Last year, the corporation had procured about 8 lakh quintals, (4.44 lakh bales) of raw jute. They were mostly commercially bought and later, were sold at a loss to jute mills.
The raw jute purchases of the corporation are used for food grain and sugar packaging, as mandated by the Jute Packaging Materials Act (JPMA) 1987.
According to sources, unlike last year, when the JCI incurred a loss of about Rs 44 crore, this year, the corporation may fare better as the bulk purchases were made when the prices were low. With the prevailing high prices, the corporation is unlikely to make fresh purchases, said sources.
About 9-10 lakh quintals of raw jute has come under the B Twill linkage for delivery in jute mills, as of now.
Of the 14 lakh quintals procured this year, about 10 lakh quintals were bought at JCI's own centres, and the rest by co-operatives.
This year, the market support price of raw jute is Rs 1,055 per quintal (TD-5 Ex-Assam).
Major purchases by the JCI was done from Malda, Murshidabad and Nadia, the traditional jute-growing areas.
Last year, the corporation had purchased raw jute for Rs 1,350 -Rs 1,400, with about 5 lakh bales commercially purchased due to high prices before the prolonged strike in jute mills.
The jute season of 2007-08 began with a carryover stock of 23 lakh bales with estimated production of 95 lakh bales and an import of 4 lakh bales.
