CALCUTTA, Aug 17: Government agencies are likely to stop procuring jute goods through the Directorate General of Supplies & Disposals (DGS&D). Jute industry sources said the institutions would opt for tenders instead.

They said DGS&D, in line with its plans, had begun moving out of the business. Though it placed orders for jute goods on behalf of Food Corporation of India in July, the payments are scheduled to be made by FCI itself. Earlier DGS&D used to take care of both placement of orders and the payments to be made.The directorate functions under the department of supplies of the Union ministry of commerce. Apart from FCI, it procures jute goods for state government undertakings in Punjab, Haryana and Uttar Pradesh. It also procures cement, petroleum and lubricant products, steel items and vehicles for various central and state government agencies.

Sources said DGS&D may move out of this business in November paving the way for open tendering. However, DGS&D officials, on condition of anonymity, said they would continue to operate in the jute sector as desired by the government agencies.

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