Jute production in the current fiscal year (July 1995-June 1996) is estimated to be 23% lower than in 1994/95 as a result of the adverse weather conditions during the growing season. According to early figures from the Jute Directorate, 445,000 ha of land have been planted to jute this year, down by 21% on 1994/95, while production is estimated at 660,000 tons, a 35% fall. But 90,000 tons of the crop was later estimated to have been destroyed by the drought and floods, leaving total production at only 570,000 tons. The reduction in crop yield was most marked in traditional high yield areas, while the result in low yield areas was better than usual.
--but stocks should be adequate
However, with carryover stocks of 250,000 tons, domestic raw jute stocks should be adequate this season, leaving 265,000 tons available for export. Moreover, the reduced crop this year has pushed up the price of jute, encouraging farmers to grow more of the crop next year, although it will also boost the market for synthetic substitutes to jute.