Jute payments to farmers' Jan Dhan accounts breach max limit, bounce back: JCI

The Jute Corporation of India Ltd today said money transferred to around 1,000 farmers for jute procurement bounced back from their Jan Dhan accounts as the maximum savings limit of such accounts is only Rs 50,000.

The company is now taking written commitment from farmers not to provide any Jan Dhan accounts during trading of jute in order to avoid any such situation in future.

"Jan Dhan accounts can have maximum capital of Rs 50,000. So, when we transfer money to farmers for jute procurement, which are usually big amounts, these get bounced. Then we again had to ask them for separate accounts or changed those to normal accounts," Jute Corporation of India (JCI) Chairman and MD KVR Murthy told PTI.

During the last financial year, deposits from around 1,000 accounts bounced back, he added.

"This figure also include some minor accounts. Due to lack of knowledge, some farmers provided account details of their minors. That is also not allowed," Murthy said.

In order to avoid repetition of such situation, the company is carrying out an awareness drive among jute farmers and taking written commitment before procurement that only normal accounts will be accepted for money transfer, he added.

The PSU jute trading company, however, achieved 100 per cent target of transferring benefits directly to the accounts of farmers during 2017-18.

Murthy informed that the corporation is expecting a flat year with sales target of Rs 180 crore, the same amount in 2017-18.

"The turnover depends on crop arrival. If the market price remains above the MSP, then it is good for us. But if the prices go lower than MSP, then we also lower our target. This year raw jute procured under MSP will rise significantly compared to 6.08 lakh quintals last year," the CMD said.

The JCI is aiming to procure 72 lakh bales of jute during the current financial year as against 81 lakh bales in last fiscal, he added.

The corporation has presence in six states of West Bengal, Bihar, Assam, Odisha, Andhra Pradesh and Tripura through 62 procurement centres.