The central government has issued control order in the wake of alleged jute hoarding, which has created artificial shortage in the supply of the raw material to mills.
The notification for control has been issued, Jute Commissioner (JC) Subrata Gupta told PTI.
The order was issued on November 24 after a meeting with Union Textile Minister Santosh Gangwar and West Bengal Labour Minister Malay Ghatak.
It would empower the Jute Commissioner's office to crack down on hoarders.
The JC has recommended one to seven years imprisonment against jute mill owners violating the Jute Control Order and the Essential Commodities Act in view of the raging raw jute crisis in West Bengal due to hoarding of the commodity.
Because of the crisis, 12 jute mills in the state have already closed down and over 50,000 workers have been rendered jobless.
Raw jute prices have surged by an unprecedented 30.5 per cent and are off-limits to most jute mills.
According to the order, jute mills would have to maintain raw jute stock of only eight weeks (two months) or below in their godowns and stop fresh purchase of raw jute.
Exports had been kept out of the control order, industry sources said.
In 2015-16, raw jute production may fall by almost 30 per cent to 60-65 lakh bales because of poor monsoon and crop damage encouraging hoardings, jute mill owners said.
The crisis may encourage government for dilution of around four lakh bales, hitting hard on Bengal's jute mills and triggering more job loss.
