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ANNUAL REPORT 2003-04
129
CHAPTER-XI
JUTE
The Jute Sector has been playing
an important role in the economy
of the country in general and east-
ern region in particular. About 4 million
families are dependent on cultivation of
jute and mesta. The jute industry provides
direct employment to about 2.61 lakh
workers and supports around 1.4 lakh
people engaged in tertiary sector and al-
lied activities. These apart, the jute indus-
try contributes to the National exchequer
from exports & through taxes and levies.
Three successive bumper crops of raw jute
including mesta during the year 2001-02
at 105 lakh bales, 2002-03 at 110 lakh
bales and estimated 90 lakh bales during
2003-04 have a dampening impact on the
raw jute market. In the backdrop of sur-
plus supply of raw jute, the lower demand
from jute mills has made raw jute prices
lower touching the Minimum Support Price
(MSP) level. However, the active price
support operations of Jute Corporation of
India (JCI) along with its agent Coopera-
tive Societies has arrested the decline
prices. In the manufacturing sector, per-
formance of jute sector during the year has
not been encouraging. However, export
market of jute goods bags has displayed
a notable turn around. A number of inno-
vative steps have been taken by the Govt.
of India for giving a boost to exports.
PRODUCTION OF JUTE
GOODS
During the year 2003-04 (April-February),
total production of jute goods stood at
1423.8 thousand M.T as against 1464.5
thousand M.T in the corresponding period
of 2002-03. (Table 11.1)
Table No. 11.1 QTY. n’000 MT
(April-March) Hessian Sacking CBC Others Total Corresponding
consumption of
raw jute in lakh
bales
1995-96 413.9 676.3 30.5 312.3 1433.0 82.90
1996-97 368.7 666.6 25.2 340.4 1400.9 80.23
1997-98 392.4 864.6 19.8 401.6 1678.4 95.98
1998-99 344.1 903.3 18.5 330.3 1596.2 90.68
1999-00 344.5 909.2 8.0 328.5 1590.2 90.87
2000-01 337.9 952.9 6.6 327.5 1624.9 92.80
2001-02 275.3 1034.3 5.0 286.2 1600.8 91.42
2002-03 338.3 1000.0 5.4 278.1 1621.8 92.62
2003-04(April-February) 274.9 807.1 4.6 257.2 1423.8 81.36
2002-03(April-February) 312.0 893.4 4.8 254.3 1464.5 83.62
% change - 2.0% -2.2% - 0.6% 1.8% - 1.1% - 2.26
MINISTRY OF TEXTILES
130
DOMESTIC OFF-TAKE OF
JUTE GOODS AND RELATED
DEVELOPMENTS
Total domestic consumption of jute goods
during 2003-04 (April-February) was lower
at 1214.3 thousand tonne as against
1229.2 thousand tonne in the correspond-
ing period of last year 2002-03. As may
be seen from the Table 11.2, domestic de-
mand for sacking has decreased to 824.2
thousand tonne during the period April-
February, 2003-04 as against 849.5 thou-
sand tonne during the same period of last
year; while domestic demand for Hessian
increased to 226.5 thousand tonne dur-
ing the period April-February, 2003-04 as
against 225.8 thousand tonne during the
same period of last year (Table 11.2)
Retting of Jute Crop
ANNUAL REPORT 2003-04
131
TABLE –11.2
Domestic Consumption of Jute Goods
QTY IN ‘000 M.T.
(April-March) Hessian Sacking CBC Others Total
1995-96 266.9 665.5 2.3 226.6 1161.3
1996-97 259.8 652.0 1.7 222.5 1336.0
1997-98 285.8 842.4 1.5 257.5 1387.2
1998-99 286.2 886.3 1.3 230.5 1404.3
1999-00 287.0 907.4 1.4 230.9 1426.7
2000-01 269.7 935.2 0.8 229.4 1435.1
2001-02 243.0 1021.4 0.9 195.5 1460.8
2002-03 251.3 954.8 1.9 167.7 1375.7
2003-04 (April-February) 226.5 824.2 0.3 163.3 1214.3
2002-03 (April-February) 225.8 849.5 1.7 152.2 1229.2
% change 0.3 -3.0 -82.4 7.3 -1.2
EXPORT PERFORMANCE AND
RELATED DEVELOPMENT
Export of jute goods during 2002-03 (April-
March) at 229.2 thousand M.T valued at
Rs.916.67 crore registered notable rise at
57% in terms of quantity and 62 % in Ru-
pee value over that of the year 2001-02.
