The IJMA calls for the Prime Minister’s intervention to ease the ceiling price for raw jute
Indian Jute Mills Association (IJMA) has requested the intervention of Prime Minister Narendra Modi to relax the ceiling price for raw jute so that it is at market price.
The main contentious issue before the jute industry is the price cap of Rs 6,500 per quintal imposed on the raw jute trade since September 30, 2021. Following this, the spinners claimed they could not afford raw jute below Rs 7,200 per quintal. , said the IJMA.
“Certain political decisions have made this industry, which employs more than 2.5 lakhs of workers and supports 40 lakhs of farming families, completely unsustainable,” IJMA president Raghavendra Gupta said on Monday in a statement. letter addressed to the Prime Minister.
More than three months have passed since the ceiling price of Rs 6,500 per quintal was imposed and raw jute has not been made available at that price, even for a single day. “The going market price is Rs. 7,200 per quintal, which is the international price of raw jute exported out of Bangladesh,” he said in the letter.
Over 40 percent of the raw jute harvest is still at the micro level and farmers are reluctant to give up their produce at the price set by the Jute Commissioner. “There is every chance that the jute sector in Bangladesh will win at the expense of the Indian jute industry, if such a policy continues,” Gupta said in his letter.
He said jute mills in India are heavily dependent on the industry mandated to supply jute bags for packaging food grains to FCI and state food supply agencies. The price of these bags is made on the basis of the reasonable raw jute price set by the Jute Commisioner at Rs 6,500. At the same time, the mills have to buy jute at the market price of Rs 7,200. “This makes the entire sector financially ill and many factories have closed or are about to close, ”he said.
According to factory sources, some 10 to 12 factories have already closed due to a shortage of raw jute caused by government price controls.
Appreciating Modi’s favorable position on the manufacture of biodegradable packaging materials, IJMA said that its environmentally friendly credentials in manufacturing 100% biodegradable and multi-purpose bags would go a long way towards achieving its commitment. of zero net carbon emissions by 2O7O.
The jute industry introduced lighter 580 grams of jute bags for packaging food grains in December 2016, an IJMA official said.
The ad hoc prices for jute bags continue on this date. The Tariff Commission submitted its report on bag pricing in March 2021 but has yet to be implemented, he added.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)