Jute mills may face ban or downsizing of govt orders over Rs 1,950-cr dues

Almost 200,000 workers are engaged in 77 jute mills

Jute mills saddled with outstanding dues to financers, operational creditors and workers may face stern action from the Textiles Ministry.

The ministry is likely to either proscribe such jute mills, or truncate orders for packaging food grains under the Jute Packaging Materials Act, 1987, a source close to the development said.

The Jute Commissioner has already shot a notice to jute mills, seeking no-default undertakings on non-judicial stamp papers for statutory payments of gratuity, provident fund and ESI dues to workers.

Food Corporation of India (FCI) and state food agencies of Punjab, Haryana and Chattisgarh are the biggest buyers of