Export of jute goods during 2003-04(April
2003-February 2004) was at 197.6 thou-
sand tones valued at Rs.719.31 crore,
while in the corresponding period during
2002-2003, it had been 201.7 thousand
tones valued at Rs.805.72 crore register-
ing fall of 2% in terms of quantity and 11%
in terms of Indian Rupee. (Table 11.3).
Table 11.3
Actual Export of Jute Goods from India
QTY.’000 M.T Value: Rs. in Crores
Period Hessian Sacking CBC Yarn JDPs Others Total
(April-March) Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value
1995-96 124.5 357.67 7.2 18.04 23.2 63.74 59.0 134.59 … 45.97 4.2 14.82 218.1 634.83
1996-97 76.0 292.81 6.7 20.26 15.4 50.19 51.3 134.31 … 55.82 5.6 18.99 155.0 572.38
1997-98 103.5 294.24 17.9 40.59 13.5 40.70 95.4 231.96 … 56.38 9.7 30.83 240.0 694.70
1998-99 65.3 199.39 8.0 20.45 15.3 46.87 69.5 185.40 … 78.78 12.9 51.41 171.0 582.30
1999-2000 57.4 196.05 5.6 14.38 6.3 19.29 83.9 223.01 … 68.81 15.8 49.99 169.0 571.53
2000-01 86.0 317.7 8.1 24.28 3.1 10.45 127.4 340.65 N.A N.A 30.5 238.73 255.1 931.71
** **
2001-02 36.8 131.34 12.2 40.96 4.4 15.10 79.0 224.84 … 106.44 13.7 48.84 146.1 567.52
2002-03 77.4 272.06 37.5 128.38 3.8 13.55 88.0 252.69 … 185.74 22.5 64.23 229.2 916.67
2003-04 54.2 1620.41 45.7 135.34 … … 74.1 210.26 … 132.13 23. 6 79.15 197.6 719.31
(April 2003-
Feb. 2004)
MINISTRY OF TEXTILES
132
The revised DEBP rates for the items in
Table-I are effective from 9th July, 2002 and
those for the items in Table-II from 1st April,
2002. The guidelines for claiming revised
DEPB benefits were laid down by DGFT
in another Public Notice No. 63/2002-07
of the same date. The revision followed
factoring of special additional duty (SAD)
in the computation of DEPB rates in addi-
tion to basic custom duty payable on the
deemed import content of export prod-
ucts. Consequent upon general reduction
n customs duty from 1st March, 2003, the
DGFT slightly modified DEPB rates for jute
Table 11.4
Import of Jute & Jute Products
Qty: M.Ton Value : Rs. in Lakhs
Period Raw Jute Jute Products
Quantity Value Quantity Value
April 2003-February 2004 102750 10138.35 8295 2139.08
April 2002- February 2003 124213 11700.48 6892 1792.18
% variation - 17.27 - 13.35 +20.35 +19.35
A) Duty Entitlement Pass Book (DEPB) benefits to Jute products: The Director General
of Foreign Trade, by a Public Notice No. 62(RE-2002)/2002-2007 dated 17.02.2003 re-
vised the DEPB rates to the jute products. The rates are as follows:
Table -11.4 (i)
Product Group : Miscellaneous Product Code : 90
Sr. Description DEPB Value cap for
No. Rate(%) DEPB entitlement
24. Jute Soil Saver 5.00
25. Jute Yarn / Jute Twine 5.00
26. a. Hessian 8.00 Rs. 40/Kg
b. Hessian made-up 8.00 Rs.55/Kg
27. a. Sacking cloth 11.00 Rs.30/Kg
b. Sacking made-up 11.00 Rs.40/Kg
Table-11.4 (ii)
Product Group: Plastics Product Code: 63
Sr. Description DEPB Value cap for
No. Rate(%) DEPB entitlement
34 Hessian Bags with LDPE/HDPE/PP
liner/lamination and with/without
Zipper/ Handle 9.00 Rs.175/Kg.
