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CHAPTER XI Jute The jute sector has been playing an important role in the economy
of the country in general and the eastern region in particular. Apart from
contribution to the national exchequer from exports and through taxes and
levies, the jute industry provides sizeable employment in farms and
industries. About four million families, most of them small and marginal, are
engaged in the cultivation of jute and mesta and about two lakh workers are
employed in the jute industry. The first seven months of 2000-2001 has turned out to be by and
large favourable for the jute sector. With a good crop currently estimated by
Jute Advisory Board at around 95 lakh bales and the carryover stock of around 9.5 lakh bales from 1999-00
season the raw jute supply position is comfortable. As a result, the industry
has faced no problem in procuring raw jute at a reasonable price for
uninterrupted production of jute goods to cope with the demand. Jute goods
market continued to display mixed trends with prices of all goods showing
fluctuations. The market is expected to rule steady in the coming month, as all
foodgrains procuring agencies have finalised their advance requirement of a
quantity of 7.00 lakh bales of B.Twill bags for the forthcoming Rabi season
and began procuring such bags from Nov’2000 in addition to demand from sugar
sector which is likely to begin from Dec’2000. Production of Jute Goods Production of jute goods during 1999-2000(April/March) slightly
decreased by 0.4% to 15.90 lakh tonnes as against 15.96 lakh tonnes in
1998-99. This fall in production
was attributable to lower production of CBC and “other goods” goods due to
sluggish demand. Production during 2000-01(April/November) also recorded an
increase of 2.6% to reach 10.57 lakh tonnes from 10.30 lakh tonnes during the
same period of last year. However, if the current trend of production is
maintained, production of jute goods is likely to be around 16.00 lakh tonnes
in 2000-2001 (April/March). Domestic off-take of jute
goods and related developments Internal consumption of jute goods during 1999-2000 registered a
marginal growth by 1.6% to 14.27 lakh tonnes from 14.04 lakh tonnes during
the previous season. This was attributable to a rise in demand of jute bags
on Govt. account for packing foodgrains. Internal off-take during
2000-01(April/November) has also increased by 2.4% to 9.04 lakh tonnes from
8.83 lakh tonnes during the corresponding period of last year. According to
the Govt’s decision taken in line with the ILO convention regarding maximum
permissible weight to be carried by an adult, all state foodgrain procuring
agencies including FCI have placed Orders for 50-Kg. bags for the coming rabi season. After analysing the entire issues relating to future requirements
of jute bags for packing different specified end-user sectors covered by the
JPM Act, supply scenario for jute goods, etc. the Standing Advisory Committee
recommended 20% production of urea to be packed in jute bags compulsorily,
apart from stipulations of 100% foodgrains and sugar to be packed in jute
bags. Accordingly an Order was issued by the Government on 25-10-2000 and
this order is valid upto 30-6-2001. The performance in using jute bags by foodgrains and sugar
sectors as per stipulations of the Reservation Order has been satisfactory.
Overall Performance in using jute bags by Fertilizer (Urea) sector has also
been, by and large in order. Export of jute goods and
related developments Export of jute goods during 1999-2000(April/March) declined to
1.69 lakh tons valued at Rs.571.53 crores from 1.95 lakh tons valued at
Rs.628.92 crores during 1998-99. The decline in overall export was
attributable to competition from cheaper and lighter synthetics substitutes
and sharp reduction in selling prices by Bangladesh exporters. Export of jute goods during 2000-01(April/November) has, however,
increased to 1.21 lakh tons valued at Rs. 418.00 crores from 1.15 lakh tons
valued at Rs.378.30 crores during the same period of last year. The increase
in export is due mainly to rise in major exportable items like Hessian and
Sacking. For promoting export of jute goods, Government have taken various
measures which include the following :- (a) the
External Market Assistance Scheme operated by JMDC was restructured w.e.f.
