Jute traders want pricing formula to continue

With the government putting a ceiling on purchase price for sacking bags for January, jute mills today said they are exploring "all options" to oppose the decision and demanded continuation of existing pricing formula.
"Jute Commissioner capped B-Twill sacking price of December 2015 for January 2016 on adhoc basis. We want the current formula of pricing to continue," Indian Jute Mills Association (IJMA) chairman Manish Poddar told PTI.
Asked whether IJMA was planning to going to court, Poddar said the body was exploring all options.
Industry sources said according to the formula of pricing for government supply of jute bags, the rate for January should have been Rs 83,000 per tonne against December supply price at around Rs 79,000 per tonne.

Unable to control raw jute prices, the Centre has decided to cap prices in the procurement of jute bags under Jute Material Packaging Act for January as a tool to check increasing government subsidy, a notification dated January 14 from Jute Commissioner's office said.
The notification came after Ministry of Textiles advised capping the price of jute sackings.