37 Jute Bags with HDPE liner/LDPE
liner/lamination with/without Zipper/
Handle 9.00 Rs.175/Kg.
ANNUAL REPORT 2003-04
133
(ii) An additional 5% EMA is provided
on Food Grade Jute Products and
Food Grade Jute Cloth exported to
enlisted countries of Latin/Central
America and Africa.
(iii) The External Market Assistance is
also available on Jute Geo-textiles,
Hessian and Sacking Made-ups in
addition to the DEPB benefit
available on these items.
INCENTIVE SCHEME FOR
MODERNISATION OF JUTE
INDUSTRY
Technology Upgradation Fund Scheme:
In view of the significance of Textiles in-
dustry including the jute industry to the
overall health of the Indian economy, its
employment potential and the huge his-
torical backlog of technology upgradation,
particularly in the context of the liberaliza-
tion of the national industrial and trade
products, along with some other items,
with effect from 1st April 2003. While hes-
sian cloth and hessian made-up will attract
a rate of 7%, sacking cloth and sacking
made-up will attract a rate of 10%. The rate
for items in Table II stands reduced to 8
per cent. The value cap remains unaltered.
B) External Marketing Assistance
Scheme: This scheme was introduced
w.e.f. 8.2.1989. The scheme aims at en-
couraging the export of jute products in-
cluding diversified jute products by giving
an incentive to attract the consumers. The
Govt. of India have extended the existing
EMA Scheme for a further period of one
year w.e.f. 1st April 2003.
(i) The following products are eligible for
EMA, at rates indicated against them with
effect from 1st April 2003:
Table 11.5
Sl. Category Rate of EMA w.e.f. 01.04.2003
No FOB Value realized.
1. Jute or Jute blended/union fabrics 5%
(FOB above Rs. 5000/MT)(Subject to
maximum ceiling of Rs. 5000/MT)
2. Jute Blended/Union carpets/Mat/matting 5%
3 Jute handicrafts 5%
4. Jute wall-Hangings 5%
5. Jute or jute blended garments
and made ups 5%
6. Food grade Jute Products 5%
7. Jute Geo-Textiles 10%
8. Jute Yarn,Jute Twine and Value 7%
Added Hessian Cloth (FOB above
Rs. 50,000/MT) exported by 100% EOUs
MINISTRY OF TEXTILES
134
Technology Upgradation Fund Scheme (TUFS-Jute Industry Report till February
2004) and Cumulative Position of Applications Received under it (i.e. w.e.f. 1.4.99
viz. date of launch of the TUFS)
Table 11.6
(Rs. in Crores)
Application Assistance
Sanctioned Pending Rejected/closed Disbursed
No.of Project Amt. No.of Project Amt. No.of Project Amt. No.of Amt.
Application cost Under Applica- Cost Under Appli- Cost Under Applica- Under
TUFS Tion TUFS Cation TUFS tion TUFS
1 2 3 4 5 6 7 8 9 10 11
14 168.32 76.30 4 10.15 10.35 2 20.51 8.92 10 33.77
Source: IFCI Limited, Head Office, New Delhi
policy and globalization of textile trade, it
has been emphasized that in order to sus-
tain and improve its competitiveness and
overall long term viability, it is essential for
the textile industry to have access to timely
and adequate capital at internationally
comparable rates of interest in order to
upgrade its technology level.
