The Jute Balers' Association has urged the Centre to withdraw the control measure on raw jute holding, saying that it will prevent farmers from getting remunerative prices.
The Jute Commissioner, in an order issued on Tuesday, capped raw jute holding at 1,500 quintals on own or third party account to prevent hoarding.
The balers' body said raw jute cultivation was hit by cyclone 'Amphan' and the ongoing pandemic. Heavy rain has also caused “crop damage to the tune of 25-30 percent.”
They also stated that the jute control measure does not augur well for farmers.
The control order will restrict demand and harm farmers in receiving remunerative prices for the crop, the Jute Balers' Association said in a letter to the Prime Minister's Office.
The control order was issued after the millers alleged that raw jute prices rose by 10-15 percent in August. The mill owners had also said the surging prices would affect their operations. The balers' body said the raw jute supply chain is now “controlled by non-jute traders and brokers" who are making the market “volatile”.
Balers were traditionally supplying raw jute to mills for production but now they have been outnumbered by the brokers and traders, sources said.
The Indian Jute Mills Association had urged the Union Textile Ministry to allow the import of Bangladeshi jute for making sacks for the government procurements.
The import restrict has been imposed to protect domestic jute farmers.