Jute industry to incur Rs 3 billion loss on major cut in bag prices

With this, govt agencies will buy sacking bags meant for food grains and sugar at 5-7% lower than industry average

The decision of the Tariff Commission to cut prices of jute bags by almost Rs 3,000 per tonne has dealt a blow to the jute industry. The beleaguered sector is estimated to lose Rs three billion each year due to downward revision of prices. After the correction, jute sacking bags meant for packing food grains and sugar would now be purchased by government agencies at a price five to seven per cent lower than the industry average.

As per the Tariff Commission, the current price of A and B type jute bags are Rs 72,345 per tonne and Rs 69,585