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2019-07-13

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Indian Economy
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Ministry of Textiles

Crisis in Jute Industry

Posted On: 12 JUL 2019 4:12PM by PIB Delhi

There is no report of crisis in jute industry including closure of jute mills, loss of jobs, intense competition and cheap imports from Bangladesh. In-fact, during the last two years 10 jute twine mills have re-opened in Andhra Pradesh benefitting 20,000 workmen directly and indirectly. With a view to protect domestic jute industry, anti- dumping duty on import of jute goods from Bangladesh and Nepal has been imposed w.e.f. 5th January, 2017. The details of jute/jute products produced and imported/exported during the last three years is at Annexure-A.

 

Government of India is implementing various schemes for welfare of jute workers, improving productivity and quality of jute and overall development of jute industry in jute growing states. The details of various schemes implemented for upliftment of jute sector are at Annexure-B.

 

National Jute Board (NJB) is implementing the Incentive scheme for Acquisition of Plants and Machinery (ISAPM) for modernization in Jute mills & JDP units. During 2014-15 to 2018-19, NJB has released capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units.

 

Year

2014-15  

2015-16

2016-17  

2017-18  

2018-19*

Assistance/Subsidy

(Rs. In lakhs)

362.18

355.57

1739.21

1427.23

1087.00

No. of Mills / unit

18

22

39

52

27

 

Details of jute mills those who participated under this scheme and availed assistance are given at Annexure C.

Annexure-A

 

Production of Jute Goods

Qty: ‘000 M. Tons

 

Hessian

Sacking

Carpet Backing Cloth

Yarn

Others

Total

2016-17

178.6

871.6

3.0

93.3

45.8

1142.3

2017-18

173.3

902.7

1.9

51.7

48.5

1178.1

2018-19

141.0

846.5

0.5

45.2

47.1

1080.3

­Source: Indian Jute Mills Association

 

 

Total Exports of Jute goods

Qty: 000’ M. Tons

Value: Rs. / Crore

Year

Hessian

Sacking

Yarn

Others

JDPs

Total

 

Qty.

Value

Qty.

Value

Qty.

Value

Qty.

Value

Value

Qty.

Value

2016 - 17

78.6

930.18

46.6

411.80

9.2

72.76

4.1

68.50

590.95

140.7

2074.20

2017 – 18

86.8

917.24

44.8

407.19

16.9

130.19

4.2

72.43

631.49

155.3

2158.56

2018 – 19

64.1

802.69

37.0

432.91

13.6

109.42

7.0

112.75

815.50

121.7

2273.27

Source: DGCI&S, Kolkata

 

 

 

 

Total Imports of Jute goods (from Bangladesh)

Qty: 000’ M. Tons

Value: Rs. / Crore

Year

Hessian

Sacking

Yarn

Others

JDPs

Total

 

Qty.

Value

Qty.

Value

Qty.

Value

Qty.

Value

Value

Qty.

Value

2016 - 17

5.9

57.56

43.8

307.43

79.1

502.43

9.7

54.17

10.02

140.2

931.60

2017 – 18

11.9

122.37

45.4

413.73

50.0

310.94

7.5

23.82

9.43

115.4

880.28

2018 – 19

18.1

184.40

54.1

432.66

49.2

292.13

5.8

30.39

12.34

108.3

951.92

Source: DGCI&S, Kolkata

 

 

 

Exports of jute goods to Top 20 Countries

 

Value: Rs. / Crore

 

2016-17

2017-18

2018-19

Sl.

