Jute bag prices are expected to rise 4-5 per cent after the Cabinet Committee on Economic Affairs approved a new methodology of pricing, providing better rates to jute mills as the prevalent prices were not in line with the rising costs and changing market dynamics.

The new pricing methodology, based on the report of the Tariff Commission, is expected to take into consideration factors such as cost of raw jute, labour, manufacturing and other expenses to determine the price of jute bags, industry sources said.

“Better pricing of jute bags will support modernisation and diversification,” the textile ministry has said in a social media post on X.

According to mill sources, a bag of 580 gram costs around ₹52-53 now.

The government purchases jute bags worth ₹12,000 crore every year for compulsory packaging of 100 per cent food grains and 20 per cent sugar. The government has reaffirmed its commitment of purchasing jute bags for compulsory packaging, IJMA said adding that the new pricing and compulsory packaging will bring relief to 4 lakh workers and 40 lakh farmers engaged in the jute sector.

“We believe that these measures will not only strengthen the industry but ensure its long-term sustainability, benefitting million of workers and farmers across the country,” said Raghavendra Gupta, chairman, IJMA.