Price cap on raw jute fixed on basis of scientific method not arbitrarily
New Delhi Apr 26 PTI The central government has fixed the price cap of Rs 6500 per quintal on raw jute on the basis of scientific methodology which is in line with the market trend prevailing at that point of time and not arbitrarily official sources said on Tuesday The upper cap of Rs 6500 per quintal was fixed by theJute Commissioners office on September 30 2021 for 2021-22 The West Bengal government suo moto recommended to fix the upper cap of raw jute price at Rs 6000 per quintal in December 2020 which is lower than the upper cap of Rs 6500 per quintal fixed by the Jute Commissioners office one of the sources said Senior BJP leader and MP Arjun Singh has criticised the central government for neglecting West Bengals jute industry and threatened to hit the streets if the issue related to the capping of raw jute prices is not resolved at the earliest He has also supported West Bengal Chief Minister Mamata Banerjees demand to remove the price cap on raw jute in the open market The sources said that so far no farmer or farmer bodies have either orally or in writing lodged a single protest or objection on the price fixation At present almost no jute of the current season is being held by farmers and in fact jute lies with middlementraders and even with mills in their own name or in the name of third parties at various places They said that relaxation in the upper price cap will only accrue illegitimate financial gains by these parties and no benefit will accrue to farmers The fixation of raw jute price at Rs 6500 per quintals was not arbitrary and was incoherence to the market trend prevailing at that point of time a source said The Commission for Agricultural Costs and Prices CACP in its report for 2021-22 has estimated the production cost of raw jute at Rs 2832 per quintal and MSP minimum support price was fixed at Rs 4500 per quintal with more than 50 per cent profit margin for farmers Jute Commissioner had fixed the upper cap at Rs 6500 per quintal leaving no room for grievance by farmers the source said For the overall interest of the jute industry and in the interest of exports in a highly competitive market and to compete with the low-cost plastic and polythene products including bags it is necessary to stabilize the price of raw jute at a reasonable level PTI RR CS MR
New Delhi Apr 26 PTI The central government has fixed the price cap of Rs 6500 per quintal on raw jute on the basis of scientific methodology which is in line with the market trend prevailing at that point of time and not arbitrarily official sources said on Tuesday The upper cap of Rs 6500 per quintal was fixed by theJute Commissioners office on September 30 2021 for 2021-22 The West Bengal government suo moto recommended to fix the upper cap of raw jute price at Rs 6000 per quintal in December 2020 which is lower than the upper cap of Rs 6500 per quintal fixed by the Jute Commissioners office one of the sources said Senior BJP leader and MP Arjun Singh has criticised the central government for neglecting West Bengals jute industry and threatened to hit the streets if the issue related to the capping of raw jute prices is not resolved at the earliest He has also supported West Bengal Chief Minister Mamata Banerjees demand to remove the price cap on raw jute in the open market The sources said that so far no farmer or farmer bodies have either orally or in writing lodged a single protest or objection on the price fixation At present almost no jute of the current season is being held by farmers and in fact jute lies with middlementraders and even with mills in their own name or in the name of third parties at various places They said that relaxation in the upper price cap will only accrue illegitimate financial gains by these parties and no benefit will accrue to farmers The fixation of raw jute price at Rs 6500 per quintals was not arbitrary and was incoherence to the market trend prevailing at that point of time a source said The Commission for Agricultural Costs and Prices CACP in its report for 2021-22 has estimated the production cost of raw jute at Rs 2832 per quintal and MSP minimum support price was fixed at Rs 4500 per quintal with more than 50 per cent profit margin for farmers Jute Commissioner had fixed the upper cap at Rs 6500 per quintal leaving no room for grievance by farmers the source said For the overall interest of the jute industry and in the interest of exports in a highly competitive market and to compete with the low-cost plastic and polythene products including bags it is necessary to stabilize the price of raw jute at a reasonable level PTI RR CS MR
