Can't revise price for illegitimate gain of some players: Jute Commissioner

He denied allegations of neglect of West Bengal's jute industry

Jute bags, eco friendly bags
Several jute mills have downed shutters in the past few months reportedly due to unavailability of raw jute at the price fixed by the JCO.
Press Trust of India Kolkata
3 min read Last Updated : Apr 26 2022 | 11:01 PM IST

The Jute Commissioner's Office (JCO), which is under attack from various quarters for unavailability of raw materials at the price fixed by the government, on Tuesday said it continues to safeguard farmers' interests but cannot allow "illegitimate" gains for a section of players in the industry by revising the price cap.

The JCO, which looks after orderly development and promotion of the industry in India, also stated that no decision was made as of now to alter the raw jute price fixed at Rs 6,500 per quintal amid allegations that mills are not getting the golden fibre below Rs 7,000 per quintal amid the bumper crop of 90 lakh bales in the 2021-22 season.

"No farmer or farmers' body has complained about price fixation. If relaxed, it will have illegitimate gain for a certain section of the industry," Jute Commissioner Moloy Chakraborty told a press conference here.

He denied allegations of neglect of West Bengal's jute industry.

BJP MP Arjun Singh, whose constituency Barrakpore has 20 jute mills, had on Monday slammed the central government for neglecting the state's jute industry. He also supported ruling TMC supremo and Chief Minister Mamata Banerjee's demand for removal of the price cap on raw jute to current market-driven prices to support farmers.

"There is a lot of misinformation around. Almost 95 per cent of farmers are marginal and they have already diluted their produce. The majority of the raw jute is now with traders and middlemen," Chakraborty said.

He said that the raw jute price was fixed at Rs 2,000 over and above the minimum support price (MSP) of Rs 4,500 per quintal and it is quite reasonable for the farmers.

To a question on de-hoarding of the golden fibre, the jute commissioner said it is up to the state agencies to step up their action. State enforcement officials claimed that the JCO has not been able to provide a "verified" jute traders list yet.

After Chakraborty's press conference, Arjun Singh claimed that the JCO "painted an untrue picture to satisfy his bosses by ruining the future of millions of workers and farmers"

Several jute mills have downed shutters in the past few months reportedly due to unavailability of raw jute at the price fixed by the JCO.

The claim that the state government had earlier accepted Rs 6,000 per quintal rate is "false as it was temporary because the price had shot up to Rs 9,000 per quintal due to Amphan calamity" in 2020, the BJP MP asserted in a statement.

Earlier this month, Trinamool Congress Chief Whip in the Rajya Sabha, Sukhendu Sekhar Ray, sought the intervention of the Centre to resolve the jute crisis claiming that 60,000 workers have lost their jobs following the closure of 15 jute mills.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Topics :JuteJute policy

First Published: Apr 26 2022 | 11:01 PM IST

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