Indian ministry to examine issue of stock restriction for jute exports

25 Jan '22

2 min read

Pic: Shutterstock

With the belief that raw jute is being hoarded, the Indian textiles ministry will examine if some relaxations could be offered on stock limit for export orders, according to textiles minister Piyush Goyal. The Indian Jute Mills Association (IJMA) has reportedly initiated legal proceedings against the government for a resolution to the supply commitment failure and raw jute crisis that has led to financial losses for millers.

The regulator, the jute commissioner, has imposed a price cap of ₹6,500 per quintal on raw jute and a stock limit of a maximum of 45 days.

During a virtual interaction with the members of Merchant's Chamber of Commerce and Industry (MCCI), Goyal said the government cannot offer support to the jute sector by way of mandatory packaging and continues to pay higher prices due to hoarding.

“We will get it examined with the jute commissioner and see if stock relaxation can be offered for exports,” he replied to a question on the current restriction by the regulator to stock raw jute by a mill to a maximum of 45 days.

The minister also sought suggestions for reforms in the jute sector to protect the interest of farmers, according to a news agency.

Fibre2Fashion News Desk (DS)

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