Kolkata, Dec 16 (PTI) The Centre has turned down the request of the jute mills to revise the raw jute fair price to Rs 7200 per quintal in line with the current domestic and international ruling price, for manufacturing bags to pack foodgrains, IJMA Chairman Raghavendra Gupta said on Thursday.
This could lead to a shortfall of supply of environmentally friendly packaging bags as farmers may get discouraged to produce more, a miller said.
Indian Jute Mills Association (IJMA) representatives recently met Union Textile minister Piyush Goyal in presence of two BJP MPs of West Bengal to highlight the current situation and requested the minister to consider relaxing the ceiling price – Rs 6500 a quintal – set by the Jute Commissioner.
“The minister declined to revise the fair raw jute price and upheld the price set by the Jute Commissioner. The price was ruling at Rs 7200 a quintal in line with international raw jute price. In the wake of this, all mills met and decided to adhere to the Rs 6500 per quintal price while procuring raw jute,” Gupta told PTI.
“We are keeping our fingers crossed. Will wait and watch how the raw jute market reacts and if all mill members stick to the ceiling price. It is not possible to predict now whether the price will come down or not,” he said.
For the last two months, mills were maintaining production buying raw jute at Rs 7200 per quintal hoping that the government will revise its fair price, some mills claimed.
The IJMA had promised to supply 2.5 lakh bales per month for the current crop season of 2021-22. Stakeholders, however, claimed that the economy will be counterproductive either way.
“If raw jute price cools down to Rs 6500 per quintal, mills will produce to the demand but farmers’ price realisation will suffer and discourage higher production. And, if prices do not ease, production will suffer and states will face shortage for environmentally friendly packaging bags,” a source said.
The source also acknowledged that the government is also pressed to manage its finances in the pandemic situation. The West Bengal government was also in favour of relaxing the fair price. PTI BSM NN NN
