Chapter Vi the Jute and Jute Textiles Industry

annual report 2007-08

CHAPTER VI THE JUTE AND JUTE TEXTILES INDUSTRY

71 ministry of textiles

72 annual report 2007-08

CHAPTER VI THE JUTE AND JUTE TEXTILES INDUSTRY

A Section of Jute Pavilion in Giftex 2007. Participation was jointly organized by JMDC and NCJD during 19-23 September, 2007, under the Jute Technology Mission (Mini Mission-IV)

he Jute Textiles Industry occupies labour intensive and as such its labour- an important place in the national output ratio is also high in spite of various Teconomy. It is one of the major difficulties being faced by the industry. industries in the eastern region, particularly Capacity utilization of the industry is around in West Bengal. It supports nearly 4 million 75 per cent. These apart, the jute industry farm families, besides providing direct contributes to the export earnings to the employment to about 2.6 lakh industrial tune of nearly Rs. 1200 crores annually. workers and livelihood to another 1.4 lakh persons in the tertiary sector and allied There are 77 composite jute mills in activities. The production process in the India, of which 60 jute mills are located Jute Industry goes through a variety of in West Bengal, 3 each in Bihar and activities, which include cultivation of raw U.P., 7 in Andhra Pradesh and 1 each in jute, processing of jute fibres, spinning, Assam, Orissa, Tripura and Chattisgarh. weaving, bleaching, dyeing, finishing and Ownership- wise division is: 6 mills are marketing of both, the raw jute and its under Government of India, 1 mill (Tripura) finished products. The Jute Industry is is under State Government, 2 mills (Assam

73 ministry of textiles

& New Central) are in the co-operative sector, and 68 are in private sector.

As on December 1, 2006, total number of looms installed in jute industry stood at 46,328, consisting of 24,261 Hessian looms, 20,159 sacking looms, 1,099 C.B.C looms and others at 809. The installed spindles in jute mills, other than 100% export oriented units, were 6,95,006 comprising of 5,96,266 fine spindles and 98,740 coarse spindles. As on December 1, 2006, installed spindles in 100% export oriented units stood at Raw Jute. 12,192, with fine spindles at 9,712 and coarse spindles at 2,480. The maximum PRODUCTION OF JUTE GOODS installed capacity in jute mills, other than 100% export oriented units (on the basis of During 2006-07 (April-March), total 320 working days per year), is estimated at production of jute goods was at 1356.30 2.14 million tonnes per annum. thousand M.T compared to 1582.2 thousand M.T. in the corresponding period In exercise of the powers conferred by of 2005-06. The unusual fall in production sub-section (1) of Section 3 of the Jute during 2006-07 over the previous year is Packaging Materials (Compulsory Use in attributable to strike in jute mills in West Packing Commodities) Act, 1987, Ministry Bengal w.e.f. January 5, 2007, which of Textiles issued Notification dated August continued upto March 8, 2007. During 9, 2007, stipulating that 100% foodgrains 2007-08 (upto Oct., 2007), production of and sugar to be compulsorily packed in jute jute goods is 1024.1 thousand M.T. as packaging material. The Notification came against 869.3 thousand M.T. during the into effect from the date of its publication corresponding period of 2006-07. and remained valid upto June 30, 2007. Trend in production of jute goods from Raw Jute 2000-2001 onwards are at table 6.2.

Raw jute crop is an important cash crop to the farmers. Cultivation of raw jute crop provides not only fibre, which has industrial use, but also jute stick which is an important fuel to the farming community. Raw jute is produced mainly in the States of West Bengal, Bihar, Assam, Orissa, Andhra Pradesh, Tripura and Meghalaya. The XIth Five Year Plan has projected that the production target of jute and mesta will be 129 lakh bales in the terminal year of the XIth Five Year Plan. Jute products DOMESTIC OFF-TAKE OF JUTE GOODS The supply-demand position of raw jute including mesta from 2002-03 to 2007-08 During 2006-07 (April-March), total do- is at table No. 6.1. mestic consumption of jute goods was

74 annual report 2007-08

Table 6.1 RAW JUTE BALANCE SHEET (Qty : In lakh bales of 180 KG of each bale) 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 (A)SUPPLY Projected i) Opening stock 16 34 33 14 8 23 ii) Jute and Mesta crop 110 90 75 85 100 95 iii)Import 9 5 4 7 4 4 Total : 135 129 112 106 112 122 (B)DISTRIBUTION iv)Mill consumption 93 88 90 90 81 91 v)Domestic/industrial 8 8 8 8 8 9 consumption vi)Export Neg Neg Neg Neg Neg Neg Total: 101 96 98 98 89 100

(C)CLOSING STOCK 34 33 14 8 23 22

Source: Jute Advisory Board

Table 6.2 ( QTY. in’000’ M.T.)

