In the domestic market, raw jute prices crashed 40% to reach around Rs18,000 a tonne in August 2009 from the all-time high of Rs30,200 a tonne in July 2009, on concerns of a possible 25% dilution in Jute Packaging Materials Act (JPMA) of 1987. Sugar industry made it worse for the raw jute price, as they refrained from procuring jute bags despite the arrival of the new jute crop from 1 July 2009.

Natural rubber price is likely to rise further from its current level of Rs102 per kg for RSS-4 grade, on declining domestic production and robust demand from China. During April-July, production has dropped to 209,825 tonnes from 242,115 tonnes in the same period last year. 

The government has decided to reduce the minimum export price for basmati rice to $800 per tonne from $1,100 per tonne. This is likely to help exports of this premium variety of rice at a lower price. This would increase the availability of other common varieties of rice in the domestic market allaying concerns of supply shortage due to poor paddy cultivation.