of the mills have closed down due to non-payment of raw jute dues and not for inadequate supplies,'' the letter read.

It stated that purchase of raw jute by Nepal from North Bengal is influencing the price.

Meanwhile, industry sources said the recent budget allocation of Rs 115 crore for the development of the jute sector is ''meagre''.

It was initially Rs 153 crore last year but the allocation was later revised to Rs 112 crore, they said.

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