Source: Business Standard

 

West Bengal and Bihar are the leading producers. Its output averaged 10.1 million tonnes annually in the past decade and hit a record 11.2 mn tonnes in 2009-10, falling thereafter. The second Advance Estimates for FY13 had set production at 10.5 mn tonnes, 1.6 per cent lower than the previous year. Following the dip in inflation due to a record crop, prices have moved up and jute has stayed with high double-digit inflation since lastJuly. The crop has received significant backing from the government, with the minimum support price (MSP) raised every year. Yet the output has not kept pace with demand, given the mandatory packaging regulations. There is a shortage of supply of jute bags this year to store foodgrain stocks. The MSP has now been increased to Rs.2300 a quintal for 2013-14, a 4.3 per cent increase over the previous year, and price pressures are expected to be sustained for jute this year.

 

IPM data till week ending March 30. The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding WPI. However, broad trends are in sync.