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India\u2019s Ministry of Textiles has sanctioned a pricing framework that guarantees domestic jute mills an 8.19% return on capital (ROC) for providing jute bags designated for food grain packaging, reported the Press Trust of India<\/em><\/a> (PTI<\/em>), citing a high-ranking official.\u00a0\u00a0<\/p>\n Under this arrangement, national mills are assured a fixed profit margin on their investment, which remains unaffected by the market\u2019s input cost volatility.\u00a0<\/p>\n The Indian Jute Mills Association (IJMA) has indicated that this revised pricing structure will lead to a modest increase in the cost of gunny sacks, estimated at around 4-5%.\u00a0\u00a0<\/p>\n IJMA chair Raghavendra Gupta mentioned that the pricing mechanism is subject to various factors and can fluctuate depending on elements such as raw jute costs.\u00a0\u00a0<\/p>\n Nonetheless, he anticipates that the overhaul in pricing will present a gain of approximately 4-5% for the mills.\u00a0<\/p>\n During a trip to the Indian city of Kolkata, Union textiles minister Giriraj Singh highlighted that the new price structure would also positively impact approximately 400,000 workers in jute mills and around four million farming households involved in its cultivation, particularly in West Bengal.\u00a0<\/p>\n Access the most comprehensive Company Profiles
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