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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


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)


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.


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


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:


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


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


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


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-


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.


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.


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

annual report 2003-04 - ministry of textilesministryoftextiles.gov.in/pdf/ar03-04-11.pdf · food...

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