The Punjab government, the biggest indenter of B Twill jute bags and the government supply agency- Directorate General of Supplies and Disposal (DGS&D) are at loggerheads over the issue of alleged non-delivery of 41,000 bales of jute bags.
Sources said, the Punjab government has indirectly accused DGS&D of violating a standing government order on supplies of B Twill jute bags in favour of a section of the jute industry.
The non-delivery of 41,000 bales of B Twill jute bags against the indent placed in November and December 2009 by the DGS&D has caused resentment within the Punjab government. Industry sources have informed that the order has been cancelled
Subsequently, the Punjab government made it clear that it would be hesitant to go for placing orders for the Kharif season of 2010-11 if the backlog of supplies is not cleared.
Industry insiders have suspected a nexus between some mill owners and officers of DGS&D based in Kolkata. The jute industry is sharply divided over the issue of cancellation of the order of the Punjab government but the issue has been kept under wraps.
When contacted Manish Poddar, chairman, Indian Jute Mills Association (IJMA), said, “There are no pending orders and there have been no irregularities in supplies of B Twill jute bags. The jute industry is also committed to make supplies in full swing in the Kharif marketing season for 2010-11.”
Binod Kispotta, the Jute Commissioner declined to comment on the issue.
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At a high-level review meeting held on March 30, a decision was take on disapproving the requests of the Jute Commissioner to cancel the pending indents of the Punjab government for November and December 2009 and place fresh indents.
The meeting had decided that the DGS&D and the jute industry may be asked to supply B Twill jute bags to the Punjab government against its pending indents of November and December 2009 at old rates. The contentious issue here is the insistence of the Punjab government to buy the B Twill jute bags at the rates prevailing in November-December 2009. Punjab alone accounts for nearly 60 per cent of departmental indents placed on DGS&D during the Rabi marketing season and Kharif marketing season in a year.
When the jute mills resumed operations on February 14, 2010 after the end of a two-month old strike, they started clearing backlog of jute bag supplies but the Punjab government stuck to the delivery of 41,000 bales at old rates.
However, industry sources have revealed that the jute industry was issued production control orders in November and December last year and the combined production cut in these two months came to 2.62 lakh bales thereby affecting supplies.