In the light of the foregoing, it has been
felt necessary to make operational a fo-
cused and time-bound Technology
Upgradation Fund Scheme (TUFS), which
would provide a focal point for moderni-
zation efforts through technology
upgradation in the industry. The main fea-
ture of the TUF Scheme would be a five
percent reimbursement of the interest ac-
tually charged by the identified financial
institutions on the sanctioned projects.
� Government of India, Ministry of
Textiles has launched Technology
Upgradation Fund Scheme for the
Textile & Jute Industries for a period
of 5 years with effect from 01-04-
1999 and this has been extended to
March, 2007.
� Under the scheme interest
reimbursement of 5% on the interest
actually charged by identified
financial institutions on sanctioned
projects is permissible and
Technology Upgradation ordinarily
means induction of state of-the-art
or near state-of-the-art technology.
� The Industrial Finance Corporation
of India (IFCI) is the Nodal Agency
for Jute sector.
JMDC Incentive Scheme for Moderni-
sation of Jute Industry
(i) Goods Subsidy Scheme of JMDC:
Government of India, Ministry of Textiles
vide its communication No. 6/1/ 2002-Jute
export dated 5.7.02 launched the scheme
with JMDC as implementing agency. The
scheme came into effect from 8.7.2002
and would continue initially for a period of
three years. The capital subsidy under the
scheme shall be restricted to 15% of the
cost machinery/ equipment by eligible jute
mills who are cess-paying units. Follow-
ing is the Up-to-date status of JMDC In-
centive Scheme for Modernization of Jute
Industry:
ANNUAL REPORT 2003-04
135
Table 11.7
No. of cases Approved Investment Amount of
for Modernization Incentives
1. Payment released 1 Rs. 37.91 lakh Rs. 5.69 lakh
2. In-Principal Approval 6 Rs. 499.5l lakh Rs.67.43 lakh
3. In the pipeline awaiting finalization
(i) Own Sources 12 Rs. 933.55 lakh Rs.140.03 lakh
(ii) Bank Finance 1 Rs. 12.41 lakh Rs. 1.86 lakh
TOTAL Rs.1433.38 lakh Rs. 215.01 lakh
Scheme (JEAS). The Scheme is imple-
mented by NCJD. The Scheme shall re-
main valid for the period of the 10th Plan.
Under the Scheme, capital subsidy will be
given at the rate of 15%, and 10% of the
cost of plant and machinery for projects
under category A&B respectively of jute
diversified units having cost of plant and
machinery upto Rs. 5 crore. The Scheme
is intended for setting up new units/ ex-
pansion of existing units for production of
diversified jute products. The subsidy un-
der the scheme shall not be allowed to any
JDP manufacturing unit if they receive sub-
sidy from any other scheme of the Gov-
ernment of India.
Government of India, Ministry of Textiles
in a communication No. 6/ 1/ 2002-Jute
Export dated 19/25th September, 2003
conveyed its approval towards extending
the scheme to pay assistance @ 20% un-
der the scheme for establishment of new
modern jute mills in new locations, pertain-
ing to jute growing areas having inad-
equate jute processing facilities, on pay-
ment of cess for at least three months.
