TRENDS IN THM JUTO INDUSTRY 104
sa One solution (suggested by IjMA) is that the government sheuld^nake compensatory payments to Jute growers (foe the loss m earnings arising
53 Saugata Mukherji, "Imperialism in Action through a Mercantilist Function", in Asok Sea-i, A Chattopadhyaya, et al (ed) Essays vn Hwowt of Pro f SCSurkor P P H Ltd New Delhi, 1976, p 739. See %bo Samgasta Mufekhearji, Trade in Rice and Jute in Bengal: Its Effects on Prices; Cultivation and Consumption of fke Two Crops in Early 20th Century 1900/1-1920/21 (Unpublished JRH D Dissertation, Jadavpur University^ Dept of Economics, t971)y Ch I, Sec 3, where details of the dadan system in financing agriculture and its impact on the ^mtpirt and distribution of jute as also the agricultural income dependent on it, are dftah: with. It should be noted that in the 33 days strike in January 1974, the CITU was demanding & mmittHfm price of Rs 100 per maund for the fibre and the abolition of the dadcHt system of fibre-marketing.
84 See Anil Chatterjee; "Production and Marketing of Raw Jute" Mainstream December 20, 1975. See also The Commission of Inquiry on the Jute Industry, 1970, set up by the second U F Govt in West Bengal, which in its Interim Report, July 1970, discussing the problem of the weak base of raw jute production pointed out that "all investigations into the industry, before and after Partition, have reached unanimity in identifying this malaise, and all recommendations for the rehabilitation of the industry have laid emphasis on first constructing a sound base to the industry by removing the in-built weaknesses in the system of production and marketing of jute.
s6 D Nayyar, "India's Export Performance in the 1970s" Economic and Political Weekly, May 15, 1976.
86 It is interesting in this context to note the following:
1) The bulk of the jute purchases are not made through established dealers and brokers, but through fictitious agencies.
2) Sales of jute cuttings are suppressed.
3) Stores required for the mills, are purchased by setting up benami companies and these are subsequently transferred to mills at high prices.
87 Kalyan Chaudhuri, "The Jute Story", Frontier June 19, 1976. See however, "Condition in the Jute Industry", People's Democracy, February, 22, 1976 which argues that except for the closed mills in West Bengal, the others are running at full capacity.
SB "Paradox of Jute", Statesman, New Delhi, February 21, 1977. 89 "Jute Industry's New Policy of Modernisation", The Economic Times, August 25,1976.
40 Authors's interview with Mr Kamal Sarkar, General Secretary Bengal Chatkal Mazdoor Union (CITU) October 1976.
41 The main argument being given by spokesmen of the industry, in an attempt to wrest greater concessions from the GOI in 1976, was that mills had totally exhausted their raw jute stocks and were now forced to buy the fibre from the market where stocks had been cornered by a section of the trade. But the question arises:
how is it that some of the traders can still manage to hoard stocks of raw jute and sell them at black market prices when there was supposed to be a nationwide drive against such offenses during this period? See Economic and Political Weekly July 3, 1976, "Jute Industry: Pressure Tactics."
42 Sec, "i\o Cinderella this" Economic and Political Weekly, December 6, 1975. 48 One recent, sophisticated manner in which a fair price is denied to the grower is the following: Under the system of gradation of raw jute in terms of WI to W 8 in place of the earlier one of Assam Bottoms and the like, the trade agents buy a better type of fibre by. paying the price of an inferior grade. As the