The Hindu Business Line : Increased arrivals may trigger fall in jute prices

Kolkata, Sept. 3 The raw jute trade is apprehensive of a dip in the price of the fibre between mid-September and mid-October, when the maximum quantity of the new raw jute crop arrives in the market. Informed sources say arrivals in the Kolkata market during July and August were barely 7-8 per cent of what is estimated to be this year’s jute crop.

Harvested crop

The sources said the rest of the jute crop that has been harvested is lying in upcountry markets. It is expected that arrivals from all jute-growing areas such as South Bengal, North Bengal, Assam and parts of Bihar will pick up from the first week of September.

The benchmark TD 4 grade of raw jute was quoted at Rs 1,270 per quintal in Kolkata on August 14. It went up to Rs 1,330 per quintal on August 20 before losing ground gradually and being quoted at Rs 1,295 per quintal on August 30 and 31.

Mr Phanibhusan Banerjee, Secretary of Jute Balers’ Association, confirmed the development and said raw jute prices were likely to ease during the peak arrival period.

Demand

The demand for raw jute, however, will be good given the Government orders for procurement of B Twill bags for delivery in September and October. In addition to orders for 1.1 lakh bales of B Twill bags for August delivery, the Government agencies have issued orders for 1.5 lakh bales of B Twill bags for September delivery and another one lakh bales for October delivery.

Output

Meanwhile, the Jute Advisory Board has pegged the quantity of raw jute crop during the 2007-08 jute year at 95 lakh bales. The Jute Balers’ Association has pegged it at 89 lakh bales even as Jute Corporation of India has estimated it to be 90 lakh bales. The Indian Jute Mills Association has pegged its estimates at 100 lakh bales.