(ii) Jute Entrepreneurs Assistance
(Capital Subsidy) Scheme (JEACSS)
by NCJD: The scheme may be called, the
National Centre For Jute Diversification’s
(NCJD), Jute Entrepreneurs Assistance
Response received so far for the Jute Entrepreneurs’ Assistance (Capital Sub-
sidy) Scheme: Entrepreneurs from following States have shown interest to avail the
benefits of the scheme:
Table 11.8 (i)
Name of State No. of Application Name of State No. of Application
1. West Bengal 8 6. Assam 6
2. Delhi 2 7. Haryana 2
3. Gujrat 2 8. Tamil Nadu 3
4. Maharastra 5 9. Utter Pradesh 2
5. Andhra Pradesh 5 Total Appl.s received 35
MINISTRY OF TEXTILES
136
Table 11.8 (ii)
Status of Project Proposal as on 31.03.2004:
Sl. Name of Firms Location Scheme Approved/
No. Disbursed in
1 M/s. Essem Jute Twine Ltd. W. Bengal Jute Spinning Rs. 31,57,800/-
2. M/s. Mahla Hasta Kauhal Samity U. P. Bags Sent for revision
3. M/s. Muniappan T. Nadu Power Loom -do-
4. M/s. Super Fibre Ltd. Haryana Spinnng Rs. 33,43,000/-
5. M/s. B.N.D.Jute Products Assam Tea Bag Under Process
6. M/s. Sai Venkatewara Jutex (P) Ltd. Andhra Pradesh Spinning - do-
7. M/s. Kaliagunge Agro Trading Pvt.Ltd. West Bengal Spinning - do-
8. M/s. Aab Mham Trimex Pvt. Ltd Tamil Nadu Particle Board Sent for revision
9. M/s. Kalnga Agra Trading Pvt.Ltd. West Bengal Spinning Rs. 25,17,500/-
10. M/s. Sai Balaji Jutex (P) Ltd. Andhra Pradesh Jute Carpet Bank Appraisal
received
11. M/s. Super Fibre Ltd. Haryana Haryana Weaving Sanctioned
12. M/s. S.V.M. Jute Webs Ltd. Andhra Pradesh Non Woven -do-
Fabrics
13. M/s. G.S. Jute (P) Ltd. West Bengal Spinning -do-
14. M/s. G.D. Cement & Twine (P)Ltd. Assam -do- -do-
15. M/s. East India Commercial Andhra Pradesh Wet Processing -do-
IMPORT OF JUTE GOODS
The import of jute goods during 2003-04
(April 2003-February 2004) stood at 8295
tonne valued at Rs. 2139.08 lakh approxi-
mately as against 6892 tonne valued at
Rs 1792.18 lakh in the corresponding pe-
riod of last financial year, registering rise
of 20.35 per cent in terms of quantity and
19.35 per cent in terms of Indian Rupees
respectively.
Support Price for Raw Jute: Minimum
support price of TD-5 grade jute ex-Assam
is being fixed by the Government of India
on the basis of recommendation of the
Commissioner for Agricultural Costs and
Prices (CACP). Minimum support price for
TD-5 grade of jute grown in Assam had
been raised from Rs. 850/- per quintal for
the 2002-03 jute season to Rs. 860/- per
quintal for the jute year 2003-04 (July-
June). On the basis of MSP declared by
the Government of India, grade-wise price
differentials are being fixed by the Jute
Commissioner for every jute year (July-
June). The minimum support prices for all
grades of jute and mesta for various up-
country markets in different States are
widely published through radio, television,
newspapers and other media.
RAW JUTE PROCUREMENT
During the 2002-03 (July-June) jute sea-
son, cumulative procurement of jute and
mesta by JCI and its agent co-operative
ANNUAL REPORT 2003-04
137
over 14 years. The number of sick mills at
present is 37, excluding 1 closed mill. The
number of mills referred to BIFR is at
present 30. Out of the total 78 jute mills,
61 jute mills are located in West Bengal, 3
each in Bihar and U.P. 7 in Andhra Pradesh
and 1 each in Assam, Orissa, Tripura and
M.P. Ownership-wise division is: - 6 mills
are under Government of India’s PSU, 4
mills (Bharat, Tripura, Katihar & Konark) are
under State Governments, 2 mills (Assam
& New Central) are in the cooperative sec-
tor and 66 are privately owned mills. As
on 1.1.2003 total number of looms in-
stalled in jute industry stood at 46,330 and
installed spindles in jute mills other than
100% export oriented units was 6,68,318
