In a letter to the Union government, Basu has said that owing to bumper crop this year raw jute prices are falling steadily, forcing growers to resort to distress sales.
This year's raw jute production is estimated to cross 10 million bales.
Basu said the Union government should declare remunerative price for raw jute to provide relief to growers.
Federation of Chatkal Mazdoor Union (FCMU) secretary Debasish Dutta affiliated to All India Trade Union Congress (AITUC) said yesterday that the minimum support price (MSP) of Rs 510 per quintal for raw jute announced by the Union government for this season was not realistic.
Besides, the MSP had had no effect in the rural markets because JCI had not been allowed to intervene. He said that the Union government had not engaged JCI for the last four years to operate in the rural markets.
As a result, speculators had harmed the jute growers who did not get the remunerative price.
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On the other hand, there was a scarcity of raw jute and also an abnormal rise in the prices.
Dutta said jute mills had reduced the number of shifts, pleading scarcity of raw jute and high prices.
The mill owners were now trying to reduce their shifts further which would throw nearly 50,000 employees out of job.
He said that JCI was now suffering from a severe funds crunch because it was yet to receive around Rs 130 crore due from the Union government on account of the failure of the National Jute Manufactures' Corporation (NJMC) to clear its bills for supplies.
Besides, the Union government did not pay JCI's dues for the MSP operation. If this fund was immediately available, JCI could resume such operation.
Dutta said that FCMU had planned a demonstration before the office of the Jute Commissioner on September 9 demanding immediate engagement of JCI for MSP operation and remunerative price for raw jute. FCMU would submit a memorandum to the Jute Commissioner in this matter.