Centre decides to lift price capping of raw jute with effect from May 20

Kolkata: After constant pressure by BJP MP Arjun Singh, the BJP led central government on Thursday had revised the price of raw jute.

According to a press release issued by the Union Ministry of Textiles, “The Central Government after careful examination of the market dynamics of raw jute trade has lifted price cap of Rs 6500/- per quintal for TD5 grade of raw jute that was fixed on September 30, 2021 on purchase of raw jute by the Jute Mills and other end users.”

The release also said that the 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.

“As the existing prices of Raw Jute are ruling around Rs. 6500/- Govt. of India has taken a dynamic decision to lift the price capping w.e.f. 20th May, 2022. It is expected that the cap removal will help the farmers, Mills and Jute MSME sector wherein over 7 lakhs people are dependent on the jute trade in addition to about 40 lakhs jute farmers. 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,” further read the release.

Welcoming the decision, president of Indian Jute Mill Association Raghavendra Gupta said that with revising of the prices the market force will function ‘normally’.

Expressing joy, Barrackpore BJP MP Arjun Singh said, “At last the Central government had lifted the price of raw jute prices. This will help the workers of the jute mill. Several people are associated with jute mills. I think the most number of workers are associated with jute industry. Those who become jobless can revive their jobs and the closed mills can also open after the prices are revised.”