Calcutta, Aug. 18: Raw jute prices have shot up by around Rs 100 per quintal as a result of the drought situation in north Bengal and Assam.

The Jute Balers’ Association (JBA), which monitors fibre availability and prices, fears a crop loss of nearly 1 million quintals mainly because of shortage of retting water in the post-harvest period.

Bengal agriculture secretary Atanu Purkasthya told The Telegraph that the minor irrigation department and panchayats had been asked to ensure that farmers get water for processing raw jute. The entire minor irrigation network would be used for the purpose, he added.

TD-4, a benchmark grade jute fibre, was today quoted at Rs 1,300 per quintal against Rs 1,200 at the end of last week. “This was mainly because of depressed sentiment among operators and fear of a lower fibre availability,” association secretary P.B. Banerjee said.

Jute traders had estimated a bumper crop of 10 to 11 million bales (180 kg/bale) against 85 bales last year following soaring prices of around Rs 2,000 per quintal quoted on the commodity bourses, coupled with favourable rains during the sowing season earlier this year.

The prediction of a better crop in the current year had boosted the sentiment of the jute players as well as the government. Indian Jute Mills Association deputy chairman R.K. Poddar had predicted a lower sacking price for government supplies in the current year after the cabinet committee on economic affairs last month gave its nod to continue with the policy of packing 100 per cent food grains and sugar in jute sacks.