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Center lifts the price cap on raw jute

Tags: Economy/Finance

The Government of India has lifted the price cap Rs  Rs 6500/- per quintal TD5 grade of raw jute fixed from  30th September, 2021 on purchase of raw jute by the Jute Mills and other end users.

The decision will be implemented from 20 May 2022.

  • This comes after a tripartite meeting was held in New Delhi on 9 May 2022 between the West Bengal Government , Indian Jute Mills Association and the Union Textile Secretary Upendra Prasad Singh .
  • The West Bengal government has been demanding the abolition of the maximum price ceiling for jute and instead demanded that its rate shall be fixed according to the market .
  • According to the  Indian Jute Mills Association  the jute mills were not getting raw jute as the market prices of the raw jute was around Rs 7000 per quintal.
  • Farmers were not willing to sell the jute to Jute mills as the mills cannot pay more than Rs 6500 per quintal price fixed by the government . 
  • The shortage of raw material has led to the  closure of around 12 jute mills in West Bengal. 
  • The price cap removal is expected to help farmers, mills and the jute MSME sector.
    There are around 2.5 lakh jute mill workers and 40 lakh jute farmers in India.

Jute

 It is a natural fiber which is also called as Golden fiber due to its colour and cash value .
The largest producer of Jute in the world is India followed by Bangladesh.
Bangladesh is the largest exporter of Jute in the world followed by India .
The largest producer of Jute in India is West Bengal followed by Bihar and Assam .

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