10,000 quintals of raw jute seized in anti-hoarding drive in Bengal; industry flags supply woes
The Office of the Jute Commissioner on Tuesday said it has seized around 10,000 quintals of raw jute from multiple districts of West Bengal as part of a crackdown on hoarding and black-marketing.
The seizures were carried out under the Jute and Jute Textiles Control Order, 2016, following inputs that certain traders, balers and stockists were hoarding raw jute to artificially inflate prices. The seized stocks were recovered from 16 godowns across Malda, Murshidabad, North 24 Parganas and Nadia districts, and were found to be in excess of the statutory stock limits prescribed by the Jute Commissioner, according to an official release.
The action was aimed at ensuring equitable supply of raw jute to mills and protecting the livelihoods of jute mill workers. The Jute Commissioner has initiated legal action against the alleged hoarders, including lodging complaints with the Enforcement Branch of the West Bengal Police for registration of FIRs. Seizure reports have also been forwarded to the respective district magistrates, who are empowered to confiscate the goods, the release said.
However, industry stakeholders cautioned that the enforcement drive could worsen the ongoing raw material crisis faced by jute mills. A senior official of a jute balers’ association said raids against hoarding had been taking place for the last few weeks. “Once raw jute is seized, it does not return to the market immediately. It can take another six months or more due to due process, which will further tighten availability,” the official said, adding that mills were already struggling with acute shortages.
An industry official suggested that instead of prolonged confiscation, the Government should levy penalties on errant traders and arrange for the confiscated raw jute to be supplied to jute mills to support production. Several jute mills have already shut operations, while others have been forced to scale down production sharply due to raw jute shortages and price shooting above Rs 13,000 per quintal, industry representatives claimed.
