Kolkata, Jan 21 (PTI) The Jute Commissioner's Office has rationalised the raw jute stock limits for mills to a level, which is equivalent to their two-month average consumptions, to help a section of units secure the raw material, industry sources claimed on Thursday.

The jute mills were previously allowed to hold stocks of raw material equivalent to their average three-month requirements, they said.

The Jute Commissioner's Office, in an order issued on Wednesday, fixed the maximum raw jute stock quantities for 72 mills and the limits are at par with their two-month average consumptions, the sources said.

"We have fixed the maximum quantity of raw jute that can be maintained by all the 72 mills in the country. This will help prevent raw jute hoarding. The West Bengal government has assured us that they will support the drive against hoarding of the commodity," an official source told PTI.

The order will remain valid till July 31 this year, he said.

"We welcome the raw jute stock limit order for mills as it is a positive step to ensure that the raw material is supplied for all units," former Indian Jute Mills Association chairman Sanjay Kajaria said.

Another mill owner, on condition of anonymity, said the order came too late as many units have already incurred huge losses.

The Jute Commissioner's Office had, in November last year, capped the stock holding limit at 500 quintals for stockists, suppliers and balers to ease supplies of the commodity to mills at a reasonable price and prevent its hoarding.

The balers' body, however, had alleged that the control measure made businesses of its members "unviable".

The government's order came at a time when the price of the commodity soared to over Rs 6,000 per quintal, impacting the manufacturing of jute bags.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)