The Centre is yet to take a decision on the Textiles Ministry’s proposal for a temporary ban on export of jute seeds given the likely shortage in the jute season, which is beginning this month.

A fortnight ago, the Textiles Secretary had written to the Secretary, Department of Agriculture and Cooperation, requesting steps to increase the availability of jute seeds for the ensuing sowing season and banning of export of jute seeds for three months from now.

The availability of jute seeds in the 2016-17 season is likely to be in the range of 7,000-7,500 tonnes including all varieties, industry sources indicated. The annual requirement of seeds in the country is 6,000 tonnes and 4,000 tonnes are exported to Bangladesh every season.

As the sowing starts in March and April, sources said that the continuing export of seeds might cause a shortfall of around 2,500 tonnes, affecting the sowing activity.

The Textiles Ministry contemplated the pre-emptive export ban in view of the fall in production of raw jute in the 2015-16 season and assuming likely increase of area under cultivation in the forthcoming season.

In the letter (available to BusinessLine ), the Textiles Secretary said the lower production caused a steep rise in raw jute prices during the 2015-16 season and had put the jute industry under pressure.

More seed demand “In the context of the high prices of raw jute in the current season, farmers are likely to grow more jute next year. This is likely to create an additional demand for jute seeds in the month of March and April this year,” the Textile Secretary wrote on March 11.

Raw jute price of the benchmark industry variety (TD 5) has touched ₹5,700 per quintal this month from ₹4,047 per quintal in July last year.

According to industry sources, a significant quantity of seeds has already been exported to Bangladesh. “If the ban comes later, then the impact on the availability of seeds here would be negligible,” said a jute industry insider.

Market reports suggest that jute seeds are available in the price range of ₹150 to ₹230 a kg depending on quality and variety. Jute seed from National Seed Corporation is sold at ₹150 a kg, while Maharashtra State Seed Corporation seed is available at ₹180 a kg.

Ganga-Kaveri seed is ruling at ₹220-230 a kg. These seeds comprise 30 per cent of the total available seed quantity. The balance is of relatively inferior quality and is sold within the range of ₹130-140 a kg.

Jute Corporation of India (JCI) is understood to have procured around 300 tonnes of seeds this year from Shree Sai and Bharat Nursery Co at ₹150 a kg for distribution to farmers.

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