annual report 2007-08 CHAPTER VI THE JUTE AND JUTE TEXTILES INDUSTRY 71
72 ministry of textiles
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) T he Jute Textiles Industry occupies an important place in the national economy. It is one of the major industries in the eastern region, particularly in West Bengal. It supports nearly 4 million farm families, besides providing direct employment to about 2.6 lakh industrial workers and livelihood to another 1.4 lakh persons in the tertiary sector and allied activities. The production process in the Jute Industry goes through a variety of activities, which include cultivation of raw jute, processing of jute fibres, spinning, weaving, bleaching, dyeing, finishing and marketing of both, the raw jute and its finished products. The Jute Industry is labour intensive and as such its labouroutput ratio is also high in spite of various difficulties being faced by the industry. Capacity utilization of the industry is around 75 per cent. These apart, the jute industry contributes to the export earnings to the tune of nearly Rs. 1200 crores annually. There are 77 composite jute mills in India, of which 60 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 Chattisgarh. Ownership- wise division is: 6 mills are under Government of India, 1 mill (Tripura) 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 12,192, with fine spindles at 9,712 and coarse spindles at 2,480. The maximum installed capacity in jute mills, other than 100% export oriented units (on the basis of 320 working days per year), is estimated at 2.14 million tonnes per annum. In exercise of the powers conferred by sub-section (1) of Section 3 of the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, Ministry of Textiles issued Notification dated August 9, 2007, stipulating that 100% foodgrains and sugar to be compulsorily packed in jute packaging material. The Notification came into effect from the date of its publication and remained valid upto June 30, 2007. Raw Jute 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. The supply-demand position of raw jute including mesta from 2002-03 to 2007-08 is at table No. 6.1. Raw Jute. PRODUCTION OF JUTE GOODS During 2006-07 (April-March), total production of jute goods was at 1356.30 thousand M.T compared to 1582.2 thousand M.T. in the corresponding period of 2005-06. The unusual fall in production during 2006-07 over the previous year is attributable to strike in jute mills in West Bengal w.e.f. January 5, 2007, which continued upto March 8, 2007. During 2007-08 (upto Oct., 2007), production of jute goods is 1024.1 thousand M.T. as against 869.3 thousand M.T. during the corresponding period of 2006-07. Trend in production of jute goods from 2000-2001 onwards are at table 6.2. Jute products DOMESTIC OFF-TAKE OF JUTE GOODS During 2006-07 (April-March), total domestic consumption of jute goods was 74
annual report 2007-08 (A)SUPPLY 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 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 consumption 8 8 8 8 8 9 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 thousand M.T in the corresponding period of 2005-06, recording a fall of 11.8%. During 2007-08 (upto September 2007), the domestic consumption of total jute goods is 701.0 thousand M.T. as against 623.9 thousand M.T in the corresponding period of 2006-07. During 2006-07, the B. Twill bags purchased by different foodgrain procuring agencies was 11,70,975 bales ( 3,89,349 MT) against 14,58,135 bales (4,84,829 MT) in 2005-06. In 2007-08 (upto November), 9,67,890 bales (3,21,823 MT) have been purchased as against 8,79,294 bales (2,92,365 MT ) during the corresponding period of 2006-07. Trend in domestic consumption of jute goods from 2000-2001 are at table 6.3. 75
ministry of textiles 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 2005-06 249.5 996.2 1.1 178.4 1424.1 237.6 974.2 0.7 165.3 1377.8 2006-07 209.1 854.4 0.5 152.2 1216.2 2007-08 (Apr/Oct)) 2007-08 (projected) 149.3 579.2 0.5 101.5 830.5 240.7 964.7 0.3 162.2 1367.9 PRICE SITUATION OF RAW JUTE The jute season 2006-07 started with a carryover stock of 8.00 lakh bales with estimated production of about 100.00 lakh bales. The price of raw jute from the very beginning of the season was ruling above support level. Keeping in view the rising trend in raw jute prices and earning some profit in future, the Jute Corporation of India (JCI) entered into the raw jute market and purchased around 5.0 lakh bales of raw jute under Commercial Operation. With the entry of JCI in commercial operation, jute price further increased. In the beginning of December, 2006, several Central Trade Unions had served a notice to all jute mills located in West Bengal calling an indefinite strike from January 5, 2007. This notice had a dampening effect on the raw jute prices. The strike in jute mills in West Bengal began w.e.f. January 5, 2007, and continued upto March 8, 2007. Due to the strike in jute mills, the demand of raw jute