The Center has set a ceiling price for two varieties of raw jute at Rs 6,500 per quintal in West Bengal to avoid hoarding as the commodity is sold for Rs 7,200 or more in the market, an official said on Saturday.
This ceiling price will be in effect until June 2022, he said.
“The Jute Commissioner, the regulator of the sector, has capped the price of raw jute (varieties TDN3 and WN3) at Rs 6,500 per quintal in the state to discourage hoarding because the price has reached Rs 7,200 per quintal,” said declared an official. .
The ceiling price for raw jute has been set at Rs 6,800 per quintal in other states.
The price control measure will be in place for the current jute season (July-June), he said.
“This means the government will consider the price of raw jute at Rs 6,500 per cwt when calculating the price of the jute sack,” an industry source said.
Factories will suffer losses if the market price of the raw material is above the ceiling price, he said.
“During the current year, production is enormous and several farmers and traders are maintaining the harvest so far. The order could put the brakes on their plans to hoard the merchandise, ”the source said.
With the rising prices, local traders in all jute producing districts had started storing raw jute in their homes to sell the merchandise at a higher price in the future.