Jute mills challenge compulsory linkage

The Indian Jute Mills Association, the apex body of jute mills in the country, has moved the Calcutta High Court challenging the textiles ministry's order that asked them to compulsorily purchase up to 80 per cent of raw jute from the Jute Corporation of India against delivery of B. Twill bags to various government procurement agencies.

In its petition, IJMA has sought clarification from the court whether the jute commissioner is empowered to delegate his powers of price fixation to JCI or anyone else under the Clause 3 of the Jute & Jute Control Order 2000, an official of IJMA said.

IJMA has also sought clarification on whether the jute commissioner can provisionally fix the price of B. Twill jute bags and direct purchase of raw jute at the price to be fixed by the JCI, he said.

The IJMA has also challenged whether JCI is empowered to purchase raw jute at commercial rates and whether the Jute and Jute Control Order 2000 Amendment Act 2002 entitle the purchase of raw jute commercially and on the basis of MSP and at the average price of preceding three months.

The matter was to come up for hearing Wednesday, but could not be heard as the judge was ill and is likely to be heard on Monday-Tuesday, the official said.The petitions comes in the wake of Textiles Ministry order to mills asking them to purchase 80 per cent of raw jute from JCI at a price much higher than market price.