(April-March) Hessian Sacking CBC Yarn Others Total

2000-01 338.0 952.8 6.6 212.9 114.9 1625.2 2001-02 275.3 1034.0 5.0 194.8 91.7 1600.8 2002-03 338.3 1000.0 4.7 182.0 96.8 1621.8 2003-04 305.2 979.3 4.7 197.7 84.4 1571.3 2004-05 310.3 992.0 4.1 212.7 94.0 1613.1 2005-06 320.0 1007.4 6.2 114.3 134.2 1582.1 2006-07 250.3 874.7 2.9 108.2 120.2 1356.3 2007-08(Apr/Oct) 207.5 645.7 2.7 104.2 64.0 1024.1 2007-08 (projected) 337.9 952.9 4.6 178.6 150.9 1624.9

1,215.4 thousand M.T as against 1,377.8 agencies was 11,70,975 bales ( 3,89,349 thousand M.T in the corresponding period MT) against 14,58,135 bales (4,84,829 MT) of 2005-06, recording a fall of 11.8%. Dur- in 2005-06. In 2007-08 (upto November), ing 2007-08 (upto September 2007), the 9,67,890 bales (3,21,823 MT) have been domestic consumption of total jute goods purchased as against 8,79,294 bales is 701.0 thousand M.T. as against 623.9 (2,92,365 MT ) during the corresponding thousand M.T in the corresponding period period of 2006-07. of 2006-07. During 2006-07, the B. Twill bags Trend in domestic consumption of jute purchased by different foodgrain procuring goods from 2000-2001 are at table 6.3.

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Table 6.3 QTY IN ‘000 M.T. (April-March) Hessian Sacking CBC Others Total 2000-01 269.2 934.8 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 2003-04 253.3 910.0 0.3 179.3 1342.9

2004-05 249.5 996.2 1.1 178.4 1424.1

2005-06 237.6 974.2 0.7 165.3 1377.8 2006-07 209.1 854.4 0.5 152.2 1216.2 2007-08 149.3 579.2 0.5 101.5 830.5 (Apr/Oct)) 2007-08 240.7 964.7 0.3 162.2 1367.9 (projected)

PRICE SITUATION OF RAW JUTE The lesser consumption of raw jute has affected the market which continued at the The jute season 2006-07 started with a end of the jute season of 2006-07. In view carryover stock of 8.00 lakh bales with of the fall in prices of raw jute, JCI entered estimated production of about 100.00 into the market and purchased around lakh bales. The price of raw jute from 2.45 lakh quintals (1.36 lakh bales) of raw the very beginning of the season was jute under MSP. In order to dispose-off this ruling above support level. Keeping in MSP stock, the entire quantity of raw jute view the rising trend in raw jute prices had been linked with B.Twill allocation. and earning some profit in future, the Jute Corporation of India (JCI) entered The jute season of 2007-08 began with into the raw jute market and purchased a carryover stock of 23.0 lakh bales with around 5.0 lakh bales of raw jute under estimated production of 95.00 lakh bales Commercial Operation. With the entry of and import of 4.0 lakh bales, making a total JCI in commercial operation, jute price availability of 122.00 lakh bales. In view of further increased. the large availability of raw jute, the market sentiment remained dull. JCI has entered In the beginning of December, 2006, into some pockets and purchased around several Central Trade Unions had served a notice to all jute mills located in West 8.0 lakh quintals (4.44 lakh bales) of raw Bengal calling an indefinite strike from jute under MSP. January 5, 2007. This notice had a dampening effect on the raw jute prices. PROCUREMENT OF RAW JUTE UNDER The strike in jute mills in West Bengal MSP AND FIXATION OF SUPPORT began w.e.f. January 5, 2007, and PRICE continued upto March 8, 2007. Jute procurement under MSP and Due to the strike in jute mills, the demand commercial operation undertaken by the of raw jute had sharply fallen and around Jute Corporation of India (JCI) during the 12.0 lakh bales were less consumed. last several years are at table 6.4.