had sharply fallen and around 12.0 lakh bales were less consumed. The lesser consumption of raw jute has affected the market which continued at the end of the jute season of 2006-07. In view of the fall in prices of raw jute, JCI entered into the market and purchased around 2.45 lakh quintals (1.36 lakh bales) of raw jute under MSP. In order to dispose-off this MSP stock, the entire quantity of raw jute had been linked with B.Twill allocation. The jute season of 2007-08 began with a carryover stock of 23.0 lakh bales with estimated production of 95.00 lakh bales and import of 4.0 lakh bales, making a total availability of 122.00 lakh bales. In view of the large availability of raw jute, the market sentiment remained dull. JCI has entered into some pockets and purchased around 8.0 lakh quintals (4.44 lakh bales) of raw jute under MSP. PROCUREMENT OF RAW JUTE UNDER MSP AND FIXATION OF SUPPORT PRICE Jute procurement under MSP and commercial operation undertaken by the Jute Corporation of India (JCI) during the last several years are at table 6.4. 76
annual report 2007-08 Year Table 6.4 Procurement of raw jute by JCI (Qty: In 000 Bales) 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 Govt. on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP). While formulating the agricultural price policy, CACP takes into account various factors such as cost of production, over all demand/supply situation, domestic and international prices and effect of minimum support price on general price level. CACP every year also conducts meetings of all stake holders to decide minimum support price. The MSP announced by Government of India during the last several years are at table 6.5. EXPORT PERFORMANCE AND RELATED DEVELOPMENT During 2006-2007 (April-March 07), the export, which was Rs.10,552 Million equivalent to about US$ 241 Million, was lower by 11% in Indian Rupees and by 10% in average dollar terms as compared to the same period of 2005-2006 Table 6.5 Year MSP of TD-5 grade of raw jute Ex- Assam (Rs./Quintal) %age increase 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 77
ministry of textiles (2,85,800 MT/Rs.11,862 Million/US$ 267 Million). In terms of quantity, export during 2006-2007 was to the tune of 2,42,800 M.Ton, which was also lower by 15% as compared to same period of 2005-2006. Going by the export performance the achievement of export target during 2006-07 has been to the extent of 80%. This declining trend in cumulative exports has been mainly attributable to fall in exports of major exportable items like Hessian by 29% in quantity and by 24% in value, and Diversified Jute Products (JDPs) by 18% in value terms. However, export of Yarn has shown an upward trend by 13% in quantity and 14% in value terms as compared to corresponding period of previous year. Similarly, Sacking also has shown an increasing trend by 4% in value terms during 2006-07 as compared to 2005-06. The market feedback reports reveal that during March 2007, overseas business remained dull, with fresh enquiries down to a trickle and most shipments being restricted to earlier transactions. Buyers preferred to wait for a falling market even though there has been depreciation of dollar vis-à-vis the Rupee. Infact, with closure of 55 jute mills in West Bengal due to strike in jute industry between 5 th January, 2007 and 8 th March, 2007, production and exports were adversely affected. However, to meet the business commitments, there were imports from Bangladesh but volumes were hardly sufficient, there being uncertainties in delivery schedule due to political disturbances. Thus, turnover was extremely light with restricted volumes of transaction Export performance On the basis of dispatches of jute goods for exports, based on the returns of jute mills, exports of jute goods during 2007-08 ( upto November, 2007), have been estimated at 1,42,000 M.T. valued at Rs. 7,755 million equivalent to about US$ 197 million. Government fixed exports target of jute goods for 2007-08 at US$ 381 million. Going by the estimated export during current year (April-November 2007 i.e. 8 months) the achievement works out to 878% of proportionate target of US$ 254 million. USA, Egypt, Belgium, Turkey and Syria had been the five major importing countries for Indian jute goods which accounted for about 46% of total exports of jute goods in value terms. The major exportable items of Indian jute goods are Hessian, Sacking, Yarn of traditional products, Floor coverings and Hand & shopping bags in the Diversified Jute Products (JDP) sub-sector. Recently Food Grade Jute Cloth and Bags (FGJP) and Jute Geo Textiles (Soil Saver) have emerged as the other potential exportable jute items. IMPORT OF JUTE GOODS During 2006-07, the volume of import of jute goods stood at 60.93 thousand M.T.valued at Rs.171.63 crores against 77.02 thousand MT valued at Rs.172.56 crores in 2005-06.This implies a fall of 20.8% in terms of quantity and 0.5% in value terms over 2005-06. The volume of import of raw jute during 2005-06 stood at 94.36 thousand M.T. valued at Rs.150.31 crores as against 136.22 thousand M.T. valued at Rs.189.77 crores. Thus import of raw jute both in terms of quantity and value have decreased by 30.7% and 20.8%, respectively. Import of Jute goods during 2007-08(April/Nov.) has, however, increased by 4% to 35.78 thousand M.T. as against34.56 thousand M.T. in the corresponding period of last year. Import of 78
