Centre to cap stockholding of raw jute, act against hoarders

After facing public outcry over rise in prices of essential commodities, the Centre has taken a note of rise in prices of raw jute. The NDA government led by Prime Minister Narendra Modi has decided to impose stockholding limit and take action against hoarders as part of its measures to boost domestic supply and control rates of raw jute.

In another decision aimed at controlling the jute prices, the Textile Ministry has requested the commerce department and external affairs ministry to persuade the Bangladeshi government to lift their month-long raw jute export ban after a steep rise in prices.

The decisions were taken by Union Textiles Minister Santosh Gangwar at a meeting with stakeholders on November 23 to evolve a strategy for stabilising the raw jute prices, an official statement said.  A three-pronged strategy has been formulated by the government.

“Jute Commissioner has been requested to take appropriate measures for notifying stock limits for raw jute for balers, traders and millers and to undertake de-hoarding measures with the help of state governments, so that jute produced during the season becomes available for jute mills for continuing their production,” the Textiles Ministry said.

The ministry has also asked the Ministries of Commerce and External Affairs to take up the matter with Bangladesh for lifting the ban on export of raw jute by the neighbouring country. That apart, the Centre has decided to take appropriate long term measures to boost jute cultivation in the country. Raw jute prices have also rose sharply in the last one year.  

“Last year in September the raw jute price was 2,800 per quintal whereas the prevailing price is 4,900-5,000 a quintal. Due to anticipated shortage of jute, hoarders are holding huge stocks,” Indian Jute Mills Association Chairman Manish Poddar said.

According to Agriculture Ministry data, jute production in the country stood at 109.34 lakh bales of 180 kg each in 2014-15.