Kolkata, May 9 (PTI) A meeting convened by the Centre on Monday in New Delhi to discuss the contentious issue of price cap on raw jute was "fruitful", and a "positive outcome" is expected shortly, said an official of a millers' body.

West Bengal Labour Department Secretary Barun Kumar Ray, senior officials of the Jute Commissioner's Office and representatives of the Indian Jute Mills were present at the tripartite meeting.

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“There were detailed deliberations on the issue of price capping on raw jute and also on new jute bag pricing. The Union textiles secretary was apprised of all issues. He will now discuss the matter with Minister Piyush Goyal and then will come out with a decision,” IJMA chairman Raghav Gupta told PTI over the phone from the national capital.

The West Bengal government was in favour of removal of the price cap on raw jute and revised pricing of hessian bags as per the recommendation of the tariff commission, industry sources said.

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The meeting was called after BJP MP Arjun Singh criticised the jute policy of the Centre, and accused the commissioner of crippling the industry by retaining the raw jute price cap at Rs 6,500 per quintal.

Singh had threatened to launch protests at various mills in his Barrackpore constituency to highlight how the Centre's policies are “hurting farmers and workers”.

He had also supported West Bengal Chief Minister Mamata Banerjee's demand to remove the price cap on raw jute in the open market, as the current market-driven prices favour farmers.

The jute commissioner, however, had said that the price cap was finalised after looking into all aspects, including the farmers' interest.

This was the first meeting convened by the ministry with all the major stakeholders since the price cap was imposed on September 30 last year, one of the industry sources had said.

Around 2.5 lakh workers are reportedly employed in jute mills in districts of Howrah, Hooghly and North 24 parganas.

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