Country

Value

%

Country

Value

%

Country

Value

%

1

U S A

415.31

20

U S A

454.07

21

U S A

492.73

22

2

GHANA

168.62

8

GHANA

183.87

9

GHANA

258.38

11

3

U K

155.92

8

U K

141.81

7

U K

158.82

7

4

GERMANY

99.81

5

COTE D’ IVOIRE

107.53

5

NETHERLAND

114.62

5

5

NETHERLAND

98.37

5

GERMANY

99.75

5

AUSTRALIA

98.70

4

6

AUSTRALIA

82.40

4

NEPAL

92.59

4

GERMANY

97.19

4

7

SAUDI ARAB

71.74

3

NETHERLAND

82.63

4

COTE D' IVOIRE

81.15

4

8

COTE D' IVOIRE

68.05

3

SAUDI ARAB

78.49

4

SPAIN

76.63

3

9

SUDAN

56.18

3

AUSTRALIA

48.37

2

INDONESIA

52.82

2

10

U ARAB EMTS

51.10

2

U ARAB EMTS

47.17

2

NEW ZEALAND

52.69

2

11

CANADA

42.95

2

TURKEY

42.14

2

SAUDI ARAB

52.13

2

12

ITALY

42.43

2

INDONESIA

39.57

2

FRANCE

47.59

2

13

EGYPT A RP

39.23

2

CANADA

38.63

2

ITALY

39.99

2

14

SPAIN

34.72

2

BELGIUM

37.46

2

U ARAB EMTS

39.67

2

15

NEW ZEALAND

33.38

2

ITALY

37.38

2

BELGIUM

36.93

2

16

BELGIUM

32.94

2

SPAIN

36.70

2

JAPAN

34.06

1

17

TANZANIA REP

32.61

2

EGYPT A RP

35.90

2

CANADA

33.15

1

18

TURKEY

32.51

2

TANZANIA REP

31.81

1

SUDAN

32.70

1

19

JAPAN

28.51

1

NEW ZEALAND

31.46

1

TANZANIA REP

32.70

1

20

FRANCE

27.45

1

FRANCE

30.68

1

PERU

19.82

1

 

Total of 20 countries

1614.23

79

Total of 20 countries

1698.01

80

Total of 20 countries

1852.47

79

 

Total of All jute goods

2074.20

 

Total of All jute goods

2158.56

 

Total of All jute goods

2273.27

 

Source: DGCI&S, Kolkata

Annexure-B

Steps/Schemes for welfare of jute workers, development of jute industry, resolving problems of jute producers and increasing productivity and export of jute:

Mandatory Packaging in Jute Materials

Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, Government specifies the commodities and the extent to which they are mandatorily required to be packed in Jute Packaging Materials. At present, a minimum of 100% of food grains and a minimum of 20% of sugar are to be compulsorily packed in jute sacking.

 

MSP operation in raw jute

Whenever the market price of raw jute falls below a certain level, the Jute Corporation of India (JCI) procures raw jute at Minimum Support Price (MSP), fixed on the basis of recommendation of the commission for Agricultural Cost and Prices (CACP) from jute growers to safeguard their interest.

Workers’ Welfare Scheme:

Swachhatta Abhiyan – Sulabh Sauchalaya:

NJB provides assistance to the jute mills for improvement of sanitation, health facilities and working conditions of jute mill workers. The rate of assistance is @90% of actual expenses subject to maximum of Rs. 60.00 lakh (per mill / annum). Under this scheme, 1365 Toilet units have been constructed in 46 Jute Mills from 2014-15 to 2018-19.

Scholarship Scheme for the girl children of the workers of jute mills, JDP-MSMEs

NJB provides Scholarship / Incentive support to the girl children of the workers of Jute Mills / JDP – MSME units on passing out Secondary and Higher Secondary examinations. Scholarship / Incentive of Rs. 1133.05 lakh have been given to 17,722 girl children of Jute Mills / JDP MSME workers for being successful in Secondary and Higher secondary examinations from 2014-15 to 2018-19.

