Jute Export Council Under Study
The ministry of textiles has mooted a separate body for jute exports in the lines of an export promotion council.
Syed Shahnawaz Hussain, Union minister for textiles said at a meeting organised by the Indian Jute Mills Association (IJMA), while there were dedicated export promotion councils for all other segments of textiles, there was none for jute.
Jute exports were being promoted by the Jute Manufacturers Development Council. Jute exports were worth approximately Rs 700 crore in 2002-03.
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However, Hussain said that the export promotion council would organise buyer-seller meets to facilitate jute exports and JMDC would concentrate on other activities.
Among the slew of initiatives announced by the minister today, was a scheme aimed at increasing productivity and upgradation of quality.
Hussain pointed out, there was much disparity in prices being fetched by the same grade of jute from different farmers.
To address the issue and to protect the interest of the farmers and in turn the mills owners there would be a separate scheme to improve technology. This would be achieved with aid from the government as this was imperative for the survival of the industry.
Hussain also said, the ministry was in active discussion with the Planning Commission for a Jute Technology Mission (JTM) with a corpus of Rs 565 crore.
The primary objective of JTM was to enhance jute productivity and boost the Rs 3,500 crore jute market.
JTM would also look into the income of the jute farmers, research on high yielding varieties, transfer of technology, improving productivity in manufacturing sector, diversification of jute products, in the domestic market as well as external marketing.
Meanwhile, the ministry has extended the External Market Assistance (EMA) scheme for a year, to encourage export of jute goods. Sops were also announced for new jute units.
Hussain said, the capital subsidy under jute modernisation scheme for setting up mills in areas where there was no mill had been raised to 20 per cent from the present 15 per cent.
Commenting on the progressive dilution of Jute Packaging Materials Act (JPMA), Hussain said, the Supreme Court has decided to maintain status quo on the issue, which implied that the sugar industry would have to pack 90 per cent in jute bags and foodgrains 100 per cent.