76 annual report 2007-08

Table 6.4

Procurement of raw jute by JCI (Qty: In ‘000’ Bales) Year Support(MSP) Commercial Total 1999-00 18 89 107 2000-01 464 0 464 2001-02 246 0 246 2002-03 1314 0 1314 2003-04 1118 0 1118 2004-05 352 0 352 2005-06 0 141 141 2006-07 136 348 484 2007-08 444 000 444 The minimum support price is fixed by the support price. The MSP announced by Govt. on the basis of recommendations Government of India during the last several of the Commission for Agricultural Costs years are at table 6.5. and Prices (CACP). While formulating the agricultural price policy, CACP takes EXPORT PERFORMANCE AND into account various factors such as cost RELATED DEVELOPMENT of production, over all demand/supply During 2006-2007 (April-March’07), the situation, domestic and international prices and effect of minimum support price on export, which was Rs.10,552 Million general price level. equivalent to about US$ 241 Million, was lower by 11% in Indian Rupees and by CACP every year also conducts meetings 10% in average dollar terms as compared of all stake holders to decide minimum to the same period of 2005-2006 Table 6.5

MSP of TD-5 grade of raw jute %age increase Year Ex- Assam (Rs./Quintal) over previous year

1998-99 650 14.0 1999-00 750 15.4 2000-01 785 4.7 2001-02 810 3.2 2002-03 850 4.9 2003-04 860 1.2 2004-05 890 3.5 2005-06 910 2.2 2006-07 1000 9.9 2007-08 1055 5.5 2008-09 1250 18.5

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(2,85,800 MT/Rs.11,862 Million/US$ 267 2007-08 ( upto November, 2007), have Million). In terms of quantity, export during been estimated at 1,42,000 M.T. valued at 2006-2007 was to the tune of 2,42,800 Rs. 7,755 million equivalent to about US$ M.Ton, which was also lower by 15% as 197 million. compared to same period of 2005-2006. Going by the export performance the Government fixed exports target of jute achievement of export target during 2006- goods for 2007-08 at US$ 381 million. Going 07 has been to the extent of 80%. by the estimated export during current year (April-November 2007 i.e. 8 months) This declining trend in cumulative exports the achievement works out to 878% of has been mainly attributable to fall in proportionate target of US$ 254 million. exports of major exportable items like Hessian by 29% in quantity and by 24% USA, Egypt, Belgium, Turkey and Syria in value, and Diversified Jute Products had been the five major importing countries (JDPs) by 18% in value terms. However, for Indian jute goods which accounted for export of Yarn has shown an upward trend about 46% of total exports of jute goods in by 13% in quantity and 14% in value terms value terms. as compared to corresponding period of previous year. Similarly, Sacking also has The major exportable items of Indian shown an increasing trend by 4% in value jute goods are Hessian, Sacking, Yarn of terms during 2006-07 as compared to traditional products, Floor coverings and 2005-06. Hand & shopping bags in the Diversified Jute Products (JDP) sub-sector. Recently The market feedback reports reveal that Food Grade Jute Cloth and Bags (FGJP) during March 2007, overseas business and Jute Geo Textiles (Soil Saver) have remained dull, with fresh enquiries down emerged as the other potential exportable to a trickle and most shipments being jute items. restricted to earlier transactions. Buyers preferred to wait for a falling market even IMPORT OF JUTE GOODS though there has been depreciation of dollar vis-à-vis the Rupee. Infact, with During 2006-07, the volume of import closure of 55 jute mills in West Bengal due of jute goods stood at 60.93 thousand M.T.valued at Rs.171.63 crores against to strike in jute industry between 5th January, 77.02 thousand MT valued at Rs.172.56 2007 and 8th March, 2007, production and crores in 2005-06.This implies a fall of exports were adversely affected. However, 20.8% in terms of quantity and 0.5% in to meet the business commitments, value terms over 2005-06. The volume of there were imports from Bangladesh but import of raw jute during 2005-06 stood at volumes were hardly sufficient, there being 94.36 thousand M.T. valued at Rs.150.31 uncertainties in delivery schedule due to crores as against 136.22 thousand M.T. political disturbances. Thus, turnover was valued at Rs.189.77 crores. Thus import extremely light with restricted volumes of of raw jute both in terms of quantity and transaction value have decreased by 30.7% and Export performance 20.8%, respectively. Import of Jute goods during 2007-08(April/Nov.) has, however, On the basis of dispatches of jute goods increased by 4% to 35.78 thousand M.T. for exports, based on the returns of as against34.56 thousand M.T. in the jute mills, exports of jute goods during corresponding period of last year. Import of

