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

The Central Government on Thursday announced that it has decided to lift the price capping of raw jute from May 20, 2022. This cap removal will help farmers, mills as well as Jute MSME sector. Zee Business Ambarish Pandey's report.

Exports of jute goods account for about 30% of the turnover of the industry in terms of value. So, the decreasing trend in prices will also benefit jute goods exports.

"Centre decides to lift the price capping of raw jute w.e.f. 20th May 2022; will help Farmers, Mills, & Jute MSME sector. The decreasing trend in prices will also benefit jute goods exports which constitute about 30% of industry’s turnover in value terms," PIB tweeted.

Centre decides to lift the price capping of raw jute w.e.f. 20th May, 2022; will help Farmers, Mills, & Jute MSME sector

The decreasing trend in prices will also benefit jute goods exports which constitute about 30% of industry’s turnover in value termshttps://t.co/qlxKa159JK

— PIB India (@PIB_India) May 19, 2022

The Central Government, after careful examination of the market dynamics of raw jute trade, has lifted the price cap of Rs 6500 per quintal for TD5 grade of raw jute fixed from April 30, 2021, on the purchase of raw jute by the Jute Mills and other end-users, Pandey 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.  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 from May 20, 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.