Measures To Stanch Jute Price Crash Urged

The Jute Balers Association has urged the government to take strong measures to control the crash in raw jute prices for most grades which had gone below the minimum support level.

The association vice-president, Khetulal Pugalia, said the crash in raw jute prices had resulted in severe losses to the growers on their holdings of raw jute and added that these would also adversely affect them when the new crop arrives after about a fortnight. "If the government fails to take immediate steps the consequences will be felt when growers divert to other more-remunerative crops, Pugalia said.

"After being assured of a successive bumper crop, the industry, despite a good profit margin wilfully reduced its stock of raw jute to less than minimum required to send raw jute prices crashing," the statement alleged.

 

The statement called for imposition of the compulsory buying quota for jute mills for a minimum physical stock equivalent to ten weeks' consumption and reopening of all closed jute mills soon.