Reasonable Price for Raw Jute for 2021 to 2022

## Report on Jute Price Control Notification **1. Executive Summary:** This report analyzes a notification issued by the Jute Commissioner, Ministry of Textiles, Government of India, regarding the reasonable price of raw jute. This notification, effective from September 30, 2021, sets a ceiling price for raw jute until June 30, 2022, or further orders. The core purpose is to regulate the raw jute market and prevent sales above the specified reasonable price. Key findings include the establishment of specific prices for different grades of jute in West Bengal and other states, as well as stipulations regarding sales and purchases. **2. Introduction:** This report aims to provide information and analysis of the notification S.O. 4054(E), issued by the Jute Commissioner, Ministry of Textiles, concerning the reasonable price of raw jute. This analysis is based solely on the content of the provided text. **3. Policy Overview:** * This notification is issued in exercise of powers conferred under Clause 3 and 5 of the Jute and Jute Textiles Control Order, 2016. * **Core Objective:** To fix the reasonable price of raw jute in all forms to be in force until June 30, 2022, or further orders, and to prevent the sale or purchase of raw jute at prices exceeding this reasonable price. **4. Background and Rationale:** As this is a notification fixing the price of jute under the existing Jute and Jute Textiles Control Order, 2016 it implies a need to regulate price fluctuations in the raw jute market. The setting of a "reasonable price" suggests an aim to protect both jute farmers from excessively low prices and jute mills from excessively high prices. The notification likely aims to stabilize the market and ensure a fair price for raw jute transactions. **5. Key Provisions / Changes:** This is a new notification setting jute prices. The key provisions are: * **Price Fixation:** Sets the reasonable price for raw jute at INR 6500 per quintal for TDN3 and WN3 grades in West Bengal and INR 6800 per quintal for the same grades in other states. * **Grade Equivalence:** Defines TDN3 and WN3 as equivalent to TD5 and W5 grades. * **Grade Differentials:** States that grade differentials for other grades will be the same as the market price as on 30.09.2021. * **Prohibition of Excess Pricing:** Prohibits dealers, traders, agencies, suppliers, or any other person from selling or offering to sell raw jute at a price exceeding the reasonable price specified in the notification. Also prohibits any person or agency or company from purchasing raw jute at a price exceeding the reasonable price mentioned in the notification. * **Exclusion of Interest/Penalty:** Clarifies that any interest or penalty payable by purchasers on delayed payments or for other reasons is a matter solely between the purchaser and supplier and is outside the scope of the fixed reasonable prices. **6. Target Audience and Stakeholders:** Based on the text, the directly affected stakeholders are: * Jute Farmers * Jute Traders * Jute Mills * Jute Agencies * Jute Suppliers * Any individual or company involved in the sale or purchase of raw jute. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Jute Commissioner, Ministry of Textiles, is the responsible authority for issuing and enforcing this notification. * **Timeline:** The reasonable price is in force until June 30, 2022, or until further orders are issued, whichever is earlier. * **Monitoring:** While not explicitly stated, it can be inferred that the Jute Commissioner's office will monitor the market to ensure compliance with the price restrictions. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this notification are: * **Price Stabilization:** To stabilize the raw jute market by setting a ceiling price. * **Fair Pricing:** To ensure fair prices for both jute farmers and jute mills. * **Market Regulation:** To prevent speculative price increases and ensure a consistent supply of raw jute. * **Protection of Industry:** Protecting the jute industry from market distortions and supply chain issues. **9. Conclusion:** The notification issued by the Jute Commissioner, Ministry of Textiles, represents a significant intervention in the raw jute market, setting a reasonable price and prohibiting sales above that price. This measure aims to stabilize prices, ensure fair transactions, and protect the interests of both producers and consumers within the jute industry. The notification is valid until June 30, 2022, or until further orders are issued.

Key Entities Referenced