The Center reduces the stock of raw jute to facilitate supply to the mills.

Kolkata: The Center has further reduced the stockpile of raw jute for balers and traders to augment the supply of raw materials to mills at a time when large food producing states have been given environmentally friendly packaging materials. Facing shortages, industry stakeholders said. on Sunday.

In a recent notification issued by the Jute Commissioner’s Office, the maximum stock limit for jute balers has been reduced from 750 quintals to 500 quintals and for traders from 150 quintals to 50 quintals.

This is the second such move by authorities this year.

“In January, the government reduced the limit of raw jute from 1500 quintals to 750 quintals. It has now been reduced to 500 quintals. Jute Balers Association Secretary AK Palit told PTI that It is not a viable option for him to run his business easily.

The balers are the major suppliers of raw jute to the mills.

The ongoing raw material crisis has “shut down about 15 mills and reduced the use of units that are still in operation”, an industry source claimed.

Industry stakeholders said that the Center has set a limit on the stock limit with a view to curb the stockpiling of raw jute in the market and facilitate the supply of goods to the mills at reasonable prices.

He claimed that the price of raw jute was hovering around Rs. 7,000-7,200 per quintal, but the government would pay Rs. 6,500 per quintal as raw material for the production of bardana.

The move to curb hoarding has not had much effect in improving the supply of key raw materials to jute mills.

Meanwhile, the Commission on Agricultural Costs and Prices (CACP) has recommended that JCI, a government body that buys raw jute, should increase its access to spot procurement directly from the villages. Take proactive steps because it will help you find competitive prices.

Recently, the Ministry of Textiles estimated the shortage of jute bags and advised the authorities to consider ordering plastic bags.