India’s raw jute production is likely to be lower by 25-30 per cent in 2024-25 compared to the last season as there has been some transition by farmers to alternative crops as a result of lower raw jute prices.
The country’s raw jute production in 2023-24 was 90 lakh bales. The average raw jute production over the last four years has been around 96.93 lakh bales of 180 kg each.
Speaking at a meeting of the Expert Committee on Jute (ECJ), Indian Jute Mills Association (IJMA) Chairman Raghavendra Gupta said the crop size is expected to be lower by at least 25-30 per cent in 2024-25 compared to the last season. He said consequent upon continued lower procurement by the government and default by sugar mills in purchasing jute bags, raw jute prices ruled below MSP for a considerable period of time and as a result there has been some transition by farmers to alternative crops.
Rain impact
Gupta also informed that lower rainfall in the month of June this year also contributed to lesser production of raw jute. Crop production in Assam has been affected to some extent by floods.
In the ECJ meeting at the Office of the Jute Commissioner in Kolkata on November 26, Jute Commissioner Moloy Chandan Chakrabortty said the procurement of jute bags on government account has increased over the years. In 2023-24 (April-March), the government procured a record 36.29 lakh bales of jute bags worth about Rs 12,400 crore.
“The recent Expert Committee on Jute (ECJ) meeting has once again brought the jute industry’s enduring challenges to the forefront. The finalised figures for the 2024-25 season have revealed a disconcerting trend: a massive carryover stock of 32 lakh bales, surpassing last year’s already high 25 lakh bales. What is more troubling is the projection of similar levels of carryover into the 2025-26 season, a direct consequence of the demand-supply mismatch that has plagued the industry for years,” said Sanjay Kajaria, former Chairman of the Indian Jute Mills Association.
“The numbers tell a grim story. Despite a reduction in mill consumption at 65 lakh bales, the supply side remains robust, with an estimated production of 74 lakh bales for jute and mesta. Variations in estimates provided by different stakeholders further highlight the challenges in aligning production figures with market realities,” Kajaria said, adding demand side remained stagnant. Domestic consumption for industrial purposes is capped at 15 lakh bales, showing no significant growth, he said.
