Home breadcru News breadcru Policy breadcru Textile markets should not be regulated, warns L Mansingh

Textile markets should not be regulated, warns L Mansingh

26 Dec '05
2 min read

L Mansingh, Secretary, Department of Consumer Affairs (DoCA), said at the seminar on National Consumer's Day, December 24, that they will follow the Jute Commissioner's order to refuse the trade of commodity at a price higher than minimum support price, with the Union Ministry of Textiles.

Acknowledging the fact that the Textile Ministry and the Jute Commissioner were regulating the jute sector directly and indirectly, he warned that the markets must be allowed to operate in their own way and if the manupalation did not stop, DoCA will have to approach higher authorities.

He said that the markets have to follow thier own course and external interference if any should be eliminated.

Further, Jute Commissioner's order clearly removed the price speculation in the jute sector with no futures trading within the sector.

Raw jute prices have been fixed at Rs 1,470 per 100 kg for the south Bengal (ex-Kolkata) variety, which is lower than that quoted on futures market at about Rs 1,530-60.

Manishingh said that his Department viewed that the market will not be destroyed and futures contracts are between two parties and sacrosanct. They could not go on notional basis that as long as they profited, the contract remains valid and if they made a loss, they could suspend the contract.

Taking a cue form the situation most of the traders and stockists are hoarding the stocks hoping that demand will rise leading to fatening their profits, later.

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