01.04.2000 and confirmed for a period of one year for giving added thrust on
export of value added and diversified jute products. (b) special
thrust is being provided to re-orientation of R & D activities with special emphasis on enlargement
of production base for diversified and value added jute products. (c) acceleration
of export promotion programme by JMDC. (d) introduction
of Technology Upgradation Fund Scheme (TUFS) for textiles and jute industry. Support prices for raw
jute Minimum Support Prices are being fixed by the Government every
year on the basis of recommendations of the Commission for Agricultural Costs
and Prices. The minimum support prices for TD-5 grade of jute grown in Assam
has been raised from Rs.750.00 per quintal for 1999-2000 season to Rs.785.00
per quintal for 2000-01 season. The gradewise price differentials have been
fixed in such a manner as to motivate farmers to improve quality outturn of
their produce. The corresponding minimum support prices for all grades of
jute and mesta for various up-country markets in different states for the
current season have, accordingly, been revised upward and widely published
for information of all concerned. Industrial and labour
scenario There are 73 jute mills in the country, of which 59 mills are
situated in West Bengal, 3 each in Bihar and UP, 4 in Andhra Pradesh and 1
each in Assam, Orissa, Tripura and MP. At the end of October, 2000 the total
number of looms installed in the
industry stood at 43,989 and installed spindles at 552,420 for fine yarn and 84,848 for coarse yarn.
These jute mills employ approximately 2.00 lakh workers. The maximum
achievable spinning capacity in the organised mill sector is estimated to be
of the order of 19.00 lakh tonnes per annum. As on 13.11.2000, 7 mills are
lying closed affecting 18,340 workers. Table 11.1
Table 11.2
Raw Jute Scenario The Jute Advisory Board
in its last meeting held on 12.12.2000 projected the crop size at 94 lakh bales. Accordingly, the projected jute budget for
2000-2001 season and that estimated for 1999-2000 season are indicated in
Table 11.1. According to the estimate, the carryover stock at the end of the
current season i.e. June, 2001 is likely to be of the order of 13.00 lakh
bales which may be sufficient to take care of the normal consumption
requirement of the industry for nearly two months. A quantity of 6 lakh bales
consisting high grades jute for export production of various diversified
products is likely to be imported by Indian Jute Mills from Bangladesh in the
current season. Prices situation of raw
jute The 2000-01 season began with prices of raw jute ruling well above
the support levels in all the up-country markers fixed on the basis of
Rs.785.00 per quintal for TD-5 grade ex-Assam. Following the commencement of
market arrivals of new crop, prices started sliding downward and touched
support levels in many areas. However, JCI in association with state
agencies started MSP
operation from 3rd July, 2000 in
places where ruling prices went below or touched MSP level. They stepped up
purchases and has so far (upto Nov. 2000) procured around 8.29 lakh quintals
of raw jute. JCI’s intervention in the raw jute market has produced the
desired impact. Some basic data on the performance of the jute sector in the
recent years is shown in the Table 11.2. NATIONAL CENTRE FOR JUTE
DIVERSIFICATION (NCJD) National Centre for Jute Diversification (NCJD) was registered in
January, 1992 under the Societies Registration Act, 1860 and established in
June, 1994 under the Chairmanship of Secretary (Textiles) in order to give
focussed attention to the diversification efforts in the jute sector. NCJD is required to consolidate
R&D results of various institutes in jute and textiles and transfer these
to the entrepreneurs for commercial production. It co-ordinates 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, 2000 for a period of two years. It consists of 25 members, drawn from
various sectors like Jute Entrepreneurs, Banking, International Institutions
and the Government. The NCJD is implementing the following schemes for development of
the jute sector: I. Jute Service
Centre Scheme Jute Service Centres implement an action plan jointly decided by
NCJD and respective State Government departments. Thirteen Centres are
currently in operation covering 11 States. Thrust areas include amongst
others the tribal pockets of Orissa, Andhra Pradesh and North East. Special
plans are drawn for the North Eastern States. New areas like Latur in
Maharashtra and Jammu regions have been brought into the fold of activities. II. Raw Material Bank
Scheme Currently 21 Raw Material Banks (RMBs) are in operation and their
activities 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. The RMBs also organised workshops for
generating awareness about jute application. III. Design
Development 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. IV Market Support Scheme Most of the market support activities is done through the JSCs.
