Private sector must invest in labour-oriented industries to create jobs: Piyush Goyal

Piyush Goyal has urged the private sector to invest in labour-oriented industries.

New Delhi: Commerce and industry minister Piyush Goyal, on Friday (January 21), urged the private sector to invest in labour-oriented industries. According to the minister, the investments could create jobs in sectors like plastics, footwear, textiles, and leather, among others.

Speaking on the sidelines of the Merchants’ Chamber of Commerce & Industry (MCCI), Goyal said that he believes that raw jute is being hoarded leading to a crisis in the sector, but will examine if some relaxations could be offered on the stock limit for export orders. 

The assurance from the minister came at a time when the Indian Jute Mills Association initiated legal steps against the government for a resolution to the raw jute crisis. The recent crisis has led to financial losses for the millers and supply commitment failure.

The minister also said the government cannot offer support to the jute sector by way of mandatory packaging and continues to pay higher prices due to hoarding.

“We will get it examined with the Jute Commissioner and see if stock relaxation can be offered for exports,” he replied to a question on the current restriction by the regulator to stock raw jute by a mill to a maximum of 45 days.

Goyal has also sought suggestions from stakeholders for reforms in the jute sector to protect the interest of farmers. "We have long term export commitments for a period between six and 12 months, while a stock limit of just 45 days results in financial risk,? Fort Gloster MD Hemant Bangur said. Also Read: Instagram to reduce visibility of 'potentially harmful' content

On the other hand, MCCI members lauded Goyal for inviting State Bank of India’s officials during the interaction to solve the problem of tea gardens in Assam. The organisation pointed out that there are only 100 ATMs for around 800 gardens. Also Read: PFRDA to discuss with Centre proposal to hike equity exposure in NPS to 75% for govt employees