The government on Thursday said it has decided to lift the price cap of Rs 6,500 per quintal on raw jute from May 20 this year.
It is expected that the cap removal will help the farmers, mills and jute MSME sector, wherein over 7 lakh people are dependent on the jute trade in addition to about 40 lakh jute farmers, the textiles ministry said.
Jute Commissioner Office has been collecting the information about the raw jute prices through formal and informal sources and it has found that the present prices are ruling near the capped price, it said.
“As the existing prices of raw jute are ruling around Rs 6,500 (per quintal), Government of India has taken a dynamic decision to lift the price capping w.e.f. 20th May, 2022,” it said.
The price cap was fixed on September 30 last year.
“The central government, after careful examination of the market dynamics of raw jute trade, has lifted price cap of Rs 6,500 per quintal for TD5 grade of raw jute, fixed w.e.f. (with effective from) 30th September, 2021 on purchase of raw jute by the jute mills and other end users,” it said.
The decreasing trend in prices will also benefit jute goods’ exports, which constitute about 30 per cent of the industry’s turnover in value terms, it added.