Indian sugar mills association

Centre's help sought after jute prices fall

Date:	13 Feb 2018

Source:	The Hindu

Reporter:	Special Correspondent

News ID:	29834

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The jute industry has sought the intervention of the Textiles Minister to stem the decline in raw jute prices.

In a letter to Smriti Irani, Manish Podddar, chairman of the apex industry body, the Indian Jute Mills Association (IJMA) said a crisis was prevailing in raw jute with prices ruling at several notches below the minimum support price.

In the letter, dated February 8, IJMA said for the TD 5 variety, the price was lower by about ₹7,000 per tonne, and by ₹10,290 per tonne for the TD 6 variety. “This is almost 20% and 35% below the MSP for TD5 and TD6 respectively,” it said, adding the total loss to jute farmers had been estimated at about ₹1,000 crore.

Raw jute is produced mostly in West Bengal (74%) followed by Bihar and Assam. The industry sought Ms. Irani’s intervention to raise purchases by the Jute Corporation of India as an immediate measure.

The Centre is gearing up to announce the MSP for FY19. Government documents indicate the price would be about 5% higher than this year’s MSP. Data also showed that between FY13 and FY18, area under jute cultivation shrank to 6,84,3000 hectares from 7,56,000 hectares. Raw jute output fell to 98.3 lakh bales from 110 lakh bales.

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