The action plan of the JSCs includes organisation of exhibitions,
buyers-sellers’ meet etc. These activities support regionally developed
products getting directly into the local market and the producers thereby are
able to assess the performance of their products. During the current year, 47
such programs are proposed. NCJD also participates in various fairs where the small units /
NGOs and other units will be represented. Some of these are the IITF
Calcutta, IITF, Dilli Hat and Jute India at Delhi. V. Technology Application
Scheme Technology application scheme has been conceived to ensure the incorporation of the necessities
of the peripheral technology management areas which will strengthen the jute
diversification programme as a whole. This Scheme aims at ensuring that the
organised sector and the large industrial units are adequately represented in
the programme and also to see that they are adequately equipped to complement
and support the decentralised sector in jute diversification. Reports on studies that were initiated in areas the areas like
Biotechnology, Energy Management, Waste Management, etc have been duly
communicated to all concerned beneficiaries to take advantage of the
findings. VI. Jute Entrepreneurs Assistance
Scheme (JEAS) Under the JEA Scheme during period April-October, 2000 6 projects
were approved for funding with assistance of a total of over Rs. 122 lakhs
under the loan scheme.
Additionally, 22 projects were cleared under grants from UNDP
involving an outflow of Rs. 3 lakhs.
Promotion of these projects, it is estimated, will enhance raw jute
consumption by over 2000 MT and generate employment for more than 700
individuals. The above schemes of NCJD have generated considerable enthusiasm
amongst small entrepreneurs, and NGOs.
NCJD is helping these entrepreneurs, women/NGOs to consolidate their
production activities and enhance their production of such diversified
products. VII. 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 initiated some measures. A few of these are highlighted below: The Centre has developed various designs of low-cost jute bags
for the consumers. Efforts have been taken 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. INTERNATIONAL JUTE
ORGANISATION The International Jute Organisation (IJO) is the
inter-governmental organisation to administer the provisions and to supervise
the International Agreement on Jute and Jute Products, 1989. The organisation
came into existence on 09.01.1984. India had been a member of IJO since its
inception. India, however, withdrew from the membership of IJO briefly for
the period 20.04.1998 to 07.01.2000 on account of differences on the future
set-up of IJO among member nations. The organisation has gone into a liquidation mode from April’2000 following the absence
of some importing countries in
renegotiation of the new International Jute Agreement slated to have taken
effect from 1st April’2000. However, efforts to negotiate a successor
agreement are continuing. JUTE MANUFACTURES DEVELOPMENT COUNCIL
(JMDC) JMDC was set up as a statutory body with effect from 1.5.1984
under the Jute Manufactures Development Council Act, 1983. The Act provides for establishment of
a Council for the development and production of jute manufactures by
increasing efficiency and productivity in the jute industry and the financing
of activities for such developments and for matters connected therewith. JMDC has been delegated with all
functions relating to export promotion in the jute sector and also to perform
other activities in the domestic market of jute sector, as are performed by a
commodity board. The activities
of JMDC are wholly financed by the Government of India out of the cess collected
on various jute manufactures. a) The major
activities undertaken by JMDC during 1999-2000 were as follows: The Council organised 17 exclusive jute exhibition-cum-sales and
exclusive jute exhibition (Jute India’2000) of jute diversified products and
organised participation in 11 product specific and general exhibitions in the
domestic market. In the
international market the council participated in one foreign fair under UNDP
funding and four foreign fairs under JMDC’s own funding. During 1999-2000, Council organised 11 workshops/seminars/BSM on
Jute for Domestic and export market promotion. b) In the year 2000-2001 till November, 2000
the Council has organised following market promotion activities : Organised 12 exclusive jute exhibition-cum-sales, 4
seminars/workshops/interactive meetings/BSM and organised participation in 4
product specific fairs. A jute delegation visited London and Brussels during 5-8
September to promote Food Grade
Jute Products (FGJP)/Yarn. The
delegation also attended the meeting of the Executive Committee of International
Cocoa Organisation in London. JMDC has organised
retail sale outlets or portions thereof as dedicated outlets for
diversified jute products. Three
showrooms at Bangalore, Chennai and Mumbai are managed, by Central Cottage
Industries Corporation. One in
Patna, by the Bihar State Export Corporation, one in Ahmedabad by Madhya
Pradesh Hasthshilpa Vikas Nigam and two showrooms in Calcutta by the Jute
Corporation of India and West Bengal Handicrafts Development Corpn,. One in
Tirumala by A.P. Handicrafts Development Corporation. The Council is working in close association with IJIRA for
development of low cost jute bags and promoting jute bags as an alternative
to plastic bags in coordination with relevant State Govt. authorities. The website of the Council “www.jute.com” has enabled the users
to have direct access to the updated statistics and information on jute and facilitated direct inquiry
to the industry/exporters by the buyers. |
