The West Bengal government has called for an urgent meeting this week to review the raw jute situation in the State.
The call comes at a time when farmers are selling their crop at ₹700 per quintal below the stipulated minimum support price. Senior State and Union government officials are scheduled to attend the meeting, sources said. It would be a follow-up of the Group of Ministers meeting held on October 16.
Infrastructure gap
The meeting will also discuss the infrastructure gaps at the Jute Corporation of India (JCI) which is tasked with purchasing raw jute from farmers to prop up the price . “JCI has so far purchased only 28,000 bales this year out of the estimated production of 65 lakh bales for 2017-18,” sources said. Last year, it purchased 56,000 bales out of a total production of 85 lakh bales.
The problem being faced by the farmers is mainly on account of declining demand for the low grade jute being grown by the farmers in West Bengal.
The State is the hub of the low grade — TD 6 — variety of raw jute. The demand for this type of the natural fibre, used mainly for making sacking and gunny bags , has been declining since last year.
This is because of the Textile Ministry’s specifications to the jute mills to make lighter bags in order to tackle competition. However, lightweight jute bags of 560 grams (replacing the earlier 665 grams) necessitates the use of better quality raw jute . This has led to a drop in demand for the TD-6 variety.
Poor agricultural practices and lack of facilities for retting (a process of washing raw jute to get better fibre), has led to the West Bengal farmers resorting to production of this variety. While it was accepted by the mills earlier, now they have reduced the purchase of TD-6.
Erosion in demand
In a letter by Manish Poddar, chairman, Indian Jute Mills Association to the Deputy Jute Commissioner Dipankar Mahato, Mr. Poddar said there had been a 25% erosion in demand for the TD-6 variety during the current kharif season.
He said prices were dropping on weak sentiments due to declining demand and the scenario could be changed if the mills were allowed to tweak the specifications for jute sacks, enabling higher use of TD-6 grade. Or else, the Jute Corporation could be asked to increase its purchases.