Centre forks out extra Rs 2,000 cr for jute bag procurement; mills worry might not meet goal on account of curbs on workforce


The Centre yearly buy 10-12 lakh tonne of jute luggage valued at Rs 5,500 crore to pack meals grain and sugar. However this yr, costs have crossed Rs 8,500 a quintal as of date, and uncooked jute shortage has led house owners to close their mills.

The Centre has spent an extra Rs 2,000 crore to obtain jute luggage throughout the just lately concluded season. This has, nevertheless, not prevented the closure of 9 jute mills (involving greater than 50,000 employees) of the whole 72 in West Bengal.

The Centre yearly buy 10-12 lakh tonne of jute luggage valued at Rs 5,500 crore to pack meals grain and sugar. However this yr, costs have crossed Rs 8,500 a quintal as of date, and uncooked jute shortage has led house owners to close their mills.

The second wave of Covid-19 has aggravated the state of affairs, with the Centre ordering mills to run with 50% of the workforce.

The Indian Jute Mills Affiliation (IJMA) dedicated to supplying jute luggage equal of seven.3 lakh bales to the federal government between April and June. However millers worry they are going to be unable to take action due to the decrease workforce. This will additionally result in closure of extra jute mills since with out economies of scale, they could not stay viable for operation, an IJMA member mentioned, on the situation of anonymity.

Deputy jute commissioner Koushik Chakraborty mentioned the textile ministry and the division of meals and public distribution will shortly meet to discover a means out to make up for the scarcity. The IJMA may even be consulted.

The JPM Act of 1987 has a provision of diluting as much as 30% of the whole jute bag requirement with HDPE luggage in case of a shortfall. To extend the share of dilution, the textile ministry requires approval from the cupboard committee on financial affairs. “However it’s a prolonged course of. We’d ask the meals and the general public distribution division to do their storage with previous sacks,” Chakraborty mentioned.

In accordance millers underneath IJMA, the rise in uncooked jute worth may have been checked had the jute commissioner intervened in August final yr. However the commissioner’s de-hoarding drive got here late and diminished holding uncooked jute inventory within the mills from the equal of two months to 1 month. This forcibly inflicted losses on jute mills as fibre costs are constantly on the rise, an IJMA assertion mentioned.

Nearly 60,000 hectares of jute crop was destroyed, forcing jute mills to cease manufacturing for 3 months. The commissioner issued notices to jute mills to fulfil their bag provide commitments with the federal government, however 30 jute mills finally defaulted.

Chakraborty mentioned the commissioner has already issued present trigger notices to those that have wilfully defaulted.

Get stay Inventory Costs from BSE, NSE, US Market and newest NAV, portfolio of Mutual Funds, Take a look at newest IPO Information, Greatest Performing IPOs, calculate your tax by Revenue Tax Calculator, know market’s High Gainers, High Losers & Greatest Fairness Funds. Like us on Fb and comply with us on Twitter.

Monetary Categorical is now on Telegram. Click on right here to hitch our channel and keep up to date with the newest Biz information and updates.





Supply hyperlink

Leave a Reply

Your email address will not be published.