Stock limits were imposed on mills to control the price of raw flax

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New delhi date. 22 January 2021, Friday

According to the order issued by the Jute Commissioner of the Center, hemp mills will now be able to keep stocks of raw flax up to a certain limit. This order has come to control the price of raw flax.

The Center has to provide 100 per cent subsidy for the purchase of linen bags for storage of foodgrains. The rise in raw flax prices has pushed up the price of jute bags, so the government is understood to have taken this step to control subsidy payments.

There are currently 6 flax mills operating in the country. The jute commissioner has instructed these mills to file stock returns every week now instead of monthly. The instructions were issued to curb heavy buying and to avoid imbalance between supply and demand, government sources said. Sources added that it was time to issue the said order as the price of raw flax was above Rs 2,000 per quintal.


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