comprising 5,75,042 fine spindles and
93,276 coarse spindles. As on 1.1.2003,
installed spindles in 100% managed ex-
port-oriented units stood at 11,736, with
fine spindles numbering 10,096 and
coarse spindles at 1640. The maximum
achievable capacity in jute mills other than
100% export oriented units (on the basis
of 300 working days) is estimated to be of
21.26 lakh tones per annum. As on 30.9.03
total number of jute mills lying closed was
13, affecting 53,002 jute mills’ workers, in-
cluding permanent workers. They are : I)
Kanpur Kamlapat Udyog, with labour force
of 3418, ii) Gourepore Jute Mill with labour
force of 1136 from 4.4.1998, iii) New Cen-
tral Jute Mill with labour force of 8604 from
29.12.02, iv) Union Unit (NJMC) with la-
bour force of 1816 from 15.1.02, v)
Alexandra unit (NJMC) with labour force
of 2117 from 1.9.02, vi) National Unit
(NJMC), with labour force of 11,746 from
societies stood at 13,13,919 bales equiva-
lent to 23,65,053 quintals which accounts
for about 12% of the total crop estimated
at 110 lakh bales and 14% of the cumula-
tive total arrivals of 96.7 lakh bales. Apart
from involvement of 171 purchasing
centers of JCI, 74 co-operative societies
of the jute growing States consisting of 62
co-operative societies in West Bengal, 9
in Bihar, 1 each in Meghalaya, Tripura and
Andhra Pradesh participated in MSP op-
eration. To roll over the stocks of raw jute
of JCI, linkage of lifting of raw jute stock
held by JCI was made compulsory against
Production Control Orders of B.Twill Bags
issued to jute mills for supply on DGS&D
account since July, ’02 onwards and cu-
mulative quantity of raw jute stocks, includ-
ing mesta held by JCI linked up to
31.03.2004 stood at 2,52,663 MT. During
the 2003-04 jute season, as on
31.03.2004, cumulative procurement by
JCI, in association with cooperative soci-
eties, stood at 2.01 lakh tonne of raw jute.
Cumulative stocks of JCI linked with sup-
ply of B.Twill bags for delivery on DGS&D
account was 1,27,723.0 tonne as on
31.03.2004. Apart from involvement of 171
purchasing centres of JCI, 81 cooperative
societies consisting of 69 cooperative so-
cieties in west Bengal, 10 in Bihar, 1 each
in Assam and Meghalaya so far partici-
pated in the MSP operation.
INDUSTRIAL AND LABOUR
SCENARIO
Total number of jute mills in the country is
78 out of which one jute mill at Kanpur in
Uttar Pradesh is continously closed for
MINISTRY OF TEXTILES
138
17.2.03, vii) Alliance with labour force of
3933, viii) Calcutta with labour force of
1257, ix) Hooghly Jute Mill with labour
force of 4394, x) Ludlow Jute Mill with la-
bour force of 6366 , xi) Kanpur Jute Mill
(UP) closed with labour force of 1040 from
13.4.87, xii) Rameshwara in Bihar with la-
bour force 3773 and xii) Titaghar with la-
bour force of 3402.
RAW JUTE SCENARIO
With a jute crop estimated at around 110
lakh bales, carry over stocks of 16 lakh
bales from 2001-02 and estimated import
of 9 lakh bales, raw jute supply position
was surplus as against total estimated
demand of 101 lakh bales consisting of
mill consumption estimated at 93 lakh
bales and other types of consumption at
8 lakh bales, thus leaving a carry forward
stock of 34 lakh bales at the end of 2002-
03 jute season. For 2003-04 season, raw
jute crop has been estimated at 90.00 lakh
bales of 180 kg each. As per estimates
made by Jute Advisory Board, with esti-
mated opening stock at 34 lakh bales and
7 lakh bales as import, total supply is pro-
jected at 131 lakh bales. Consumption of
raw jute by mills is estimated at 93 lakh
bales and domestic and industrial con-
sumption at 8 lakh bales, thus leaving an
estimated closing surplus stock of 30 lakh
bales at the end of June 2003. Raw Jute
Balance Sheet may be seen from the
Table 11.9.
