SME Times News Bureau | 18 Feb, 2019
The Jute Commissioner has extended the deadline of
furnishing undertakings on payment of statutory dues to workers and prompt
payment for raw jute supplies to February 20.
The Ministry of Textiles had issued an order stipulating
that 100 per cent foodgrain and 20 per cent of sugar is required to be
compulsorily packed in jute packaging material.
And, to ensure that persons engaged in production of raw jute and jute
packaging material derive benefit from the mandatory packaging, the jute
millers were asked to submit the undertaking to the Office of the Jute
Commissioner by January 25.
"One month has already elapsed since the intimation to the all jute mills
was made. The unusual delay by the mills in submitting an undertaking as per an
order conveying the decisions of CCEA has been taken very seriously," an
"We are in discussions with the Ministry of Textiles.
Millers did not submit the undertaking on the statutory dues. All our issues
have been brought to the notice of the ministry," Indian Jute Mills Association
(IJMA) Chairman Manish Poddar told IANS.
Without divulging the details of the parleys, Poddar said the industry is
hoping that "a solution would be brought forward".
He said the industry has "never supported" any provision of statutory
dues with regard to payments to workers.
However, a government official said the undertaking was sought for implementing
the CCEA's decision.
"The process of submitting an undertaking by jute mills is in line with
the exercise for implementing the CCEA decision for ensuring payment of
statutory dues to jute workers and prompt payment on procurement of raw
jute," the official said, adding that they have been asked to submit this
by February 20.
According to sources, mills procure raw jute from traders, suppliers and
financiers, who buy it by paying cash to farmers or middlemen. The traders then
supply it to different jute mills on different payment arrangements with the
interest varying from 18 per cent to 36 per cent per annum.