78 annual report 2007-08

raw jute has also increased substantially by Jute Manufactures Cess Act,1983, by the 98 % to 139.26 thousand M.T. as against Government. 70.32 thousand M.T. during the last year. The Govt. of India, through a Gazette Trend in import of jute goods and raw jute Notification dated June 14, 2007, is at table 6.6. reconstituted the Jute Manufactures Development Council for a period of two DEVELOPMENT AND REGULATORY years w.e.f. May 21, 2007. ORGANISATIONS IN JUTE SECTOR JMDC website is www.jmdcindia.com (a) Organisations under Ministry of Textiles National Centre for Jute Diversification (NCJD) Jute Manufactures Development Council (JMDC) The National Centre for Jute Diversification (NCJD) was registered in January 1992, The Jute Manufactures Development under the Societies Registration Act, 1860, Council (JMDC) is a Statutory Body and established in June, 1994, under the constituted under the JMDC Act, Chairmanship of Secretary(Textiles) to 1983, under the Chairmanship of give focused attention to the diversification Secretary(Textiles) on May 1, 1984, with efforts in the jute sector. NCJD is required the objective to increase efficiency and to consolidate R&D results of various productivity in the jute industry, and the Institutes in jute and textiles and transfer financing of activities for such development these to the entrepreneurs for commercial and for matters connected therewith. JMDC production. It co-ordinates with various has been delegated all functions related to agencies and helps the entrepreneurs Export Promotion in the jute sector and in arranging technical, financial, and mandated to perform other such activities infrastructural support and encourages in the domestic market of jute sector as them to take up production and marketing are performed by a Commodity Board. of jute diversified products. The activities of the Council are funded through grants from the proceeds of Cess The Council of Governors of NCJD is on the production on jute levied under the reconstituted every two years. The last

Table 6.6

(April- 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 March) ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value Raw 133.79 126,95 107.64 106.36 85.98 89.97 136.22 189.77 94.36 150.31 Jute Jute 7.35 19.26 9.99 25.44 32.17 70.74 77.02 175.56 60.93 171.63 Products Total 141.14 146.21 117.63 131.80 116.15 160.71 213.24 362.33 155.29 321.94

%age over last year 63% 16% -17% -10% 0.4% 22% 80% 126% -27% -11%

79 ministry of textiles

Council was reconstituted on June 11, l Review of projects undertaken by 2007. It consists of 25 members, drawn from Indian Jute Industries Research various sectors like Jute Entrepreneurs, Association(IJIRA) and other R&D Banking and the Government. NCJD is institutions and recommending for implementing schemes for development of approval by Ministry of Textiles. the Jute-diversified sector and to provide l Supervision and coordination of backward and forward linkages to new Government of India schemes for and budding entrepreneurs, NGOs and modernization of jute industry, such women’s groups. as Jute Technology Mission, TUFS (Technology Up-gradation Fund Office of Jute Commissioner Scheme) etc.

The office of Jute Commissioner is a l Assisting in formulation as also subordinate office of Ministry of Textiles. revision of productivity norms for jute It is a regulatory body to implement the industry which will indicate norms of production, wastages, raw jute inputs, Jute Packaging Materials (Compulsory power requirement of jute products. Use in Packaging Commodities) Act 1987 and provisions of Jute and Jute l To analyze trends in production, Textiles Control Order 2000 (issued consumption, supplies, prices etc under Essential Commodities Act 1955). of raw jute and jute goods and to transmit reports/returns to different Jute Commissioner is the legal authority Government bodies, RBI, FAO Rome, prescribed in these statutes. The Jute International Jute Study Group (IJSG) Commissioner attends to production, Dhaka. distribution for domestic consumption and exports and development of jute as well as l To prepare reports and notes jute products. periodically on economic aspects of the Government policies, schemes Important functions of the Jute relevant in jute sector including fiscal Commissioner office include- incentives, monitoring performances of implementing agencies. l Implementation of the Jute Packaging l Collection, compilation and Materials (Compulsory Use in maintenance of statistical data of Packaging Commodities) Act 1987. opening stocks, production, domestic consumption, exports, imports, l Issues Production Control Orders closing stocks and prices of raw jute (PCO) under Jute & Jute Textiles and jute goods and transmission of Control Order 2000, on jute mills for consolidated reports to Ministry of supply of B.,Twill bags to Government Textiles, CSO, RBI FAO, IJSG etc. agencies (DGS&D) and FCI. Jute Commissioner office website is l Fixation of MSP of raw jute for http://jutecomm.gov.in/ different areas and grades on reports (b) Other Organisations supported by of Commission on Agricultural Costs Ministry of Textiles in Jute Sector and Prices. International Jute Study Group (IJSG): l Fixation of monthly price of B.Twill Jute bags based on Tariff Commission’s The International Jute Study Group Report. (IJSG) is an intergovernmental body