annual report 2007-08 raw jute has also increased substantially by 98 % to 139.26 thousand M.T. as against 70.32 thousand M.T. during the last year. Trend in import of jute goods and raw jute is at table 6.6. DEVELOPMENT AND REGULATORY ORGANISATIONS IN JUTE SECTOR (a) Organisations under Ministry of Textiles Jute Manufactures Development Council (JMDC) The Jute Manufactures Development Council (JMDC) is a Statutory Body constituted under the JMDC Act, 1983, under the Chairmanship of Secretary(Textiles) on May 1, 1984, with the objective to increase efficiency and productivity in the jute industry, and the financing of activities for such development and for matters connected therewith. JMDC has been delegated all functions related to Export Promotion in the jute sector and mandated 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 through grants from the proceeds of Cess on the production on jute levied under the Jute Manufactures Cess Act,1983, by the Government. The Govt. of India, through a Gazette Notification dated June 14, 2007, reconstituted the Jute Manufactures Development Council for a period of two years w.e.f. May 21, 2007. JMDC website is www.jmdcindia.com National Centre for Jute Diversification (NCJD) The 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) to give focused 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 is reconstituted every two years. The last (April- March) Table 6.6 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value Raw Jute Jute Products 133.79 126,95 107.64 106.36 85.98 89.97 136.22 189.77 94.36 150.31 7.35 19.26 9.99 25.44 32.17 70.74 77.02 175.56 60.93 171.63 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, 2007. It consists of 25 members, drawn from various sectors like Jute Entrepreneurs, Banking and the Government. NCJD is implementing schemes for development of the Jute-diversified sector and to provide backward and forward linkages to new and budding entrepreneurs, NGOs and women s groups. Office of Jute Commissioner The office of Jute Commissioner is a subordinate office of Ministry of Textiles. It is a regulatory body to implement the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act 1987 and provisions of Jute and Jute Textiles Control Order 2000 (issued under Essential Commodities Act 1955). Jute Commissioner is the legal authority prescribed in these statutes. The Jute Commissioner attends to production, distribution for domestic consumption and exports and development of jute as well as jute products. Important functions of the Jute Commissioner office include- Implementation of the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act 1987. Issues Production Control Orders (PCO) under Jute & Jute Textiles Control Order 2000, on jute mills for supply of B.,Twill bags to Government agencies (DGS&D) and FCI. Fixation of MSP of raw jute for different areas and grades on reports of Commission on Agricultural Costs and Prices. Fixation of monthly price of B.Twill Jute bags based on Tariff Commission s Report. Review of projects undertaken by Indian Jute Industries Research Association(IJIRA) and other R&D institutions and recommending for approval by Ministry of Textiles. Supervision and coordination of Government of India schemes for modernization of jute industry, such as Jute Technology Mission, TUFS (Technology Up-gradation Fund Scheme) etc. Assisting in formulation as also revision of productivity norms for jute industry which will indicate norms of production, wastages, raw jute inputs, power requirement of jute products. To analyze trends in production, consumption, supplies, prices etc of raw jute and jute goods and to transmit reports/returns to different Government bodies, RBI, FAO Rome, International Jute Study Group (IJSG) Dhaka. To prepare reports and notes periodically on economic aspects of the Government policies, schemes relevant in jute sector including fiscal incentives, monitoring performances of implementing agencies. Collection, compilation and maintenance of statistical data of opening stocks, production, domestic consumption, exports, imports, closing stocks and prices of raw jute and jute goods and transmission of consolidated reports to Ministry of Textiles, CSO, RBI FAO, IJSG etc. Jute Commissioner office website is http://jutecomm.gov.in/ (b) Other Organisations supported by Ministry of Textiles in Jute Sector International Jute Study Group (IJSG): The International Jute Study Group (IJSG) is an intergovernmental body 80
