Jute prices fall below MSP in Bengal

Jute prices in West Bengal, particularly of the lower grades, have slipped below the minimum support price, amid muted demand and "lack of adequate procurement support" from the Jute Corporation of India (JCI), industry sources said.
Price of the TD5 variety was ruling at Rs 3,425 per quintal, while TD6 was at Rs 2,525 as against the MSP of Rs 3,500 and Rs 3,100, respectively.
"Jute price of TD5 and TD6 was hovering below MSP, due to inadequate purchase support from JCI. The Centre's policy to procure jute bags for mandatory packaging of 580 gm has also led to an abrupt decline in demand for TD6 variety of raw jute by mills," one of the sources told PTI.

This has fuelled a rise in prices of higher grades of raw jute, as demand shifted to better varieties.
When contacted, JCI chairman K V R Murthy declined to comment on the issue.
Though the standard estimate of the Commission for Agricultural Costs and Prices (CACP) for TD6 production is 15 per cent of the total raw jute output, market projections are to the extent of 30-35 per cent since the 2016-17 crop season.

The West Bengal government has decided to procure 1.2 lakh bales of sacking bags to ease out the situation.
However, it did not help the free fall of prices of raw jute, the sources said.

As per the current trend, procurement by JCI is 1.3 per cent of the estimated production of 85 lakh bales, they said.
JCI is mandated to procure jute from farmers without any limit if they bring it to procurement centres.
The jute body operates around 30 direct purchase centres out of 171 in West Bengal.