80 annual report 2007-08

set up under the aegis of UNCTAD to Since its inception, two officers from function as the International Commodity Government of India have been Body (ICB) for Jute, Kenaf and other elected as Secretary General of the Allied Fibres. Organisation. Shri T. Nandakumar, was elected as its first Secretary-General in The IJSG was set-up to succeed the 2002, and thereafter, the Council of the erstwhile International Jute Organisation IJSG in its eighth meeting held on May (IJO), which entered into the liquidation 2-3,2007, appointed Shri Sudripta Roy, mode in the year 2000. It formally as Secretary General, IJSG for a period entered into force on and from 27 April of two years with effect from September 2002 with the completion of the process 6, 2007. of Definitive Acceptance/Acceptance IJSG Website is www.jute.org by Governments of Bangladesh, India, Switzerland, and the European INCENTIVES TO JUTE SECTOR Community representing its 27 member (a) Extension of Duty Entitlement countries and representing over 60% Pass Book (DEPB) benefits to jute trade (import and export). The Jute products IJSG administers the provisions of the successor Agreement on Jute and Jute The Director General of Foreign Trade products, 2002 adopted by the United w.e.f July 3, 2006, revised the DEPB rates Nations. of the jute products as in table 6.7. Table 6.7 Product Group: Miscellaneous Product Code: 90

S.No. Description DEPB Rate Value Cap for (%) DEPB entitlement 24 Jute Soil Saver 1.00 25 Jute Yarn / Jute Twine 1.00 26 a. Hessian Cloth 3.00 Rs.40/Kg b. Hessian made-up 3.00 Rs.55/Kg 27 a. Sacking Cloth 4.00 Rs.30 / Kg b. Sacking made-up 4.00 Rs.40 / Kg

Product Group : Plastics Product Code : 63 Sl.No. Description DEPB Rate % Value cap for DEPB entitlement 1. Hessian Bags with LDPE/HDPE/PP 3.00 Rs.175/Kg liner/Lamination and with/without Zip- per/Handle 2. Jute Bags with HDPE liner/ LDPEliner/ 3.00 Rs.175/Kg. Lamination with/without Zipper/Handle 3. PVC fabricated bags ( made from PVC 4.00 -- leather cloth backed jute and polypro- pelene) 4. Poly jute bags 3.00 --

81 ministry of textiles

(b) Technology Upgradation Fund (a) Jute softening & carding, drawing, Scheme (TUFS) spinning and weaving

The Scheme provides a focal point for (b) Spinning and weaving/knitting of jute modernization efforts through technology blends upgradation in the industry. The salient (c) Jute-blended garment/made-up features of the Scheme are as follows: manufacturing l Under the Technology Upgradation (d) Processing of jute products Fund Scheme (TUFS), interest reimbursement of 5% on the interest (e) Processing of jute-blended products actually charged by identified (f) Material handling financial institutions on sanctioned projects is permissible and The technology levels are benchmarked Technology Upgradation ordinarily in terms of specified machinery for means induction of state of-the-art each sector of the textiles industry. The or near state-of -the-art technology; machinery with technology levels lower l Industrial Finance Corporation of than that specified is not permitted for India ((IFCI) is the Nodal Agency for funding under the TUF Scheme. Jute sector; and The progress of sanction and disbursement l Other than term loans, a number of under the Technology Upgradation Fund instruments like Deferred Payment Scheme, as on October 15, 2007, is at Guarantee Schemes (DPG), lease table 6.8. finance, non-convertible debentures, hire purchase scheme operated by (c) Jute Technology Mission NSIC etc. have also been additionally The Government, on June 2, 2006, covered under the scheme. approved the Jute Technology Mission IFCI has co-opted three State Finance (JTM). The Department of Agricultural Corporations (SFCs), one State Research & Education, Ministry of Industrial Development Corporations Agriculture, launched the Mini Mission (SIDC), seven commercial banks, I of the JTM on November 9, 2006. The three All India Financial Institutions Department of Agriculture & Cooperation, (AIFIs) and Exim Bank for financing the Ministry of Agriculture, launched the Mini- jute industry. The Technical Advisory Mission II of JTM on December 21, 2006. Committee determines the eligibility for The Mini Mission III & IV of JTM were assistance under the scheme, which launched by the Ministry of Textiles on consist of the Textiles Commissioner February 6, 2007. as the convenor, Jute Commissioner and technical experts from the Textile The Jute Technology Mission (JTM) will th Research Institutions (TRAs), industry be executed during the XI Plan with an and academic field covering the different overall outlay of Rs.355.55 crores. The segments. objectives of JTM are:

