Notwithstanding higher production, jute prices rule firm
The fifty five for every cent jump in output notwithstanding, raw jute rates are ruling firm owing to reduced availability as farmers are keeping on to their stock in anticipation of better rates. The reduced carryover stock from very last 12 months is also pushing up rates.
Prices of raw jute in West Bengal is hovering around ₹7,000-seven,two hundred a quintal, as against the usual common of around ₹4,500-four,750 a quintal all through the commencing of the crop time.
Raw jute output in the Point out is approximated to be shut to eighty five-90 lakh bales in 2021-22, as against fifty five-58 lakh bales in 2020-21. The higher output is on the again of favourable climate problems and raise in sowing space owing to the hugely remunerative rates the golden fibre fetched very last 12 months.
In accordance to Raghav Gupta, Chairman, Indian Jute Mills’ Association (IJMA), raw jute rates have been hugely volatile very last 12 months owing to the reduced crop. Prices had touched as significant as ₹9,000 a quintal in the direction of the end of the very last crop time (that is in June this 12 months). Even so, when the new crop started arriving, rates started to drop and touched around ₹5,500 a quintal.
“Farmers have been reluctant to sell at these rates and so have been keeping on to the make. This pushed up rates,” Gupta informed BusinessLine.
Increased jute acreage
Jute cultivation in the place is largely concentrated in 3 states which include West Bengal, Bihar and Assam. Bengal accounts for practically 80 for every cent of jute acreage and eighty three for every cent of output, followed by Assam with a output share of around 8 for every cent and then Bihar.
The sowing acreage in West Bengal, which had dropped to 6.5 lakh hectare in 2020-21, is approximated to have elevated to around seven.5 lakh hectare all through this time.
It is to be noted that lousy climate problems and the migration of jute farmers to other crops these as maize dragged down raw jute output to fifty five lakh bales in 2020-21, as against an common output of around sixty five-70 lakh bales.
Whilst the cyclone Amphan in Might 2020 and the subsequent rains destroyed the crop in Bengal. Significant rain in 21 districts of Assam in July-August very last 12 months had also impacted output of raw jute in the northeastern region.
In contrast to this, jute output this 12 months has been higher owing to favourable climate problems and elevated cultivation, field insiders explained.
Prices have been predicted to stabilise around ₹5,500 a quintal on the again of a higher output this 12 months. Even so, that did not transpire as farmers have been keeping onto their stock.
It is to be noted that the Commission for Agricultural Prices & Prices (CACP) in its “Price Coverage for Jute: 2021-22 season” has proposed a MSP of raw jute (TDN3, equivalent of TD5) for the time 2021-22 to be fastened at ₹4,500 a quintal. This is an raise of 6.5 for every cent more than MSP of ₹4,225 a quintal for the very last time.
Price tag ceiling
The jute regulator Jute Commissioner’s office has imposed a price tag ceiling of ₹6,500 a quintal on raw jute trade in get to assure supply of raw product to the mills at a fair price tag.
The Indian Jute Mills Association (IJMA), which feels that the price tag ceiling is very likely to be counterproductive for jute cultivation, has sought the intervention of West Bengal Chief Minister Mamata Banerjee to just take up the make any difference with the Centre to review its final decision.
“The jute farmer will be dis-incentivised to cultivate raw jute following 12 months with these restrictions in spot. The West Bengal jute farmers will be worse off than their counterparts in Bangladesh. Indirectly this will consequence in progress of the Bangladesh field at the charge of India,” IJMA explained in the letter to the Chief Minister.