Home / Knowledge / News / Textiles / Jute mills default on Govt supplies
Jute mills default on Govt supplies
Jul '10
By selling off 41,730 bales of B-Twill jute bags at a cost higher than the market price and also failing to meet with their delivery promise, which was made to the Punjab Government last year in December, 33 jute mills have turned defaulters in the Government of India's (GoI's) list, thereby, pushing the already besieged jute industry in yet another fresh controversy.

Punjab, apparently, is the biggest buyer of B-Twill jute bags in India, totaling for more than 65 percent of the jute sacks market, and the approximate size of this is assumed to be around Rs 60 billion. Haryana, Uttar Pradesh, Orissa, Bihar and Chattisgarh, are the other foremost buyers of such variety of bags.

Sources reveal that, GoI is most likely to commence stringent action against the corrupt jute mills, if they fail to provide the pending supplies of 41,730 bales of B-Twill jute sacks to Punjab by July 7, 2010, at the initial price, which was quoted in the months of November and December 2009.

Government might also discontinue future orders and withdraw the existing orders, if the defaulting jute mills do not follow these orders.

However, if the defaulters work as per the government orders then, they will have to face a loss of Rs 12,000 per ton of jute bags, as against the current prices. But on the other aside are also those mills, who are likely to fall in line with the government orders, so as to avoid the latter's anger and penalizing actions, that might come out in the future.

With government pondering over cracking down on jute mills, not complying with their orders, Indian Jute Mills Association (IJMA), apex body of the jute industry, is currently facing tough times.

Fibre2Fashion News Desk - India

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Textiles | On 22nd Oct 2016

Kazanorgsintez picks Technip’s furnace for ethylene plant

Supplier of technology for petrochemical plants, Technip has been...

Textiles | On 22nd Oct 2016

Clariant start ups PP catalyst plant with CB&I technology

Clariant has started up a new polypropylene (PP) catalyst production...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search