Raw jute prices fall on dilution plan, lesser supplies

Prices have tanked to Rs 36,650 a tonne currently from Rs 56,520 in July 2016; may plunge further

Prices of raw jute are going downhill with the Union textiles ministry's plan to go for dilution of the mandatory jute packaging order and dwindling crop supplies triggered by the demonetization drive.

Raw jute prices have tanked to Rs 36,650 per tonne and are likely to plunge further. The price fall is from the level of Rs 56,520 per tonne in July 2016. In 2015-16, there was an unabated rise in prices of raw jute. The downtrend in raw jute prices may dissuade farmers from growing more in the 2017-18 season, feels a leading jute mill owner.

"The combined effect of demonetisation