Jute Commissioner withdraws order capping price of raw jute

September 2021 order had capped price of raw jute at ₹6,500 per quintal, resulting in raw material crisis, mill closures and job losses

The Office of the Jute Commissioner on Thursday announced the withdrawal of its earlier notification capping theprice of raw jute. The order will come in effect from May 20. 

“After careful analysis and considering the present market scenario of raw jute availability, I hereby withdraw the notification S.O No. 4054 ( E) dated 30 September, 2021 with effect from 20-05-2022,” the order by Jute Commissioner Moloy Chandan Chakraborty said. 

In the notification issued on September 30, 2021 the Office of the Jute Commissioner had capped the maximum price of raw jute at ₹6,500 per quintal.  This resulted in a crisis of the raw material and about 12 jute mills closed down in West Bengal between November 2011 and April 2022, with about 60,000 jute mill workers losing their employment.  The notification withdrawing the cap on the price of raw jute was welcomed by representatives of the Indian Jute Mill Association (IJMA ) and other stakeholders in the industry.

The Calcutta High Court in its order on May 11 had directed the Jute Commissioner to review and re-fix the rate of raw jute, if the notified rate could not be adhered to. Accordingly, the Jute Commissioner had called a meeting with IJMA’s representatives and the Jute Balers Association on May 18. 

Not only the stakeholders of the industry but political leaders, including Bharatiya Janata Party (BJP) MP from Barrackpore Arjun Singh, raised the issue and met Union Textile Minister Piyush Goyal twice in the past few weeks. There are about 20 jute mills in the Barrackpore subdivision of North 24 Parganas, and 70 mills in the State which employ 3.5 lakh workers. Lakhs of farmers who cultivate the most important cash crop of the State are also associated with the jute industry’s supply chain. Of the finished product, 80% is purchased by the Centre as jute bags for packaging food grains and other agricultural produce.