TABLE- 11.9
Raw Jute Balance Sheet
QTY: IN LAKH BALES
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04
Carryover 27.00 22.00 10.50 7.00 16.00 34.00
Production 83.00 78.00 90.00 105.00 110.00 90.00
Import 9.00 8.00 4.00 4.00 9.00 7.00
Domestic Consumption 7.00 7.00 7.50 8.00 8.00 8.00
Mill Consumption 90.00 90.50 90.50 92.00 93.00 93.00
Carry over 22.00 10.507.00 7.00 16.00 34.00 30.00
INTERNATIONAL JUTE
STUDY GROUP (IJSG):
The Fourth Session of Council of IJSG was
held at Dhaka on 11-12 June, 2003 and it
was attended by the Jute Commissioner
as representative of India. The major is-
sues discussed in the meeting were as-
sessment of world jute situation, collec-
tion of country-wise jute trade information
and statistics, preparation of a project pro-
posal on market development of jute prod-
ucts, formulation of standards for diversi-
fied jute products, progress of MOU with
FAO etc.
The 2nd and 3rd Meetings of Committee on
Projects (COP) of IJSG were held in Dhaka
on 2-3 April 2003 and 20-21 October 2003,
respectively. The 2nd Session of Commit-
ANNUAL REPORT 2003-04
139
tee was held under the Chairmanship of
the Jute Commissioner. In the 2nd Meet-
ing, status of various on-going and pipe-
line projects, new project ideas, financial
requirement for projects, etc. were re-
viewed. The major issues discussed in the
3rd session of the Committee chaired by
Joint Secretary, Ministry of Jute, Govt. of
Bangladesh include I) review of progress
reports on on-going projects and updated
position of pipelines projects with fund
commitments and ii) recommendation to
seek funding for new and approved
projects from International Agencies like
FAO, CFC, etc.
The Second meeting of the Private Sector
Consultative Board (PSCB) of the IJSG
held on 10th June, 2003 in Dhaka inter-alia
recommended, a) formation of a sub-com-
mittee to prepare draft international stand-
ards for raw jute, jute yarn, jute fabrics and
jute geo-textiles for wider consultations, b)
setting up a sub-committee to increase co-
operation with buyers’/ consumers’ organi-
zations, c) compilation of data-base on
tariff and non-tariff barriers on jute and jute
products in different countries, d) stronger
focus on jute geo-textiles, low-cost jute pack-
aging and agro-textiles, etc.
NATIONAL CENTRE FOR
JUTE DIVERSIFICATION
The National Centre for Jute Diversifica-
tion (NCJD) was registered in January
1992 under the Societies Registration Act,
1860 and established in June, 1994 un-
der the Chairmanship of Secretary (Tex-
tiles) in order to give a focused attention
to the diversification efforts in the jute sec-
tor. NCJD is required to consolidate R&D
results of various institutes in jute and tex-
tiles and transfer these to the entrepre-
neurs for commercial production. It co-or-
dinates with various agencies and helps
the entrepreneurs in arranging technical,
financial and infrastructural support and
encourages them to take up production
and marketing of jute diversified products.
The Council of Governors of NCJD has
been reconstituted with effect from 24th
September, 2002 for a period of two years.
It consists of 25 members, drawn from vari-
ous sectors like Jute Entrepreneurs, Bank-
ing and the Government.
The NCJD is implementing the following
schemes for development of the jute-di-
versified sector:
(i) Jute Service Centre Scheme: Jute
Service Centres implement an action
plan jointly decided by NCJD and
respective State Government
departments. Seventeen centres are
currently in operation covering 12
States out of which three are in the
North Eastern region. In addition 4 Jute
Service Extension Centres are also in
operation out of which 3 are NE
Region and 1 in Rajasthan. Thrust
areas include amongst others the tribal
pockets of Orissa, Andhra Pradesh
and North East. During April 2003 –
March 2004, 293 training programmes
were organized wherein over 7325
beneficiaries were trained.
MINISTRY OF TEXTILES
140
(ii) Raw Material Bank Scheme:
Currently 31 Jute Raw Material Banks
(JRMBs) are in operation in 14 states.
