Raw jute prices in West Bengal have crashed by nearly 50 per cent since early July, according to price bulletins issued by the Jute Balers' Association (JBA). The benchmark rate for TD-5 grade raw jute (South Bengal) fell from ₹18,300 per quintal on July 9 to ₹9,100 by August 1 — a decline of over ₹9,000 in about three weeks. The extraordinary slide has raised concerns over the price-fixing mechanism for government jute packaging material, with industry players questioning the methodology behind the daily market quotations from the JBA.
Price collapse since July
The JBA's price bulletins track the benchmark South Bengal TD-5 grade. The numbers show:
| Date | TD-5 raw jute price (per quintal) |
|---|---|
| July 9 | ₹18,300 |
| August 1 | ₹9,100 |
| Decline | over ₹9,000 (nearly 50%) |
The crash came before adequate arrivals of the new crop had hit the market, a point flagged by Sanjay Kajaria, industry veteran and former chairman of the Indian Jute Mills Association (IJMA).
Industry questions market quotations
On July 14, the Indian Jute Mills Association wrote to JBA chairman Madan Gopal Maheshwari alleging the published quotations were "not reflective of the actual price in market trades." According to the IJMA letter, mills were compelled to pay higher prices for ready delivery contracts than the published rates, and deliveries often fell short even then.
"This is an extraordinary crash that raises serious questions before farmers, jute mills and the government's packaging system. The industry needs a transaction-based investigation into how prices have moved this way, especially even before adequate arrivals of the new crop hit the market."
Kajaria made the remarks as part of the industry response to the price slide, according to the report.
Quotations underpin government price-fixing
IJMA said the JBA's daily quotations serve as the primary reference used by the jute commissioner's office to determine the raw jute cost component — accounting for nearly two-thirds of the total manufacturing cost — while fixing the monthly fair price of government jute gunny bags. The association argued that any distortion in quotations undermines the credibility of the price-fixation mechanism for government jute packaging material.
Balers' association defends methodology
Responding on July 16, Maheshwari said JBA's five-member quotations committee records rates quoted by participating mills each working day and evaluates them on a "like-for-like basis" using a standard ready-delivery period of seven to 10 days. Quotations involving non-standard delivery or payment terms are excluded from the benchmark.
"The published quotation is intended to provide a fair, objective and consistent indication of the prevailing market for comparable ready-delivery transactions."
Maheshwari added that the methodology has been "consistently followed" over the years.
Impact across the supply chain
The price crash raises serious questions before farmers, jute mills and the government's packaging system, according to Kajaria. The dispute centres on whether the official daily quotations reflect actual market trades, given that the JBA benchmark for TD-5 South Bengal grade is the reference used in fixing the monthly fair price of government gunny bags. The nearly 50 per cent drop in about three weeks has put the quotation methodology under scrutiny. The story was published on August 2, 2026, by PTI.
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