FY17 raw jute production pegged at 10.2 mn bales

Raw jute production in India is expected to touch 10.2 million bales (one bale is 180 kg) this year with 25-30 per cent increase in sowing area of the fibre crop. If actual production meets the estimates, the crop size for this financial year would see a 50 per cent jump over 6.8 million bales in 2015-16.

The total availability of raw jute for 2016-17 is estimated at 11 million bales considering imports of 0.3 million bales and carry over stock of 0.5 million bales.

Of the estimated availability, jute mills are expected to consume eight million bales while domestic consumption would be of the order of one million bale, leaving a carry forward stock of two million bales.
 

"The arrival of a bumper crop is expected to ease the worries of the industry and ensure availability of raw jute at optimal prices. In the last crop year, cultivation of raw jute fell 30 per cent and an unprecedented situation of high price of raw jute prevailed due to the hoarding of raw jute by the speculators," said a leading jute mill owner.

The jute sector is in doldrums due to an extended two-year crisis. Amid the possibility of hoarding and price manipulation, the sector has suggested to the Union textiles ministry that the Jute Commissioner needs to monitor the price of raw jute and a price band of Rs 40,000-50,000 a tonne should be maintained. Also, the Jute Commissioner should maintain a detailed report of grades of ore imported into India.

Moreover, the Jute Advisory Board (JAB) needs to hold meetings to assess and evaluate the raw jute situation keeping in view the volatility prevailing in the raw jute market and give a realistic crop forecast. The jute sector has suggested that the JAB meetings should take place during pre-sowing, post-sowing, pre-harvest and post-harvest periods.

At present, raw jute produced in the country is of lower quality from which only sacking varieties can be made. The jute sector feels the Union agriculture ministry and the Commission for Agricultural Costs & Prices should work on quality enhancement before commenting on the future of the sector.