The Jute industry in India is going through turbulent times and is looking for long term solutions from the industry leaders.The jute sector in India occupies an important place in our economy as it provides direct employment to about lakhs of workers and supports the livelihood of around 4 million families.
As per the last statistics available, jute exports are to the tune of nearly 1000 crore INR. So far, the government support has remained perennial, as the Jute Sector has usually been included for special attention in its policy framework.
The jute industry has usually been on a roller-coaster ride and its growth seems uncontrolled and unregulated which often reverses the good steps taken. To shed some light on the woes of the jute manufacturers, lets begin with Bengal where in the jute mills are losing Rs 900-1000 per tonne on jute bags owing to a faulty calculation made by the Jute Commissioner's office. The mill owners have claimed that between July 2009 and August 2010, the industry has lost around Rs 42 crore.
As per the news report, the mill owners are being forced to buy low grade jute at high price and sell the manufactured jute bags to the government at low prices.
It is worth noting that 35-40 per cent of the total jute bags produced in the country is purchased by the government through different procurement agencies.The Food Ministry has so far refrained from taking any decisive stand saying that that the issue is solely under the domain of the Jute Commissioner (JC), considered to be the custodian of jute industry.
In another setback to the jute industry, the Central Board of Excise and Customs (CBEC) has turned down a proposal made by the Union Ministry of Textiles (MOT) to restrict about 450 odd sugar mills across the country from packing sugar in plastic bags replacing jute bags .
This is despite the recent decision of the Cabinet Committee on Economic Affairs (CCEA) which had ruled out any dilution in the Jute Packaging Materials Act (JPMA) of 1987 that makes it mandatory for packaging of 100 per cent of food grains and sugar produced in India in jute bags.
Understandably, the jute manufactures are in deep anguish and intend to take the legal course as their sources of demand are diminishing with each passing day.
However, all is not lost for the jute exporters and suppliers as the centre is expected to finalise the much awaited ‘National Fibre Policy’ by the end of this year. That will remove the disparity in taxation and pricing of various fibres in the country.
Industry insiders say that, the proposed policy is expected to iron out the disparities in taxation structure and pricing with a comprehensive policy on exports and will help the Indian textile industry (including the jute industry) to recover its share in the global arena.
As one of the jute bags exporter sums up the whole scenario by saying that - “a lot has been said and a lot of assurances have been given, now its the time to see what exactly are they able to deliver and how soon...”
It certainly seems like a testing time, not just for the jute manufactures but also for our policy makers.
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There have been two big news stories for the jute products manufacturers which can bring a ray of hope for the otherwise ailing jute industry.
The first one is that the Cabinet Committee on Economic Affairs (CEA) decided to reverse the Union textile ministry’s proposal for 25 per cent dilution in mandatory use of jute bags for packaging of food-grain and sugar. This is for the second year in a row that CCEA has turned down the proposal for dilution of the Jute Packaging Materials Act (JPMA). According to JPMA of 1987, it is mandatory for the government procurement agencies to pack foodgrain and sugar in jute bags.
Industry insiders think of this as a pre poll bonanza for the West Bengal. Jute Products Manufacturers hail this decision as the jute industry is labour-intensive and engages around 400,000 workers directly, while creating indirect employment for nearly 4 million farmers.
The second big story comes from Andhra Pradesh where in three jute parks under public-private participation have been sanctioned for the state. News reports further adds that an integrated jute park would come up at Sabbavaram, near Visakhapatnam on an extent of 200 acres with Rs.100-crore investment and two jute diversified product parks at Guntur and at Ibrahimpatnam in Ranga Reddy district under Jute Technology Mission.
Agencies add that the National Jute Development Board would release Rs. 7.5 crores towards creating infrastructure facilities in addition to the state government's share. It is expected that the parks would generate employment for up to 25,000 jobless youths.
Jute is the most important vegetable fibre second only to cotton; not only for cultivation, but also for various uses like in the sackings, carpets, wrapping fabrics (cotton bale) etc.
With the ever increasing concern over deforestation due to the war cry over global warming, jute is now being positioned as a viable alternative for the pulp and paper products. A noticeable trend has been the rise in demand of Jute bags in various promotional activities and campaigns at the corporate level.
As of now jute products manufacturers are breathing a sigh of relief mainly due to the increased support from the government and the gradual increase in demand of jute products worldwide. It would be interesting to see how long would the jute industry manage to flourish in the times to comes amidst tough competition from other sectors.
PS: If you are a jute products manufacturers , get your online catalogue today and make profits by tapping the business queries being generated on the web 24/7. To know more click on jute products manufacturers
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