 "Indian jute, Jute market")
The government on Thursday fixed the minimum price for jute following reports that farmers are facing losses due to bumper crop of the golden fibre.
In a notification, the Jute Commissioner said the minimum price has been fixed at Rs 5,050 per quintal at the farm level and Rs 5,500 per quintal for deliveries in Kolkata.
The move was appreciated as average raw jute prices of the most traded variety TD5 had slumped to as low as Rs 4,100 on Wednesday, market sources said.
Jute Commissioner Moloy Chandra Chakraborty said that the minimum price of jute in all forms will be in force till October 31 or until further orders for any trade in raw jute.
"No buyer or seller shall be entitled to transact at rates other than those specified in this order," he said.
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Jute farmers recently demonstrated in Nadia, Murshidabad, Uttar Dinajpur, North 24-Parganas, and Hooghly districts demanding better prices and a rise in the MSP for their produce. They had blocked roads and set jute bales on fire.
Some 5-6 lakh people are engaged in jute farming in West Bengal.
On the necessity of implementing such a floor price when farmers could sell their produce to the Jute Corporation of India's (JCI) collection centres, Chakraborty said that covering the entire farming population through such centres is not always feasible.
Therefore, this order is designed to provide crucial support to both farmers and jute goods manufacturers, the jute commissioner said.
JCI Managing Director Ajay Kumar Jolly told PTI that he welcomes the step of the jute commissioner as this will improve the situation of the jute market and provide relief to farmers.
Sanjay Kajaria, former chairman of the Indian Jute Manufacturers' Association and the owner of multiple jute mills, welcomed this intervention.
He described this as a historic development, saying it is the first time in several decades that a floor price has been set to protect farmers' interests.
Kajaria said the procurement of jute bags by the government should be higher as it is now lower by 20-30 per cent over last year.
JCI officials expected to procure at least 50 per cent more raw fibre in the current jute year (2023-24) than the previous year, in the wake of a bumper season of the crop which is estimated at 91 lakh bales.
JCI operates 110 procurement centres of its own to support farmers selling their produce.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
