KOLKATA: In the wake of large scale shortage and hoarding allegations, the government's attempt to control raw jute stocks by passing an order on holding of 500 kg of the natural fibre has invited mixed reaction from stakeholders.
The Jute Commissioner (JC) in an order on Friday had said that transactions of 500 kg of raw jute and above without registration and approval will be held void and liable for prosecution.
The government has asked traders, dealers, stockists to get themselves registered at the 'jute Smart' portal within a month. Violation of the order is punishable through prosecution and imprisonment under the jute control order and Essential Commodities Act, the order said.
"We support the registration order but the 500 kg criteria is a little harsh. After registration JC has to be very careful and judicious while imposing restrictions, taking into account long term consequences.
"Higher prices led farmers to grow more this year but again if prices fall drastically, next year we will have problem of shortage," Jute Balers Association vice-president Om Prakash Soni told PTI.
A jute farmer and raw jute aggregator in Murshidabad alleged that the step will be detrimental for farmers.
"The order is harsh and registration for such low quantities is irrational. Farmers will have less bargaining power. In last season there was competition among buyers as anyone could buy. With the new order, a large number of new traders will be weeded out. This will help the large stockists to pull down the price," he said.
"The jute crisis aggravated due to wrong steps of the Jute Commissioner's office. Soon after they imposed restrictions on balers while increasing holding stock from two to three months for mills pushed up the price immediately," a Jute Balers Association (JBA) office-bearer said.
A similar registration of raw jute dealers was made back in 2016 at the Jute Commissioner's office. JBA members said implementation of proper monitoring is more crucial than the regulation.
The raw jute crisis has led to the closure of more than a dozen jute mills and hampering production of natural packaging bags.