annual report 2007-08 set up under the aegis of UNCTAD to function as the International Commodity Body (ICB) for Jute, Kenaf and other Allied Fibres. The IJSG was set-up to succeed the erstwhile International Jute Organisation (IJO), which entered into the liquidation mode in the year 2000. It formally entered into force on and from 27 April 2002 with the completion of the process of Definitive Acceptance/Acceptance by Governments of Bangladesh, India, Switzerland, and the European Community representing its 27 member countries and representing over 60% jute trade (import and export). The IJSG administers the provisions of the successor Agreement on Jute and Jute products, 2002 adopted by the United Nations. Table 6.7 Since its inception, two officers from Government of India have been elected as Secretary General of the Organisation. Shri T. Nandakumar, was elected as its first Secretary-General in 2002, and thereafter, the Council of the IJSG in its eighth meeting held on May 2-3,2007, appointed Shri Sudripta Roy, as Secretary General, IJSG for a period of two years with effect from September 6, 2007. IJSG Website is www.jute.org INCENTIVES TO JUTE SECTOR Product Group: Miscellaneous Product Code: 90 (a) Extension of Duty Entitlement Pass Book (DEPB) benefits to Jute products The Director General of Foreign Trade w.e.f July 3, 2006, revised the DEPB rates of the jute products as in table 6.7. S.No. Description DEPB Rate (%) 24 Jute Soil Saver 1.00 25 Jute Yarn / Jute Twine 1.00 26 a. Hessian Cloth b. Hessian made-up 27 a. Sacking Cloth b. Sacking made-up 3.00 3.00 4.00 4.00 Value Cap for DEPB entitlement Rs.40/Kg Rs.55/Kg Rs.30 / Kg 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 liner/lamination and with/without Zipper/Handle 2. Jute Bags with HDPE liner/ LDPEliner/ Lamination with/without Zipper/Handle 3. PVC fabricated bags ( made from PVC leather cloth backed jute and polypropelene) 3.00 Rs.175/Kg 3.00 Rs.175/Kg. 4.00 -- 4. Poly jute bags 3.00 -- 81
ministry of textiles (b) Technology Upgradation Fund Scheme (TUFS) The Scheme provides a focal point for modernization efforts through technology upgradation in the industry. The salient features of the Scheme are as follows: Under the Technology Upgradation Fund Scheme (TUFS), 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; Industrial Finance Corporation of India ((IFCI) is the Nodal Agency for Jute sector; and Other than term loans, a number of instruments like Deferred Payment Guarantee Schemes (DPG), lease finance, non-convertible debentures, hire purchase scheme operated by NSIC etc. have also been additionally covered under the scheme. IFCI has co-opted three State Finance Corporations (SFCs), one State Industrial Development Corporations (SIDC), seven commercial banks, three All India Financial Institutions (AIFIs) and Exim Bank for financing the jute industry. The Technical Advisory Committee determines the eligibility for assistance under the scheme, which consist of the Textiles Commissioner as the convenor, Jute Commissioner and technical experts from the Textile Research Institutions (TRAs), industry and academic field covering the different segments. The following category of jute machinery is eligible for assistance under TUFS. (a) Jute softening & carding, drawing, spinning and weaving (b) Spinning and weaving/knitting of jute blends (c) Jute-blended manufacturing (d) Processing of jute products garment/made-up (e) Processing of jute-blended products (f) Material handling The technology levels are benchmarked in terms of specified machinery for each sector of the textiles industry. The machinery with technology levels lower than that specified is not permitted for funding under the TUF Scheme. The progress of sanction and disbursement under the Technology Upgradation Fund Scheme, as on October 15, 2007, is at table 6.8. (c) Jute Technology Mission The Government, on June 2, 2006, approved the Jute Technology Mission (JTM). The Department of Agricultural Research & Education, Ministry of Agriculture, launched the Mini Mission I of the JTM on November 9, 2006. The Department of Agriculture & Cooperation, Ministry of Agriculture, launched the Mini- Mission II of JTM on December 21, 2006. The Mini Mission III & IV of JTM were launched by the Ministry of Textiles on February 6, 2007. The Jute Technology Mission (JTM) will be executed during the XI th Plan with an overall outlay of Rs.355.55 crores. The objectives of JTM are: To improve yield and quality of jute fibre; 82
