Jute Cultivation Likely To Be Lower This Year

Kolkata: If the demand for seeds is any indication, the acreage under jute cultivation this year is lower than last year. Consequently, the yield of the crop for the jute year July 2007-June 2008 is hoped to be lower as well. On account of an estimated carry forward stock of 27-28 lakh bales, the industry is not hoped to face any shortage of its raw material. According to sources in the Jute Balers' Association, the ensuing jute year (July-June) will start with a carry forward stock of around 27-28 lakh bales, including raw jute lying in mills' godowns, with Jute Corporation of India (JCI) and upcountry markets. It may be mentioned that the 63-day, industry-wide jute mills strike in West Bengal that ended earlier in March this year resulted in lower consumption by jute mills during the current jute year to the extent of 16 lakh bales.
Rraw jute consumption by the mill sector during a normal working year stands at about eight lakh bales per month aggregating to 96 lakh bales for the full year. The sources said sowing has already commenced in jute-growing areas. In Assam and North Bengal, sowing is almost over even as it continuous in semi-northern and South Bengal and Bihar. The Union Government has already declared the minimum support price (MSP) at Rs 1,055 per quintal for TD 5 Grade jute ex-Assam.