| Raw jute production during the jute year 2007-08 (July -June) is likely to witness a 5-10 per cent dip over the last year's production of 100 lakh bales. |
| However, the exact production will be known only after the Jute Advisory Board, a body representing the government, growers, industry and traders, reviews the actual stock position. |
| In its last meeting held in October, the board had pegged the jute production at around 9.5 million bales. |
| The Jute Corporation of India (JCI), following its recent crop survey, estimates a further 5 per cent decrease in production to 9 million bales. Of this, West Bengal will produce around 6.55 million bales of raw jute, according to the JCI survey. |
| The market this year is facing an oversupply situation, forcing JCI to introduce minimum support price (MSP) for the commodity. |
| This is mainly due to last year's carry forward stock of nearly 3 million bales, with 1.6 million bales accruing on account of the two-month strike in jute mills. |
| The survey has also pointed to a decline in sowing area and productivity. There is a 10 to 15 per cent decrease on an average in sowing area in West Bengal this year. In Orissa, jute acreage has declined 50 per cent this year from 7,000 hectares last year. |
| In Andhra Pradesh, too, there has been a 10 per cent reduction in the cultivable area. |
| "While the aggregate production of jute showed a declining trend, inter-state variations in production and area coverage have become more prominent, with West Bengal consolidating its position as the major jute producing state, followed by Bihar. Orissa, which had a vibrant jute cultivation in the past, is gradually loosing its jute acreage and is almost on the verge of becoming extinct," a CACP (Commission on Agricultural Costs and Prices) report on the price policy of jute for the year 2006-07 said. |
| The overall cultivable area under certified seeds is close to 34 per cent. According to the Indian Council for Agricultural Research (ICAR), the realisable potential of jute yield in West Bengal is about 38 quintals per hectare. The average jute yield in the state, realised so far, is about two-thirds of the potential. |
| Binod Kispotta, the jute commissioner of the government of India, said, "Jute in West Bengal is facing a lot of competition from not only outside the country but also from within. The government has taken steps like introducing high yielding variety of seeds but many farmers have shifted from jute to oilseed cultivation due to lack of incentives." |
| Sanjeev Chopra, secretary of the agriculture department of West Bengal, said, "Initiatives of the West Bengal government to increase jute productivity include advisory and training services to farmers, and organising demonstrations on plant protection, cultivation and retting techniques." |
| Prices, procurement From May this year, JCI has procured 8 lakh bales of raw jute from West Bengal as the prices fell below the MSP level. The MSP varied between Rs 1,105 and Rs 1,093 across districts in the state. |
| However, the corporation cannot absorb more than 15-20 per cent of the total jute production. |
| Last year, the corporation had initiated commercial operations but a price crash soon after the strike led to revenue losses for the corporation. |
| Even though the prices are favourable for jute mill owners this season, R K Poddar of Ganges Jute Mill said, "JCI is procuring low grade jute. The open market price for good quality jute is still Rs 300 more than the MSP prices. For jute mill owners, despite the lower prices of average quality jute, the cost has not come down due to the bonus demand of workers." |
| Industry sources said during the 2008-09 jute year, MSP could be raised by Rs 100 per quintal. For 2007-08, the state had recommended an MSP of Rs 1,456 per quintal. The West Bengal government has also asked CACP if it could engage an agency for purchasing jute from farmers irrespective of ruling market prices and MSP. |
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