annual report 2007-08 Applications Sanctioned Pending Rejected Closed Assistance Disbursed Table 6.8 (Rs. Crores) No. of Applications 34 Project Cost 281.75 Amt. Under TUFs 144.46 No. of Applications 0 Project Cost 0.00 Amt. Under TUFs 0.00 No. of Applications 3 Project Cost 15.95 Amt. Under TUFs 7.62 No. of Applications 30 Amt Under TUFS 128.60 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 commercialise innovative technology for diversified use of jute and allied fibres. The operationalisation of JTM through its four Mini Missions is at table 6.9. (d) Non Plan Schemes of JMDC Jute Manufactures Development Council, by virtue of the JMDC Act 1983 and Jute Manufactures Cess Act, 1983, receives collections from Cess on Jute and is mandated to undertake the following activities out of the said collections: Facilitating development work related to jute agriculture with respect to improvement of quality and increase in the yield of jute. Promotion of better marketing and sale of jute. Improvement of productivity and efficiency of the jute industry. Promoting standardization of jute manufactures. Market development. Sponsoring scientific, technological and economic research. Collection and dissemination of information to all the stakeholders. During the year 2007-08, JMDC, from its Non-plan grants has implemented 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 and technology achievements Ministry of Agriculture 7.06 Mini Mission II Mini Mission III Mini Mission IV Development/extension of raw jute and transfer of improved technology To develop efficient market linkages for raw jute To modernize, technologically upgrade, improve productivity, diversify and develop human resource for the jute industry. Ministry of Agriculture 49.90 Ministry of Textiles 38.60 Ministry of Textiles 260.00 TOTAL 355.55 (i) EMA Scheme receiving claims pertaining to the export of 2006-07, at least upto 31.12.2007, process and disburse the claims of EMA accumulated so far (budgeted at Rs.25 crores) (ii) Receiving, processing and disbursement of residual claims under JMDC Incentive Scheme for Modernisation of Jute Industry, (iii) Funding Institute of Jute Technology, on approval and extension of the MoU towards sustainable human resource development, (iv) Implementation of the Pilot Project on construction of Rural Road by using Jute Geo-Textiles under PMGSY. (v) Follow up of the Life Cycle Analysis Study on Jute, Eco-label established therein, Brandisation & Image Building of Jute by establishment of Brand, engagement of Brand Ambassador, establishment of Brand Equity Fund for Jute and Permanent Showrooms for Diversified Jute Products. (vi) During 2007-08, JMDC has taken up field survey of the JDP manufacturers and exporters operating throughout the length and breadth of the country. The resultant directory of the small entrepreneurs in the jute sector will be published. (vii) The Action Plan for 2007-08 covers different activities for promotion of the use of jute and its array of products both in domestic and export market. In this direction, JMDC organizes: Exclusive Jute Fairs in India. Participation in regional level, national level and international level expositions held in India and abroad. Organisation of Seminars, Conferences, Buyer-Seller Meets, Jute delegations and Contact Promotion Programmes in India and abroad. Conducting sustained generic publicity campaigning of jute as an eco-friendly and bio-degradable product. 84
annual report 2007-08 (e) Reservation of packaging certain commodities in Jute The Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 (JPM Act) came into operation with effect from 9th May 1987. It provides for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interests of production of raw jute and jute packaging material and of persons engaged in the production thereof and for matters connected therewith. JPM Act provides for the constitution of a Standing Advisory Committee (SAC), which would recommend the commodity or class of commodities or percentage thereof to be packed in jute material. After considering the recommendations of the SAC, the Central Government issues appropriate orders for mandatory packaging of certain commodities in jute packaging material. After considering the recommendations of the SAC and other inputs such as existing level of usage of jute material, quantity of raw jute available quantity of jute materials available, protection of interests of persons engaged in the jute industry and in the production of raw jute, the need for continued maintenance of jute industry, environmental factors etc, the government has notified 100% compulsory packing for food-grains and sugar in jute bags for the jute year 2007-08 (July-June). SCHEMES OF JUTE TECHNOLOGY MISSION MINI MISSION III 1. Development of Market Yard Under this scheme, it is proposed to construct 10 marketing yards in major jute growing districts in the Country. Approximately, the arrival of raw jute in these market yard should be 10,000 MT and above per annum. The estimated cost of these jute specific market yards is Rs.1 crore. The scheme would be providing 60% funding and APMCs would contribute balance 40% of the total cost besides providing/acquiring land for the purpose of establishment of the market yards. 2. Construction of JCI Departmental Purchase Centres In this scheme, it is proposed to construct 20 such facilities under the aegis of JCI in strategically important jute growing States where there is standing need for the same. The cost of construction is estimated at Rs.1 croroe per DPC including cost of acquisition of land. The entire cost will be borne by Government of India. 