The Jute Industry of the country is taken aback after learning that the Union Ministry of Textiles (MoT) is pondering over the proposal of allowing the Jute Corporation of India (JCI) to get B.Twill, a variety of raw jute this season, through Commercial Purchases (CP) operation.
Sources informed Fibre2fashion that, Jute Corporation of India (JCI) is purchasing raw jute on minimum support price (MSP). At present the cost of jute from Assam is nearly Rs1250 per quintal. Whereas, in 24 Paraganas, Siliguri and Hugli District in West Bengal, the price is Rs1313 per quintal. Till now JCI has purchased almost 2000 Quintal of B Twill that is mainly used for packaging purposes.
In 2007, the production was approximately 95 Lakh bales, however, this year it is expected to drop down to only 75 Lakh bales. Industry insiders believe that, this shortage may shoot up the prices of B Twill jute and take them to Rs150 to 200 high, per quintal.
The entrepreneurs have shown their worry over the recent progress and feel that they will have to rise the price of B Twill bags that are to be purchased compulsorily by the DGS&D on behalf of FCI and other state agencies as per the statutory Jute Packaging Materials Act. This will automatically hike the packaging cost of food grains that are being distributed through PDS.
This decision of Government is in contradiction with what it had taken in year 2005-06, when JCI was permitted to procure jute through CP and MSP operation and was even allowed to sell the same through B Twill linking to jute mills.
Fibre2fashion News Desk - India
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