Raw jute prices drop by 50% in West Bengal

Kolkata: Raw jute prices in West Bengal have crashed by nearly 50 per cent since early July, raising concerns over the price-fixing mechanism for government jute packaging material even as the industry has questioned the methodology behind daily market quotations.

According to price bulletins issued by the Jute Balers’ Association (JBA), the benchmark rate for TD-5 grade raw jute (South Bengal) fell from Rs 18,300 per quintal on July 9 to Rs 9,100 by August 1, a decline of over Rs 9,000 in about three weeks.

“This is an extraordinary crash that raises serious questions before farmers, jute mills and the government’s packaging system. The industry needs a transaction-based investigation into how prices have moved this way, especially even before adequate arrivals of the new crop,” said Sanjay Kajaria,and former IJMA chairman.