3. Construction of Retting Tanks Since retting is the most important part of jute cultivation in terms of quality fibre production, non-availability of adequate retting water poses hindrance in production of quality output. Encouraged by the successful outcome of our earlier project on construction of Community Retting Tanks, it is proposed to construct Retting Tanks to facilitate retting at least one in each jute producing districts of India in phased manner. In next five years, it is proposed to construct 50 retting tanks in staggered manner to provide retting water to the jute growers. It can also be utilized for demonstration and adoption of new retting methods like Biotechnological Retting Method by use of inoculum in order to improve the quality of jute fibre as well as reducing retting period. 90% of the cost of construction of retting tank would be sponsored under this scheme, and the 85
ministry of textiles remaining 10% would be contributed by the beneficiary. 4. Demonstration of Retting Technology and Training to Jute Growers. Latest techniques in the jute cultivation, improved retting methods will be popularized through this programme. Expertise of CRIJAF and NIRJAFT in the allied fields will be the source of knowledge bank. This scheme will help in upgrading the quality of jute produced and the changing demand of the industry can be taken care of. Under this scheme, a programme spread over five years has been formulated so that maximum number of jute growers can be brought under this training programme. Local Panchayats and State Agricultural Departments will also be involved for successful implementation. The training programme are organized so that proper dissemination of latest techniques can be made available to the jute growers at large. Follow- up measures are undertaken so that the training imparted is effectively implemented.the training programmes are being conducted through JCI DPCs in the jute growing districts of India. 5. Development of Ribboners. Already considerable work in this field has been done by CRIJF and NIRJAFT. In this scheme, further developments of the existing ones and to make them acceptable to the jute growers, concerned institutions have been initiated. The infrastructure of JCI will be utilized to distribute the developed machines to jute growers. For effective implementation of the project, extensive demonstration before the growers would be organised to popularize the Ribboner Machine and to apprise them about the benefit of use of the same. MINI MISSION IV. A Scheme for Modernisation of Organised Jute Mills: 1. Training of Workers & Supervisors. Under this scheme, training programmes for the supervisors and workers for updating their knowledge and improve their skill in both processing stages and maintenance are organised in various jute mills through the Institute of Jute Technology (IJT). Various training manuals and modules have been developed and appropriate Human Resource Development (HRD) capsules designed and implemented under the programme. A total of 300 programmes will be conduced and 15000 workers will be trained over a span of five years. HRD intervention is sought to improve the sill and update the knowledge of workers to match with the changed situation/environment. 2. Machinery Development. One of the main bottleneck for modernization of jute industry is lack of availability of new technology machines for jute fiber. Under this scheme, Research and Development efforts as well as the transfer of technology at each stage of processing is to be intensified and appropriate activities taken up. For the development of new technology and high yielding machinery, a Machinery Development Centre (CJMD) would be established through PPP model. In addition, specific machinery development projects are being funded @ 75%, to be taken up through the proposed CJMD, indigenous machinery manufacturers as well as research institutions who have the credibility and required infrastructure. 3. Productivity Improvement & TQM Facilitation. This scheme provides an integrated and cohesive approach for supporting Jute 86
annual report 2007-08 Machinery Development Programmes under Mini-Mission IV of JTM and thereby considers time-bound proposals for financial support. Following studies are planned in this scheme. Total Quality Management Energy Management Waste Management Maintenance Management Work Study & Ergonomics JMDC is conducting the studies by involving Institute(s) of repute at national level 4. Acquisition of Machinery And Plant (Subsidy Component). Under this scheme, the jute industry is being supported to adopt new technology machinery as required for production of jute based products, conventional and nonconventional like foodgrade / odourless products, technical and industrial textiles, etc. The adoption of such new machinery will enable the Indian Jute Industry to cater to the demand of