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E-payments don't enthuse jute workers

Before de-monetisation, workers used to get their wages in cash while miscellaneous payments such as provident fund were done through cheques

Jayajit Dash  |  Bhubaneswar 

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu (Photo: Reuters)
A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu (Photo: Reuters)

Despite the sector’s attempt at paying wages to 250,000-odd through electronic transfer to their bank accounts, a section of the are likely to face hardship as they don’t have bank accounts. Even those with bank accounts insist on receiving payment through as they don’t want to go through the trouble of queuing up at bank ATMs to withdraw money. 

“We have attempted to overcome the prevailing crisis by crediting wages to the workers' bank accounts. But, the want lump sum wages on a fortnightly basis. The present limit on withdrawal at banks will not ease their woes,” said a mill owner, who did not wish to be identified. 

On an average, a worker gets Rs 400 a day. 80% of the 250,000-odd in producing states are concentrated in West Bengal. Before de-monetisation, used to get their wages in while miscellaneous payments such as provident fund were done through cheques. 

The other challenge for the industry is to ensure payments to who don’t have bank accounts. This category, which constitutes around 10% of the total workforce, comprises floating workmen hired by agents. They are unregistered and don’t have the requisite documents to open bank accounts.

Raghav Gupta, chairman of Indian Mills Association (IJMA), said: “For the unregistered workers, we’re holding special camps to open bank accounts. Payments to around 80% of the have already been made and the rest will be covered shortly.” 

Gupta admitted the raw trade revival remains a matter of concern due to squeeze in supply of currency notes. “Unless the JCI (Corporation of India) takes up commercial operations, the revival of raw appears bleak. Paucity of has affected trading but we are trying to sort it out,” he added. 

Normally, raw trade worth Rs 400 crore is transacted between November and January of each crop year. But, the ban on old currency notes has crippled trading. Only 35% of the raw is procured till now. Traders were unable to procure the new crop or take delivery of raw booked earlier as had dried out. Being a cash-dominated business, trading had plunged into a crisis despite the availability of nine million bales (one bale is 180 kg) to meet the domestic demand.

To tide over the crisis, has suggested that the Union ministry of textiles provide adequate capital to finance raw purchase on a commercial basis by JCI. Although has not divulged the figure, an industry estimate pegs the fund size at Rs 400 crore. 

E-payments don't enthuse jute workers

Before de-monetisation, workers used to get their wages in cash while miscellaneous payments such as provident fund were done through cheques

Before de-monetisation, workers used to get their wages in cash while miscellaneous payments such as provident fund were done through cheques
Despite the sector’s attempt at paying wages to 250,000-odd through electronic transfer to their bank accounts, a section of the are likely to face hardship as they don’t have bank accounts. Even those with bank accounts insist on receiving payment through as they don’t want to go through the trouble of queuing up at bank ATMs to withdraw money. 

“We have attempted to overcome the prevailing crisis by crediting wages to the workers' bank accounts. But, the want lump sum wages on a fortnightly basis. The present limit on withdrawal at banks will not ease their woes,” said a mill owner, who did not wish to be identified. 

On an average, a worker gets Rs 400 a day. 80% of the 250,000-odd in producing states are concentrated in West Bengal. Before de-monetisation, used to get their wages in while miscellaneous payments such as provident fund were done through cheques. 

The other challenge for the industry is to ensure payments to who don’t have bank accounts. This category, which constitutes around 10% of the total workforce, comprises floating workmen hired by agents. They are unregistered and don’t have the requisite documents to open bank accounts.

Raghav Gupta, chairman of Indian Mills Association (IJMA), said: “For the unregistered workers, we’re holding special camps to open bank accounts. Payments to around 80% of the have already been made and the rest will be covered shortly.” 

Gupta admitted the raw trade revival remains a matter of concern due to squeeze in supply of currency notes. “Unless the JCI (Corporation of India) takes up commercial operations, the revival of raw appears bleak. Paucity of has affected trading but we are trying to sort it out,” he added. 

Normally, raw trade worth Rs 400 crore is transacted between November and January of each crop year. But, the ban on old currency notes has crippled trading. Only 35% of the raw is procured till now. Traders were unable to procure the new crop or take delivery of raw booked earlier as had dried out. Being a cash-dominated business, trading had plunged into a crisis despite the availability of nine million bales (one bale is 180 kg) to meet the domestic demand.

To tide over the crisis, has suggested that the Union ministry of textiles provide adequate capital to finance raw purchase on a commercial basis by JCI. Although has not divulged the figure, an industry estimate pegs the fund size at Rs 400 crore. 
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Business Standard
177 22

E-payments don't enthuse jute workers

Before de-monetisation, workers used to get their wages in cash while miscellaneous payments such as provident fund were done through cheques

Despite the sector’s attempt at paying wages to 250,000-odd through electronic transfer to their bank accounts, a section of the are likely to face hardship as they don’t have bank accounts. Even those with bank accounts insist on receiving payment through as they don’t want to go through the trouble of queuing up at bank ATMs to withdraw money. 

“We have attempted to overcome the prevailing crisis by crediting wages to the workers' bank accounts. But, the want lump sum wages on a fortnightly basis. The present limit on withdrawal at banks will not ease their woes,” said a mill owner, who did not wish to be identified. 

On an average, a worker gets Rs 400 a day. 80% of the 250,000-odd in producing states are concentrated in West Bengal. Before de-monetisation, used to get their wages in while miscellaneous payments such as provident fund were done through cheques. 

The other challenge for the industry is to ensure payments to who don’t have bank accounts. This category, which constitutes around 10% of the total workforce, comprises floating workmen hired by agents. They are unregistered and don’t have the requisite documents to open bank accounts.

Raghav Gupta, chairman of Indian Mills Association (IJMA), said: “For the unregistered workers, we’re holding special camps to open bank accounts. Payments to around 80% of the have already been made and the rest will be covered shortly.” 

Gupta admitted the raw trade revival remains a matter of concern due to squeeze in supply of currency notes. “Unless the JCI (Corporation of India) takes up commercial operations, the revival of raw appears bleak. Paucity of has affected trading but we are trying to sort it out,” he added. 

Normally, raw trade worth Rs 400 crore is transacted between November and January of each crop year. But, the ban on old currency notes has crippled trading. Only 35% of the raw is procured till now. Traders were unable to procure the new crop or take delivery of raw booked earlier as had dried out. Being a cash-dominated business, trading had plunged into a crisis despite the availability of nine million bales (one bale is 180 kg) to meet the domestic demand.

To tide over the crisis, has suggested that the Union ministry of textiles provide adequate capital to finance raw purchase on a commercial basis by JCI. Although has not divulged the figure, an industry estimate pegs the fund size at Rs 400 crore. 

image
Business Standard
177 22

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