Increased Arrivals Likely To Activate Decline In Jute Prices

Increased arrivals likely to activate decline in jute prices

Kolkata: The raw jute trade is anxious of fall 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. Arrivals in the Kolkata market during July and August were barely 7-8 per cent of what is pegged to be this year's jute crop. The rest of the jute crop that has been harvested is lying in upcountry markets. It is hoped that arrivals from all jute-growing areas such as South Bengal, North Bengal, Assam and parts of Bihar will improved 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. Raw jute prices were likely to ease during the peak arrival period.

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. 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 estimated it at 89 lakh bales even as Jute Corporation of India has pegged it to be 90 lakh bales. Indian Jute Mills Association has pegged its estimates at 100 lakh bales.