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Jute prices likely to head south

Our Bureau  |  Kolkata 

Jute prices are likely to witness a steep fall in the coming months owing to poor offtake of yarn and hessian in the world market, according to K K Dhandhania, president, The Jute Brokers Association.
Moreover, most mills have reduced their working shifts in September and October as supply of jute was being held up in small towns by stockists, thus causing an artificial shortage.
Dhandhania said with a carryforward of 11 lakh bales and a likely import of another seven lakh bales, the total availability would be 118 lakh bales.
The Industrial consumption of 99 lakh bales along with cottage industries and upcountry consumption of seven lakh bales would add up to a total consumption of 97 lakh bales.
"As such the jute year ending in June 2006 was likely to end up with a healthy carryforward of around 21 lakh bales. In view of the above, the present ruling price of about Rs 1,400 a quintal seems speculative," he said.
He further added that, though quantity-wise, the crop had exceeded expectations, quality-wise it was going to be inferior.
One of the main reasons behind the inferior quality was the paucity of adequate rains in south Bengal belts of Murshidabad, Nadia and Burdwan, the farmer had not gone for harvesting at regular periods of time. As a result, 35 per cent of the crop was still waiting to be harvested in the south Bengal districts.
"The crop had been outstanding in Assam, semi-northern belts and has been at par with the pervious year in north Bengal an Bihar. The south Bengal crop has improved in quality though it has lost its quality" he said.

First Published: Thu, October 06 2005. 00:00 IST