The following category of jute machinery l To improve yield and quality of jute is eligible for assistance under TUFS. fibre;

82 annual report 2007-08

Table 6.8 (Rs. Crores) Applications No. of Applications 34

Sanctioned Project Cost 281.75 Amt. Under TUFs 144.46 No. of Applications 0 Pending Project Cost 0.00 Amt. Under TUFs 0.00 No. of Applications 3 Rejected Closed Project Cost 15.95 Amt. Under TUFs 7.62 No. of Applications 30 Assistance Disbursed Amt Under TUFS 128.60 l To strengthen existing infrastructure collections from Cess on Jute and is for development and supply of quality mandated to undertake the following seeds; activities out of the said collections: l Improvement of quality of fibre l Facilitating development work related through better methods of retting and to jute agriculture with respect to extraction technologies; improvement of quality and increase in the yield of jute. l To increase the supply of quality raw material to the jute industry at l Promotion of better marketing and reasonable prices and to develop sale of jute. efficient market linkage for raw jute;

l l To modernize, technologically Improvement of productivity and upgrade, improve productivity, efficiency of the jute industry. diversify and develop human resource l Promoting standardization of jute for the jute industry; manufactures. l To develop and commercialise innovative technology for diversified l Market development. use of jute and allied fibres. l Sponsoring scientific, technological The operationalisation of JTM through its and economic research. four Mini Missions is at table 6.9. l Collection and dissemination of (d) Non Plan Schemes of JMDC information to all the stakeholders.

Jute Manufactures Development Council, During the year 2007-08, JMDC, from by virtue of the JMDC Act 1983 and Jute its Non-plan grants has implemented Manufactures Cess Act, 1983, receives following schemes:

83 ministry of textiles

Table 6.9

Mini Missions Objectives Executing Ministry Proposed outlay (Rs in crores)

Mini Mission – I To strengthen agricultural research Ministry of Agriculture 7.06 and technology achievements

Mini Mission – II Development/extension of raw jute Ministry of Agriculture 49.90 and transfer of improved technology Mini Mission – III To develop efficient market linkages Ministry of Textiles 38.60 for raw jute Mini Mission – IV To modernize, technologically up- Ministry of Textiles 260.00 grade, improve productivity, diversify and develop human resource for the jute industry. TOTAL 355.55

(i) EMA Scheme – receiving claims (vi) During 2007-08, JMDC has taken up pertaining to the export of 2006-07, field survey of the JDP manufacturers at least upto 31.12.2007, process and exporters operating throughout and disburse the claims of EMA the length and breadth of the country. accumulated so far (budgeted at Rs.25 The resultant directory of the small crores) entrepreneurs in the jute sector will be (ii) Receiving, processing and published. disbursement of residual claims (vii) The Action Plan for 2007-08 covers under JMDC Incentive Scheme for different activities for promotion of the Modernisation of Jute Industry, use of jute and its array of products (iii) Funding Institute of Jute Technology, both in domestic and export market. In on approval and extension of the MoU this direction, JMDC organizes: towards sustainable human resource l Exclusive Jute Fairs in India. development, l Participation in regional level, (iv) Implementation of the Pilot Project on national level and international level construction of Rural Road by using expositions held in India and abroad. Jute Geo-Textiles under PMGSY. l Organisation of Seminars, Conferences, Buyer-Seller Meets, (v) Follow up of the Life Cycle Analysis Jute delegations and Contact Study on Jute, Eco-label established Promotion Programmes in India therein, Brandisation & Image Building and abroad. of Jute by establishment of Brand, engagement of Brand Ambassador, l Conducting sustained generic establishment of Brand Equity Fund publicity campaigning of jute as an for Jute and Permanent Showrooms eco-friendly and bio-degradable for Diversified Jute Products. product.

