The government on Thursday said it has decided to lift the price limit of Rs 6,500 per quintal of raw jute from May 20 this year.
The cap removal is expected to help farmers, mills and the jute MSME sector, where more than 7 lakh people are dependent on the jute business, in addition to about 4 million jute farmers, the textile ministry said.
The Jute Commissioner’s Office is collecting information on the price of raw jute through official and unofficial sources and it has been observed that the current price is moving closer to the fixed price.
“Since the existing price of raw jute is around Rs 6,500 (per quintal), the Government of India has taken a dynamic decision to lift the price limit from May 20, 2022,” it said.
The price limit was set on September 30 last year.
“The central government, after carefully examining the market dynamics of the raw jute business, has raised the cap to Rs 6,500 per quintal for TD5 grade of raw jute, effective September 30, 2021, for jute mills and other end users,” it said.
The declining trend will also benefit exports of jute products, which constitute about 30 per cent of the industry’s turnover in terms of prices, it added.