global market in terms of cost and quality in the coming years. Various items of machinery and equipment, such as, Jute spreader machine, Spinning Preparatory System, Intersecting Gill, Finisher Drawing Frame, Apron/Slip Draft Flyer Spinning Frames, Ring Spinning Frames, Traditional hessian looms, High Speed Flexible of Rapier looms and Sulzer (Projectile) and Rigid Rapier (Denier)/Flexible Rapier (Sulzer) loom will be acquired and installed by identified mills/units. Support will be provided for the same @ 20% Capital Subsidy. The entrepreneurs are free to choose between this Scheme or the interest subsidy scheme under the TUFS. The maximum subsidy available in this scheme is Rs.75 lakhs in case of existing mills, which may be enhanced to Rs.1 crores for North Eastern States and Rs.1 crore for altogether new mills. B Scheme For Promotion of Jute Diversification: 1. Design & Development of Jute Diversified Products NCJD has been operating a scheme on design and product development of jute diversified products for the last few years. It has been observed that in order to make jute products more acceptable to consumers in different sectors, it is essential to incorporate innovative designs and also add newer product range for diverse application. It is contemplated that it would be relevant to explore the characteristics of basic jute products, as that will help development of new products and new application areas for jute. The subject scheme also envisages to explore the use of jute yarn in Handloom sector, where the scope of developing new design for fabric and other woven products is very high. The scheme covers areas like designing & developing jute fabric on handloom, for diversification and end uses. Similarly, research on jute composites could open up new application areas in the field of packaging like boxes, containers and also as a cushioning media. 2. Scheme for helping NGOs and Women Self-Help-Groups (WSHGs) NCJDs assistance to voluntary Organisation has been very effective. Such organizations and those comprising of small and tiny entrepreneurs could effectively contribute in mobilising jute activity, especially in rural areas. Unemployed youth and women folk could very conveniently adapt to such simple technologies that are required to 87
ministry of textiles produce jute-diversified products (JDP). The technology dissemination activity is taken up in such a manner so as to make it more effective by engaging technical personnel. In addition to the above inputs, the scheme includes a provision for matching finance for machinery assistance. Such assistance will create an environment, which will be conducive to the growth of voluntary sector. 3. Scheme for promotion of Jute Diversification The old schemes of the NCJD viz. Jute Service Centre Scheme, Jute Raw Material Bank Scheme, Design/ Product Development Scheme, Market Support Scheme, Jute Entrepreneur Assistance Scheme and the Schemes for the North East Region have been merged and renamed as the Scheme for Promotion of Jute Diversified Products. The objective of the scheme is to establish the competitive environmental advantage of jute globally as well as boost the sale of jute goods by 50% globally and increase the share of JDPs to around 20% during the JTM period. In order to achieve the objective as given in the National Jute Policy 2005 an integrated approach is envisaged and conceptualized with emphasis on following key elements: Developmental Schemes Input Related Scheme Marketing Schemes Jute Service Centre Scheme Jute Raw Material Bank Scheme Market Promotion Schemes And Campaigns For Jute Diversified Products 4. Scheme for Commercialisation of Technology. Under this scheme, NCJD would take up promotion of commercialization of technologies by interacting with the different State s Department and the DICs, holding of different Technological Conferences around the country, counseling and interactive programme for participation with different stakeholders, holding products specific workshops in potential areas, technology experimentation and machinery and process development. 5. Scheme for Setting up of Jute Parks for the diversified sector. This scheme aims at providing entrepreneurs with support facilities similar to those available in Export Processing Zones. The aim of the Scheme is to attract entrepreneurs / units investing in new small jute mills / spinning units / weaving units with a view to generate employment / upgrade technology to optimize exports based on value addition. The scheme would be executed through PPP mode on the lines of SITP scheme of Ministry of textiles. The subsidy available under this scheme for establishment of Jute park is 40%, subject to a maximum of Rs 7.5 Crored for NE states and Rs. 5 Crores for other states. C. Programmes for North East Region 10 % of the Jute Technology Mission budget has been reserved for executing the JTM schemes in the North East Region covering Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura. 88