Jute industry fears Rs 200-cr loss on new pricing formula

Sector surviving on ad-hoc jute bag prices for the past 15 yrs

The jute industry is projected to lose Rs 200 crore annually in the wake of new pricing recommendations made by the Tariff Commission in its latest report.
 

Losses incurred on each tonne is estimated to stand at Rs 3,000. Presently, government agencies procure jute bags at a cost of Rs 65,000 per tonne.

Recently, the Tariff Commission submitted its fifth report, while notifying that jute bag prices are 10-15 per cent lower than the price at which the government purchases them.

The Indian Jute Mills Association (IJMA) has contested the Tariff Commission's recommendations on 10 major issues and has demanded