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AP witnesses raw jute price hike of 18%
Jan '10
Raw jute in the state of Andhra Pradesh witnessed price hike of Rs. 4,000 per ton in last five months. Most of the mills in the state bring jute from West Bengal to fulfill their requirements.

Raw jute suppliers in West Bengal are currently supplying raw jute at Rs. 26,000- 27,000 per ton, which earlier stood at Rs. 22,000 per ton, at the beginning of raw jute arrival i.e. in the month of July. These prices are expected to increase further and reach Rs. 28,000.

Local mills of Andhra Pradesh were purchasing raw jute from Bangladesh too, till last year, but this year the government of Bangladesh has imposed ban on jute export, which is one of the reasons behind the increase in jute prices.

West Bengal fulfills most of the requirement of Andhra Pradesh jute mills i.e. 75-80 percent of its annual requirement of 350,000 tons of raw jute, while AP produces just 20-25 percent of it.

This increase in raw jute prices amplified the prices of finished products by Rs. 3,000 per ton during aforesaid period. Twine prices are now ruling at Rs 39,000-40,000 per ton from Rs 36,000-37,000 per ton and the prices of gunny bags have increased to Rs 65,000 per ton from Rs 61,000-Rs 62,000 per ton.

Moreover, jute industry is facing severe labour dearth. Workers in twine mills, who were paid Rs. 110-120 per day during last season, are now demanding Rs. 150 per day, owing to which most of the twine mills are operating two shifts a day instead of three, said an expert.

There are around nine composite mills producing gunny bags and 19 twine mills in the state.

Fibre2fashion News Desk - India

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