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Farmers rejoice as shortage brings spurt in jute prices
22 Apr '09
2 min read
The jute fibre has always been considered a poor cousin of its cotton and man-made fibre counterparts in the textile industry. Government apathy has also contributed in no less deal to the fall of this vital sector from the great heights it attained in previous years.
But the latest malady to affect this sector is the growth in prices in the last nine months. Jute of the TD-5 variety which was ruling at Rs 1,478 per quintal in July 2008, have now surged to a high of Rs 2,370 per quintal in April 2009, up nearly 60 percent.
Experts attribute this to a low jute crop in the new season which began from June 2008, since many farmers shifted to other crops due to the low remunerative prices they were receiving from the cultivation of jute in the previous years.
But at the same time, they also accuse jute mills and traders of hoarding and creating an artificial shortage, which has led to this unprecedented rise in raw jute prices. The only segment happy with this development are the farmers, who are recipients of this bounty.
The total raw jute supply this year is projected to be around 10.6 million bales (one bale=180 kg) of which the jute crop from the current season amounts to 8.2 million bales, carryover stock from the last season is 2.2 million bales and imports will add up to 200,000 bales.
But the latest malady to affect this sector is the growth in prices in the last nine months. Jute of the TD-5 variety which was ruling at Rs 1,478 per quintal in July 2008, have now surged to a high of Rs 2,370 per quintal in April 2009, up nearly 60 percent.
Experts attribute this to a low jute crop in the new season which began from June 2008, since many farmers shifted to other crops due to the low remunerative prices they were receiving from the cultivation of jute in the previous years.
But at the same time, they also accuse jute mills and traders of hoarding and creating an artificial shortage, which has led to this unprecedented rise in raw jute prices. The only segment happy with this development are the farmers, who are recipients of this bounty.
The total raw jute supply this year is projected to be around 10.6 million bales (one bale=180 kg) of which the jute crop from the current season amounts to 8.2 million bales, carryover stock from the last season is 2.2 million bales and imports will add up to 200,000 bales.
Fibre2fashion News Desk - India
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