The Union textiles ministry has permitted Jute Corporation of India (JCI) for commercial buying and selling of jute and related articles, said ministry source.
An agreement to implement this initiative, was signed in New Delhi on Wednesday. The ministry has approved to commercialize, but declined to relate such purchase with share of B Twill sacking bags orders from various government agencies to mills.
However, the ministry agreed that JCI will be provided ten percent administrative cost to sustain MSP operation, he added.
Under the current plan, buying of raw jute by JCI under the MSP operation is related with allocation of B Twill jute bags to mills. This means, mills receive government order for supply of jute bags, were forced to buy large quantity of raw jute from JCI.
JCI initiated new plans to start commercial operation as market price of raw jute rose above the minimum support price, informed industry sources.
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