Govt puts price ceiling on raw jute to prevent hoarding

The Centre has fixed a ceiling price for two varieties of raw jute at Rs 6,500 per quintal in West Bengal to prevent hoarding as the commodity is being sold at Rs 7,200 or more in the market. The price ceiling will be effective till June 2022.

“The Jute Commissioner, the regulator of the sector, has put a price ceiling of raw jute (TDN3 and WN3 varieties) at Rs 6,500 per quintal in the state to discourage hoarding as the price has touched Rs 7,200 a quintal,” an official statement said.

The ceiling price of the raw jute has been fixed at Rs 6,800 per quintal in other states. The price control measure will be in place for the current jute season (July-June).

This means the government will consider raw jute price at Rs 6,500 per quintal while calculating the jute bag price. Mills will incur losses if the market price of the raw material is higher than the ceiling one.

In the current year, production of raw jute is huge and several farmers and traders are holding on to the crop. The order may dampen their plan to hoard the commodity.  With rising prices, local traders in all the jute producing districts had started storing raw jute at their houses to sell the commodity at a premium price in future.

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