Raw jute supply for Indian jute mills was expected to have limited impact despite Bangladesh having lifted ban of raw jute exports with effect from April 3
Kolkata: Raw jute supply for Indian jute mills was expected to have limited impact despite Bangladesh having lifted ban of raw jute exports with effect from April 3.
"The impact will be limited for various reasons. The announcement of lifting ban came too late for the current season. Moreover, landed cost of jute will be almost similar of domestic raw jute price," former Indian Jute Mills Association Chairman and jute industry veteran Sanjay Kajaria told PTI.
However, he said it has to be seen how market behaves though lifting of the ban could have some impact on supply, he added.
Jute industry officials said that the measures taken by the government were not adequate and too slow to stem the spiraling raw jute prices in domestic market.
Jute Commissioner's office has taken some measures like fixing raw jute price and jute bags, taken action against a few jute mills for violating jute stock limit order.
"We have found violation in cases of against at least four jute mills for keeping surplus stock than permissible limits and we have asked the state enforcement department to take action," Jute Commissioner Subrata Gupta said.
The sharp spike in raw jute price has affected jobs in Bengal as several mills have closed, rendering thousands jobless.