ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Stock Market- High Hopes

February 16, 1985 fected the working of the weaker mills. A few of them have resorted to lockouts, using minor pretexts, while some others are contemplating closure. This is probably partly because the prevailing high prices of the fibre are beyond their reach. The mills that are working well seem to be those in which the owners have links in the fibre trade. These mills must be earning good returns since the prices of jute goods too have gone up considerably this year; so much so that there are now fears that the price spurt might prove detrimental to the industry since consumers might look for cheaper synthetic alternatives. The IJMA, apparently in an attempt to forestall such an eventuality, has been pressing the Union government to regulate both the consumption of fibre and the production of goods by the mills. The expectation seems to be that such measures would help contain the prices of both the raw materials and the finished products. It remains to be seen whether or not the government will accept the IJMA proposal, and more importantly, what actual impact it will have if implemented. One conclusion can, however, be drawn. Pursuit of shortsighted profit objectives by the traders and millowners, as in the present year, compounded by the absence of a firm official policy, will only aggravate the persisting sickness in this traditional industry.

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