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(e) Reservation of packaging certain jute growing districts in the Country. commodities in Jute Approximately, the arrival of raw jute in these market yard should be 10,000 MT The Jute Packaging Materials and above per annum. The estimated (Compulsory use in Packing cost of these jute specific market yards Commodities) Act, 1987 (JPM Act) came is Rs.1 crore. The scheme would be into operation with effect from 9th May providing 60% funding and APMCs would 1987. It provides for the compulsory use contribute balance 40% of the total cost of jute packaging material in the supply besides providing/acquiring land for the and distribution of certain commodities in purpose of establishment of the market the interests of production of raw jute and yards. jute packaging material and of persons engaged in the production thereof and 2. Construction of JCI Departmental for matters connected therewith. Purchase Centres

JPM Act provides for the constitution of In this scheme, it is proposed to construct a Standing Advisory Committee (SAC), 20 such facilities under the aegis of JCI in which would recommend the commodity strategically important jute growing States or class of commodities or percentage where there is standing need for the same. thereof to be packed in jute material. The cost of construction is estimated at After considering the recommendations Rs.1 croroe per DPC including cost of of the SAC, the Central Government acquisition of land. The entire cost will be issues appropriate orders for mandatory packaging of certain commodities in jute borne by Government of India. packaging material. 3. Construction of Retting Tanks After considering the recommendations Since retting is the most important part of the SAC and other inputs such as of jute cultivation in terms of quality fibre existing level of usage of jute material, production, non-availability of adequate quantity of raw jute available quantity retting water poses hindrance in of jute materials available, protection of interests of persons engaged in the jute production of quality output. Encouraged industry and in the production of raw by the successful outcome of our earlier jute, the need for continued maintenance project on construction of Community of jute industry, environmental factors Retting Tanks, it is proposed to construct etc, the government has notified 100% Retting Tanks to facilitate retting at least compulsory packing for food-grains and one in each jute producing districts of sugar in jute bags for the jute year 2007- India in phased manner. In next five years, 08 (July-June). it is proposed to construct 50 retting tanks in staggered manner to provide retting SCHEMES OF JUTE TECHNOLOGY water to the jute growers. It can also be MISSION utilized for demonstration and adoption of new retting methods like Biotechnological MINI MISSION – III Retting Method by use of inoculum in 1. Development of Market Yard order to improve the quality of jute fibre as well as reducing retting period. 90% of the Under this scheme, it is proposed to cost of construction of retting tank would construct 10 marketing yards in major be sponsored under this scheme, and the

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remaining 10% would be contributed by MINI MISSION –IV. the beneficiary. A Scheme for Modernisation of 4. Demonstration of Retting Organised Jute Mills: Technology and Training to Jute 1. Training of Workers & Supervisors. Growers. Under this scheme, training programmes Latest techniques in the jute cultivation, for the supervisors and workers for updating improved retting methods will be their knowledge and improve their skill in popularized through this programme. both processing stages and maintenance Expertise of CRIJAF and NIRJAFT are organised in various jute mills through in the allied fields will be the source the Institute of Jute Technology (IJT). of knowledge bank. This scheme will Various training manuals and modules help in upgrading the quality of jute have been developed and appropriate produced and the changing demand of Human Resource Development (HRD) the industry can be taken care of. Under capsules designed and implemented under this scheme, a programme spread over the programme. A total of 300 programmes will be conduced and 15000 workers will five years has been formulated so that be trained over a span of five years. HRD maximum number of jute growers can be intervention is sought to improve the sill and brought under this training programme. update the knowledge of workers to match Local Panchayats and State Agricultural with the changed situation/environment. Departments will also be involved for successful implementation. The training 2. Machinery Development . programme are organized so that proper One of the main bottleneck for modernization dissemination of latest techniques can be of jute industry is lack of availability of new made available to the jute growers at large. technology machines for jute fiber. Under Follow- up measures are undertaken so this scheme, Research and Development that the training imparted is effectively efforts as well as the transfer of technology implemented .The training programmes at each stage of processing is to be are being conducted through JCI DPCs in intensified and appropriate activities taken the jute growing districts of India. up.

5. Development of Ribboners. For the development of new technology and high yielding machinery, a Machinery Already considerable work in this field has Development Centre (CJMD) would been done by CRIJF and NIRJAFT. In be established through PPP model. In this scheme, further developments of the addition, specific machinery development existing ones and to make them acceptable projects are being funded @ 75%, to be to the jute growers, concerned institutions taken up through the proposed CJMD, have been initiated. The infrastructure indigenous machinery manufacturers as of JCI will be utilized to distribute the well as research institutions who have the developed machines to jute growers. For credibility and required infrastructure. effective implementation of the project, 3. Productivity Improvement & TQM extensive demonstration before the Facilitation. growers would be organised to popularize the Ribboner Machine and to apprise them This scheme provides an integrated and about the benefit of use of the same. cohesive approach for supporting Jute