Under the scheme, all jute related raw
materials are provided to NGOs and
entrepreneurs at mill gate prices. The
activities of RMB have been
broadened to engage them more in
the work of promotional nature without
in any way curtailing their existing
functions of yarn/fabric sale. These
RMBs have been engaged in exploring
additional usage areas for jute yarn,
fibre and fabric. They also take up
chemical processing for ready
availability of desired material by
weavers, artisans and craftpersons. In
the current year (till March 2004)
965.31 MT of yarn and 12.12 lakh
meters of fabrics worth Rs. 235.05 lakh
and Rs. 270.12 lakh respectively were
sold.
(iii) Design Development: Under the
scheme new and innovative designs
are developed by reputed designers,
which are provided to the
entrepreneurs and NGOs to better the
quality of products. NCJD has made
a systematic documentation of a large
collection of samples and technical
data of designs. Transfer of design and
skill to the weavers and artisans has
been done in several clusters so that
the same could be adopted in
commercial production. NIFT is also
involved in these efforts. During the
year 58 design development
programmes were conducted in which
348 designs developed and 1160
persons benefited.
(iv) Market Support Scheme: The market
support activities are organized by
NCJD in association with specified
marketing agencies through
Development Commissioner
(Handicraft), Department of Industry
and India Trade Promotion
Organisation. These activities support
regionally developed products getting
directly into the local market and
thereby enabling the producers to
assess the performance of their
products. During the current year, 32
exhibitions have been held till March
2004, participated by 413
entrepreneurs. NCJD also participates
in various fairs where the small units /
NGOs and other units are
represented.
(v) New Initiatives: Responding to the
assistance sought by various
organisations and administrative
authorities consequent upon the need
to reduce use of plastic bags, NCJD
has taken initiatives to develop various
designs of low-cost jute bags for the
consumers. Efforts have been made
to enhance the use of jute in the states
where use of plastic bags has been
banned. Under NCJD’s assistance, in
the North East region, a new jute
based fabric has been developed.
This fabric, which is blended with Eri
& Muga, is finding wide acceptance
as a furnishing material for diverse
application.
ANNUAL REPORT 2003-04
141
JUTE MANUFACTURES
DEVELOPMENT COUNCIL
The Jute Manufactures Development
Council (JMDC) was constituted as a
statutory body under the chairmanship of
Secretary (Textiles) with effect from 1.5.84
with the objective of increasing efficiency
and productivity in the jute industry, the fi-
nancing of activity for such development
and for matters connected therewith.
JMDC has been delegated all functions
relating to export promotion in jute sector
and to perform other such activities in the
domestic market of Jute Sector as are
performed by a commodity board. The
activities of the Council are funded from
the grants made available by the Central
Government from the proceeds of cess on
the production of jute levied under the Jute
Manufactures Cess Act, 1983.
JUTE TECHNOLOGY MISSION
The Government of India proposes to ex-
ecute the Jute Technology Mission (JTM)
during the Xth Plan with an overall outlay
of Rs.458.34 crore. The JTM has the fol-
lowing objectives:
• To improve yield and quality of jute
fibre;
• To strengthen existing infrastructure for
development and supply of quality
seeds;
• Improvement of quality of fibre through
better methods of retting and
extraction technologies;
• To increase the supply of quality raw
material to the jute industry at
reasonable prices and to develop
efficient market linkage for raw jute;
• To modernize, technologically
upgrade, improve productivity,
diversify and develop human resource
for the jute industry;
• To develop and commercialize
innovative technology for diversified
use of jute and allied fibres.
The JTM will be operationalised through
four Mini Missions:
Table 11.10
Mini Missions Objectives Executing Proposed
Ministry outlay (Rs.
in crores)
Mini Mission – I To strengthen agricultural research Ministry
and technology achievements of Agriculture 20.39
Mini Mission – II Development/extension of raw jute Ministry
and transfer of improved technology of Agriculture 19.79
Mini Mission – III To develop efficient market linkages Ministry
for raw jute of Textiles 155.26
Mini Mission – IV To modernize, technologically upgrade, Ministry of
improve productivity, diversify and develop Textiles
human resource for the jute industry. 262.90
TOTAL 458.34
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