Kolkata, Jun 8 (PTI) The prospect of a bumper and early jute crop comes as a welcome development, as West Bengal’s jute industry was battling a prolonged raw material crunch that has disrupted mill operations and pushed up costs.| Initial market feedback from major jute-growing regions suggests the 2026-27 crop could be significantly higher than last year, with trade estimates placing production in the range of 95-100 lakh bales. In 2025-26, the official raw jute production was 75 lakh bales, but mill sources said the actual amount was far lower.
The prospect of improved supplies comes at a time when several mills were battling raw material shortages, which forced production cuts and temporary shutdowns.
Official jute bodies have not yet announced production estimates.
Industry leaders, however, cautioned that the benefits of a larger harvest would depend largely on policy decisions the government makes in the coming weeks.
“As someone engaged in the jute trade, I would describe the situation as finely balanced. On one hand, mills were facing operational strain due to limited raw jute in the pipeline; on the other, an early and good-sized new crop is expected,” former Indian Jute Mills Association (IJMA) chairman Sanjay Kajaria told PTI.
How policy and market participants respond over the next few weeks will be crucial in determining whether this season stabilises smoothly or remains volatile for all stakeholders, he said.
Some farmers claimed the harvesting of jute plants is beginning, and the plants will soon be taken for manual processing like cutting, submerging in water (retting) to soften tissues, and then extracting the golden fibre.
IJMA Chairman Raghavendra Gupta said the widely discussed production figure was based on preliminary market intelligence and that the association’s official assessment would follow shortly.
“Trading has remained closed since May 5. Only forward contracts are taking place beginning August 2026. The estimate of 95-100 lakh bales is market feedback. We will take another week or two to come out with the IJMA’s own production estimate,” Gupta told PTI.
According to trade sources, farmers in Assam, North and South Bengal and parts of Bihar expanded sowing this year, encouraged by strong prices that trebled from the MSP earlier in the season. Favourable weather during sowing resulted in healthy plant stands across several producing belts.
In some pockets, the crop is progressing ahead of schedule, raising expectations of fresh arrivals from late June, ahead of the official start of the new jute season on July 1.
The improving crop outlook stands in sharp contrast to the current condition of the industry. Jute mills have been struggling to secure raw material amid supply constraints and stock restrictions, leading to a sharp escalation in raw jute prices and operational difficulties.
Market participants said expectations of a larger crop are already being reflected in forward contracts for August deliveries. Deals are reportedly being struck at around Rs 13,000 per quintal for August 10 deliveries, Rs 12,000 for August 20 positions and nearly Rs 11,300 for end-August deliveries, compared with the current unofficial spot price of about Rs 19,000 per quintal.
Industry sources said the steep discount in forward prices reflects expectations that an early and sizeable crop could substantially improve availability once fresh arrivals gather pace.
The expected increase in production comes at a crucial time for the new state administration, with the jute sector — one of eastern India’s largest employers and a key contributor to West Bengal’s industrial economy — reeling from supply disruptions and concerns over existing stock-limit regulations.
Industry bodies said the absence of clarity ahead of the new season is adding to uncertainty. While a bumper crop is building up in the fields, mills remain constrained in procurement, and traders are awaiting a clear policy roadmap from the Jute Commissioner regarding stock management and market operations. PTI BSM NN
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