Production of raw jute is likely to drop by 12 per cent to 95 lakh bales in 2012-13.
The country had produced close to 108 lakh bales last fiscal.
A bale of jute weighs 180 kg.
The drop in production is primarily on account of a lower acreage and delayed rainfall. According to a senior official in the jute industry, sowing of the crop has been lower by about ten per cent this year as compared with last year.
Acreage
Area under jute cultivation has remained constant at about 9 lakh hectares over the last few years. Bengal accounts for almost 67 per cent of the total area under cultivation at 6 lakh hectare.
Nearly four lakh hectare of land under jute cultivation lies in the south Bengal districts of Murshidabad and Nadia.
“There has been a slight fall in the acreage . This is mainly because farmers have been sowing other crops despite the high minimum support price for the current crop year,” said Manish Poddar, Chairman, Indian Jute Mills’ Association.
The Union Government announced a MSP for raw jute at Rs 2,200 a quintal for the TD-5 variety of jute ex-Assam for the 2012-13 crop year, almost 31 per cent higher than last year.
Sowing during 2012-13 season has been less by 25 per cent in Bihar and by 10-15 per cent in certain parts of Assam.
However, sowing of raw jute is estimated to be at par with last year in South Bengal, which is the country’s major jute growing area – 70 per cent in terms of area and 80 per cent in terms of production, the senior official said.
Demand-Supply
Though the weather conditions in north Bengal and Assam have been favourable for jute cultivation, the delayed rains in south Bengal has affected the production.
However, there will be no dearth in supply of raw jute despite the estimated drop in production, the official said. “Considering a carryover stock of around 31 lakh bales and an import of about 8 lakh bales from Bangladesh, there will be no dearth in supply this season.”
The total consumption of jute is close to 105 lakh bales, of which mill consumption stands at about 95 lakh bales and the country’s consumption is close to 10 lakh bales.