Kolkata, Feb 11 (PTI) An association of jute balers has written to the Union Textile Ministry opposing the Indian Jute Mills Association's (IJMA) recommendation to ban stockholding of raw jute, contending that such a move would disrupt the supply chain and hurt farmers' interests.

In a letter to the ministry, the Jute Balers' Association presented a counter view to IJMA's proposal seeking restrictions on the holding of raw fibre stocks by balers and traders.

In its representation to the textile ministry, IJMA had urged the Centre to ban private raw jute trading to tame the unprecedented price of the raw material, which is causing mills to cut production, shutdown and job losses.

The association said balers play a crucial role in procuring raw jute from farmers, grading and storing it, and ensuring steady supplies to mills throughout the year.

Imposing a ban on stockholding would adversely affect this system and create avoidable volatility in the market, it argued.

The balers' body urged the textile ministry not to accept IJMA's recommendation, and instead hold consultations with all stakeholders before taking any decision on the matter.

According to the letter, restricting stocks with balers could lead to distress sales by farmers during peak arrival season and concentrate control of raw material in the hands of mills.

The association maintained that stockholding by balers helps stabilise prices and ensures uninterrupted availability of quality jute to the industry.

It also emphasised that any abrupt regulatory change could have wider implications for the jute value chain, including farmers, traders and downstream units dependent on timely raw material supplies. PTI BSM MNB