Home / Knowledge / News / Textiles / Jute mills default on Govt supplies
Jute mills default on Govt supplies
07
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

Textiles | On 23rd Mar 2017

South Korean Samil Spinning acquires Buhler Quality Yarns

South Korean yarn producer Samil Spinning has acquired US based...

Apparel/Garments | On 23rd Mar 2017

E-retailers to pay up to 1% TCS under GST

E-retail marketplaces will need to deduct up to 1 per cent tax...

Textiles | On 23rd Mar 2017

Lanxess to expand chemical intermediates capacity

The Advanced Industrial Intermediates business unit of German...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Giorgio Mantovani
Corman S.p.A

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search