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Machinery Development Programmes The maximum subsidy available in this under Mini-Mission IV of JTM and thereby scheme is Rs.75 lakhs in case of existing considers time-bound proposals for mills, which may be enhanced to Rs.1 financial support. Following studies are crores for North Eastern States and Rs.1 planned in this scheme. crore for altogether new mills. l Total Quality Management B Scheme For Promotion of Jute Diversification: l Energy Management 1. Design & Development of Jute l Waste Management Diversified Products l Maintenance Management NCJD has been operating a scheme on design and product development of l Work Study & Ergonomics jute diversified products for the last few JMDC is conducting the studies by years. It has been observed that in order involving Institute(s) of repute at national to make jute products more acceptable to level consumers in different sectors, it is essential to incorporate innovative designs and 4. Acquisition of Machinery And also add newer product range for diverse Plant (Subsidy Component). application. It is contemplated that it would Under this scheme, the jute industry is be relevant to explore the characteristics being supported to adopt new technology of basic jute products, as that will help machinery as required for production of development of new products and new jute based products, conventional and non- application areas for jute. The subject conventional like foodgrade / odourless scheme also envisages to explore the use products, technical and industrial textiles, of jute yarn in Handloom sector, where the etc. The adoption of such new machinery scope of developing new design for fabric will enable the Indian Jute Industry to and other woven products is very high. cater to the demand of global market in The scheme covers areas like designing terms of cost and quality in the coming & developing jute fabric on handloom, for years. diversification and end uses. Similarly, research on jute composites could open Various items of machinery and equipment, up new application areas in the field of such as, Jute spreader machine, Spinning packaging like boxes, containers and also Preparatory System, Intersecting Gill, as a cushioning media. Finisher Drawing Frame, Apron/Slip Draft Flyer Spinning Frames, Ring Spinning 2. Scheme for helping NGOs and Frames, Traditional hessian looms, Women Self-Help-Groups (WSHGs) High Speed Flexible of Rapier looms and Sulzer (Projectile) and Rigid Rapier NCJDs assistance to voluntary Organisation (Denier)/Flexible Rapier (Sulzer) loom has been very effective. Such organizations will be acquired and installed by identified and those comprising of small and tiny mills/units. Support will be provided for entrepreneurs could effectively contribute the same @ 20% Capital Subsidy. The in mobilising jute activity, especially in rural entrepreneurs are free to choose between areas. Unemployed youth and women folk this Scheme or the interest subsidy could very conveniently adapt to such scheme under the TUFS. simple technologies that are required to

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produce jute-diversified products (JDP). 4. Scheme for Commercialisation of The technology dissemination activity is Technology. taken up in such a manner so as to make it more effective by engaging technical Under this scheme, NCJD would take personnel. In addition to the above up promotion of commercialization of inputs, the scheme includes a provision technologies by interacting with the different for matching finance for machinery State’s Department and the DICs, holding assistance. Such assistance will create an of different Technological Conferences environment, which will be conducive to around the country, counseling and the growth of voluntary sector. interactive programme for participation with different stakeholders, holding 3. Scheme for promotion of Jute products specific workshops in potential Diversification areas, technology experimentation and machinery and process development. The old schemes of the NCJD viz. Jute Service Centre Scheme, Jute Raw 5. Scheme for Setting up of Jute Parks Material Bank Scheme, Design/ Product for the diversified sector. Development Scheme, Market Support Scheme, Jute Entrepreneur Assistance This scheme aims at providing Scheme and the Schemes for the North entrepreneurs with support facilities East Region have been merged and similar to those available in Export renamed as the “Scheme for Promotion of Processing Zones. The aim of the Jute Diversified Products”. Scheme is to attract entrepreneurs / units investing in new small jute mills The objective of the scheme is to establish / spinning units / weaving units with a the competitive environmental advantage view to generate employment / upgrade of jute globally as well as boost the sale of technology to optimize exports based on jute goods by 50% globally and increase value addition. The scheme would be the share of JDPs to around 20% during executed through PPP mode on the lines the JTM period. In order to achieve the of SITP scheme of Ministry of textiles. objective as given in the National Jute The subsidy available under this scheme Policy 2005 an integrated approach for establishment of Jute park is 40%, is envisaged and conceptualized with subject to a maximum of Rs 7.5 Crored emphasis on following key elements: for NE states and Rs. 5 Crores for other states. Developmental Jute Service Centre Schemes Scheme C. Programmes for North East Region Input Related Jute Raw Material Bank 10 % of the Jute Technology Mission Scheme Scheme budget has been reserved for executing Marketing Market Promotion the JTM schemes in the North East Region Schemes Schemes And covering Assam, Arunachal Pradesh, Campaigns For Jute Meghalaya, Manipur, Mizoram, Nagaland, Diversified Products Sikkim and Tripura.