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The challenge before the jute industry is to grow mill capacity and increase the supply of raw jute in tandem. IJMA Chairman Sanjay Kajaria tells Kunal Bose that in order to achieve these goals, the industry must close ranks. Excerpts.
Q: The trouble-prone jute industry stands on the threshold of an indefinite strike. This is the time for mills to close ranks. Instead Ludlow, a major industry constituent, has resigned from the membership of the Indian Jute Mills Association (IJMA) on grounds of inept handling of the situation. Will not a complaint like this chip away the credibility of IJMA?
A: Yes, Ludlow has cited this as the reason. But, we value Ludlow’s association with us, so much so that the IJMA committee has unanimously decided not to accept the resignation.
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I’m keeping Ludlow Chairman SS Kanoria posted about how proactively IJMA is conducting dialogue at political and administrative levels, both at the Centre and in West Bengal, to ensure that mills are spared work disruption. At the same time, we have done the homework to prove, in the event of a strike, that the unions do not have a case. Ludlow will not be unaware how difficult and tricky it is to deal with 20-odd central unions, and then again, local-mill-level unions. Why should IJMA let the unions have the upper hand at this point.
Q: What also has triggered Ludlow resignation is the lackadaisical approach of IJMA to the introduction of lighter jute bags for packing foodgrains. The argument is if you make lighter but multiple-use bags, then you save on cost and also conserve fibre, which remains in short supply. Can you fault Ludlow on that?
A: You don’t have to be a rocket science pundit to know that if earlier we were making bags weighing 1,030 gm each for packing 100 kg of food grains, then a 560 gm bag, and not the 665 gm bag as now in use, should be more than good to hold 50 kg grains. But a new bag has to pass the muster of the official research institute, IJIRA.
Unfortunately, IJIRA has rejected the 560 gm bag. We will make some modifications to the lighter bag and then go back to IJIRA.
Q: Quite a few jute mills don’t have IJMA membership. But Ludlow’s withdrawal will come as a blow to IJMA’s image.
A: That’s why we are trying to keep Ludlow in our ranks. IJMA is a 125-year-old organisation and this is not the first time that we are face to face with an occasion like this. IJMA, which provides a credible platform to the industry, is also concerned with modernisation of the jute farm sector. There were occasions in the past when trade unions had to present their case on jute mandatory order dilution through IJMA under court direction.
IJMA may be an association of mill owners, but it is a holistic body. It can’t be otherwise, with raw jute having a share of 60 per cent in the industry’s production cost and labour another 25 per cent. Ludlow became a member of IJMA 11 months ago and I don’t want the honeymoon to be this brief.
Q: The general perception is that jute mills’ involvement with the farm sector is minimal unlike sugar factories. Will you not accept some responsibility for the fall in area under the crop since the beginning of this decade and stagnation in jute productivity?
A: If you see IJMA’s Vision 2015 document, you will find how much importance is given to the farm sector. It’s to be accepted that the scope for getting new land under jute is limited. So, our focus is to raise productivity from the current level of 11.70 bales of 180 kg each a hectare. First, we need involvement of ICAR and agricultural universities to develop high quality seeds. Let’s ensure for the next jute season starting July 2010 that only certified jute seeds are made available to farmers at right prices, well ahead the beginning of sowing.
You have mentioned about BT cotton’s role in making a resounding breakthrough in crop productivity here. We want Monsantos and Advantas of the world to develop transgenic variety of jute seeds. You know how time-consuming is development of any genetically modified seed. So ahead of BT jute seeds, let there be hybrid jute seeds.
Q: A section in the industry says given the right policy package, the industry’s capacity may double in five years. Is IJMA doing anything in this direction?
A: This is beyond the realm of possibility. Our Vision Document says the industry should grow at a CAGR of 5 per cent to 2.35 million tonnes by 2015. Don’t miss the point that the industry capacity growth must necessarily be in sync with progressively higher supply of raw jute. As IJMA underpins the need for making jute industry technologically contemporary, it also wants government agencies to educate farmers about better farm practices and how to do retting of jute with minimum water. The industry, on its part, accepts the responsibility to buy jute at remunerative prices.
Q: Will you say that the jute cess fund is properly utilised?
A: The industry is contributing around Rs 65 crore a year to the fund, which should ideally be used for development of the farm sector and mill modernisation. If you go by original purposes of the fund, then it should also be used for improvement of labour productivity and building an R&D database. Unfortunately, the fund is largely used for no-priority exercises like participation in global trade fairs.
