Fair price of jute bags for govt supply revised to Rs 86,700/tonne

The fair price of B-Twill sacking (jute bags) for government supply has been revised from Rs 86,000 to Rs 86,789 a tonne. This was announced in January by the Jute Commissioner’s office. Revising the price gives clear indication that steps taken by the both state and centre has failed to stem continuous rise in the raw jute price since last few months.

Sources in the jute industry said that JC may have revised the price to encourage IJMA to pull out of the case against the fair price order of January 2016.

JC has also reduced the stock limits of mills from 8 to 4 weeks of consumption and increased trader limits from 500 to 900 quintals.
Indian Jute Manufacturers Association (IJMA) had filed a case against the fair price of B-Twill sacking announced by the Jute Commissioner in January.

The JC letter to Directorate of Supply and Disposals stated that the ex-factory fair price of 580 gms type A and B B-Twill bags for the month of March 2016 without any linkage of raw jute has been worked out to be Rs 86,789 and Rs 86,740.

B-Twill sacking fair price was announced at Rs 80,000 per tonne by Jute Commissioner in January, which has been legally contested by the jute body as it feels supplying at this rate is not possible given the current raw jute price.

IJMA Chairman Manish Poddar when asked if the association is planning to pull out from the case against the January order said that March price is revised to Rs 86,000-plus but pricing for other previous months is still pending. They will see after all issues are cleared.