Centre decides to lift price capping on raw jute

Tags: National News

The government has decided to remove the price cap of Rs 6,500 per quintal on raw jute from May 20 this year.

• The removal of the cap will help farmers, mills and the jute MSME sector, in which more than 7 lakh people depend on the jute trade, apart from around 40 lakh jute farmers.

• The price cap was fixed on September 30 2021.

• The declining trend in prices will also benefit the exports of jute goods, which account for about 30 percent of the turnover of the industry in value terms.

• Some important facts 

• Jute is an important natural fibre crop after cotton in India.

• Raw jute plays an important role in the economy of the country.

• Jute cultivation is mainly concentrated in eastern and north eastern India.

• India is the world's largest producer of jute, followed by Bangladesh.

• It is primarily grown in West Bengal, Odisha, Assam, Meghalaya, Tripura and Andhra Pradesh.

• West Bengal leads jute cultivation.

• The jute industry of India is 150 years old.

• There are about 60 jute mills in West Bengal.

• Jute can be used for geotextiles, activated carbon powder, wall coverings, floors, textiles, rugs, ropes, sacks, handicrafts, curtains, carpet backings, papers, sandals, carry bags and furniture.

• In October 2020, the government decided that 100% food grains and 20% sugar would be compulsorily packed in jute bags.