Curbs on open market sale of jute sacks
The Office of the Jute Commissioner has imposed restrictions on jute mill owners from selling sacks and carpet cloth to private agencies and in the open market. There were reports of several jute mills selling these items to private agencies at a premium price.
In a letter to the jute mills, Deputy Jute Commissioner Dipankar Mahato has directed them to take consent from his office before selling sacks and carpet cloth to any agency and warned of action under the Jute and Jute Textiles Control Order, 2016, if they fail to comply.
According to placements of indents by government foodgrain-procuring agencies, jute mills are mandated to supply 1.09 million bales (one bale is 180 kg) till March 13. The actual supply (as on February 12, 2018), however, is only 0.7 million bales, leaving a backlog of 33.8 per cent, or 0.35 million bales. In addition, the jute mills are also required to supply around 0.6 million bales in March and April.
Manish Poddar, chairman of the Indian Jute Mills' Association (IJMA), said, “We are fully geared to meet the supply requirement for foodgrain. The jute industry is well equipped to cater to the government demand."
According to the Jute Commissioner’s office, the backlog has been created primarily due to the sale of jute sacks in the open market. According to the office, the jute industry needs to increase its manufacturing capacity and accord top priority in the manufacture and supply of B Twill jute bags on the government account.
On December 27, 2017, the Office of the Jute Commissioner had ordered the jute mills to utilise their installed sacking capacity for exclusive manufacture of B Twill jute bags. The order also restricted the jute industry from diverting supplies of sacks beyond the government's requirement.
An industry source said open market sales by jute mills were infrequent as a bulk of the B Twill jute bags were supplied to the government procurement agencies. Currently, the jute industry has a capacity to manufacture 0.4 million bales per month.