With indications of raw jute and B Twill jute bags prices going out of control, the office of the jute commissioner has stressed on imposing stock limits at jute mills. It has also proposed to peg a ceiling on B Twill jute bag prices.
Abetted largely by hoarding and price manipulation of some mill owners and traders, raw jute rates have touched an unprecedented high rate of Rs 49,000 a tonne, 75 per cent higher over Rs 28,000 a tonne a year ago. “Prices of raw jute and consequently B Twill bags have shot up mainly on hoarding. The jute commissioner’s office has solicited our views on fixation of stock limits and also the upper limit on B Twill bags prices,” said Manish Poddar, chairman of Indian Jute Mills Association (IJMA). The abnormal price rise of raw jute, and the subsequent rise of B Twill bag prices, have put buyers under stress. This apart, the alleged non-availability of raw jute in mills has contributed to the backlog of close to 142,000 bales (one bale is 180 kg), as on October 31 this year.
“If this situation continues, there could be severe impact on the jute industry as well as food grains procurement. The ministry of food is examining invocation of dilution in view of the backlog and the raw jute availability issues”, Dipankar Mahto, deputy jute commissioner, stated in a letter to the IJMA chairman.
It has proposed fixing the ceiling on B Twill bag prices at which the government would procure these for sacking.
It has also asked for a reasonable price for raw jute.
The Andhra Pradesh Mesta Twine Mills Association (APMTMA) feels some mills and traders are using a predatory approach to increase prices gradually and restrict supply, so that sick mills shut down and a few better-performing ones get benefit at the expense of the closure.
In a letter to the West Bengal labour minister and the jute commissioner, APMTMA said certain mills have got into predatory competition in increasing raw jute prices as 80 per cent of the mills have stock for less than three weeks.
APMTMA has suggested a joint de-hoarding drive by West Bengal government and the jute commissioner's office. It has also backed an inquiry by the Competition Commission of India (CCI) on increasing raw jute prices and supply restrictions.
Abetted largely by hoarding and price manipulation of some mill owners and traders, raw jute rates have touched an unprecedented high rate of Rs 49,000 a tonne, 75 per cent higher over Rs 28,000 a tonne a year ago. “Prices of raw jute and consequently B Twill bags have shot up mainly on hoarding. The jute commissioner’s office has solicited our views on fixation of stock limits and also the upper limit on B Twill bags prices,” said Manish Poddar, chairman of Indian Jute Mills Association (IJMA). The abnormal price rise of raw jute, and the subsequent rise of B Twill bag prices, have put buyers under stress. This apart, the alleged non-availability of raw jute in mills has contributed to the backlog of close to 142,000 bales (one bale is 180 kg), as on October 31 this year.
“If this situation continues, there could be severe impact on the jute industry as well as food grains procurement. The ministry of food is examining invocation of dilution in view of the backlog and the raw jute availability issues”, Dipankar Mahto, deputy jute commissioner, stated in a letter to the IJMA chairman.
Also Read
The jute commissioner’s office has called for imposition of raw jute stock limits, prescribing a stock of three weeks raw jute consumption in mills.
It has proposed fixing the ceiling on B Twill bag prices at which the government would procure these for sacking.
It has also asked for a reasonable price for raw jute.
The Andhra Pradesh Mesta Twine Mills Association (APMTMA) feels some mills and traders are using a predatory approach to increase prices gradually and restrict supply, so that sick mills shut down and a few better-performing ones get benefit at the expense of the closure.
In a letter to the West Bengal labour minister and the jute commissioner, APMTMA said certain mills have got into predatory competition in increasing raw jute prices as 80 per cent of the mills have stock for less than three weeks.
APMTMA has suggested a joint de-hoarding drive by West Bengal government and the jute commissioner's office. It has also backed an inquiry by the Competition Commission of India (CCI) on increasing raw jute prices and supply restrictions.