Union Textiles Minister Giriraj Singh has announced significant policy changes to address rising raw jute costs, including increased stock limits for mills while reducing limits for traders and balers. These measures aim to protect jute farmers' interests and ensure fair pricing in an industry where approximately 80% of workers and farmers reside in West Bengal.

Government Price Support Measures

The government has implemented a systematic approach to support the jute industry through regular price adjustments. The purchase prices of B. Twill jute bags have seen substantial increases to help the industry cope with rising raw material costs.

Enhanced Enforcement and Industry Support

The Office of the Jute Commissioner will intensify efforts to identify and penalise those hoarding beyond allowed limits, as violations have already been detected. In a meeting with Neelam Shami Rao, Secretary of the Ministry of Textiles, Singh emphasised ensuring sufficient raw jute availability for mills and MSMEs to facilitate smooth industry operations.

The government plans to issue an official notification soon regarding these stock limit changes. Additionally, Singh instructed an increase in subsidised certified jute seeds under the Jute ICARE Scheme by the National Jute Board, aimed at boosting productivity, quality, and farmers' income while ensuring greater raw jute availability for mills.

Strong Financial Performance of Jute Corporation

The Jute Corporation of India Limited (JCI) serves as the central government agency responsible for procuring raw jute from farmers when market prices fall below Minimum Support Price (MSP). The corporation has demonstrated robust financial performance over recent years.

The FY 2024-25 dividend payment of ₹17.04 crore represents an unprecedented amount distributed to the Government of India as JCI's sole shareholder. The Government of India remains committed to supporting JCI's infrastructure and operations for effective MSP implementation.

Comprehensive Industry Stabilisation Strategy

These measures reflect a comprehensive government approach to stabilise the jute industry while ensuring fair practices and support for all stakeholders. By adjusting stock limits and enhancing seed subsidies, the government aims to balance market dynamics and secure livelihoods within this vital sector that plays a crucial role in India's agricultural economy.

Ludlow Jute & Specialities Limited has announced the receipt of credit ratings from CRISIL Ratings Limited for its bank facilities worth ₹148.71 crores. The company informed BSE about the rating assignment under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CRISIL Ratings assigned the company a long-term rating of CRISIL A-/Stable and a short-term rating of CRISIL A2+. The ratings cover various bank facilities across multiple financial institutions, reflecting the agency's assessment of the company's creditworthiness and ability to meet its financial obligations.

Facility-wise Rating Breakdown

The rated bank facilities are distributed across Canara Bank and YES Bank Limited, covering different types of banking arrangements:

The largest component is the cash credit facility from Canara Bank at ₹64.00 crores, followed by the working capital demand loan from YES Bank Limited at ₹31.00 crores.

Rating Validity and Surveillance

CRISIL has indicated that all assigned ratings will be kept under continuous surveillance and review. The rating agency reserves the right to withdraw or revise the ratings based on new information or changing circumstances that may impact the company's credit profile.

Regulatory Compliance

The company has fulfilled its regulatory obligations by promptly informing the stock exchange about the credit rating assignment. This ensures compliance with SEBI's listing regulations that require timely disclosure of material information to investors and market participants.