The government on Thursday fixed the minimum price for jute following reports that farmers are facing losses due to a bumper crop of the golden fibre.

The Jute Commissioner said the minimum price has been fixed at Rs 5,050 per quintal at the farm level and Rs 5,500 per quintal for deliveries in Calcutta. The move was appreciated as average raw jute prices of the most traded variety TD5 had slumped to as low as Rs 4,100 on Wednesday, market sources said.

Jute Commissioner Moloy Chandra Chakraborty said that the minimum price of jute in all forms will be in force till October 31 or until further orders for any trade in raw jute.

“No buyer or seller shall be entitled to transact at rates other than those specified in this order,” he said.

Jute farmers recently demonstrated in Nadia, Murshidabad, Uttar Dinajpur, North 24-Parganas, and Hooghly districts demanding better prices. Some 5-6 lakh people are engaged in jute farming in Bengal.

On the necessity of implementing such a floor price when farmers could sell their produce to the Jute Corporation’s collection centres, he said covering the entire farming population through such centres is not feasible.