 

  JUTE –ICARE (Jute: Improved Cultivation and Advanced Retting Exercise)

National Jute Board (NJB) in association with Jute Corporation of India Ltd (JCI) and Central Research Institute for Jute and Allied Fibres (CRIJAF), Ministry of Agriculture is implementing an scheme for welfare of Jute farmers namely Jute –ICARE (Improved Cultivation and Advanced Retting Exercise) for the last four years in a phased manner covering 69 blocks under jute growing states till 2018-19.  Through this scheme, the farmers have been encouraged to grow jute by using certified seeds, adopting scientific technique in jute cultivation and retting to produce quality jute and increase productivity and to reduce the cost of jute production for the jute farmers.

 

Incentive Scheme for Acquisition of Plant & Machinery

Keeping in mind the need to modernise the jute mills by increasing their productivity and to replace the old machines by new and technologically advanced machines; National Jute Board (NJB) has been implementing schemes for modernization of jute industry. The scheme has been instrumental in bringing new investment to the industry. The ISAPM scheme has been launched in 2013 with an incentive @20% of the cost of machineries to Jute mills and 30% to the MSME –JDP units. During 2014-15 to 2018-19, capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units has been released.

 

 Market Promotion Support

Market Promotion support is provided to the jute artisans, entrepreneurs, weavers, NGOs, Women Self Help Groups (WSHGs) for selling, marketing and promotion of their products in India and abroad.  The fairs organized by NJB are means of livelihood to these groups of people. Some of the prominent events among others were – IITF, Delhi, Surajkund Mela, Tex Trends, Delhi, Taj Mahotsav, Lucknow Mahotsav, Shilpgram Udaipur, Giftex, Mumbai, Indian Handicrafts and gift fair, Greater Noida etc where National Jute Board organise and facilitate participation of jute units for promotion of jute products. The Market Promotion Support beneficiaries are JDP Units, Jute Mills, WSHGs etc..  The Market promotion fairs/exhibitions are organised and participated in throughout the country. NJB also provides export promotion supports to the jute exporters and facilitate participation in International fairs Business delegation, Buyer Seller Meet (BSM) for boosting exports.

  Design Development Scheme - NJB Jute Design Cell at NID

A Jute Design Cell for development of Jute Shopping Bags and Lifestyle Accessories has been set up at the Innovative Centre for Natural Fibres (ICNF) of National Institute of Design (NID), Ahmedabad.

 Jute Integrated Development Scheme (JIDS)

JID Scheme aims at setting up local units and agencies at distant locations around the country through collaboration with bonafide bodies to carry out various activities. JID agencies act as a facilitator for providing Basic, Advance and Design Development training programmes and rendering the backward and forward linkages to the existing and potential entrepreneurs at grass-root levels mainly on technology application and design /product development and disseminations.

 Jute Raw Material Bank (JRMB) Scheme

The scheme has been designed to make jute raw material available to the small and tiny artisans / entrepreneurs locally at mill gate price, suiting to the present requirement and sustainability of the decentralized JDP sector in the country.

 

Export Market Development Assistance Scheme

Export Market Development Assistance (EMDA) Scheme facilitates registered manufacturers and exporters of jute products to participate in international fairs and business delegation abroad for export promotion of lifestyle and other JDPs and boost exports. During 2014-15 to 2018-19, an amount of Rs. 17.21 crores has been disbursed to registered jute exporters for participation in international fairs under the scheme.

 Retail Outlet of Jute Diversified Products and Bulk Supply Scheme

Retail Outlet scheme supports supply chain and bulk supply of JDPs by the jute entrepreneurs for selective and mass consumption. During 2014-15 to 2018-19, an amount of Rs. 347.90 lakh has been provided to 80 beneficiaries/entrepreneurs under this scheme.

 

 

Annexure-C

 

State/Mill-wise disbursement of Incentive under ISAPM Scheme

Sl. No.

Name of the Jute Mill

Incentive Amount released

Total

(Rs.)

2016-17

(Rs.)

2017-18

(Rs.)

2018-19

(Rs.)

West Bengal

1

Hooghly Infrastructure Pvt. Ltd.
(Hukumchand Jute Mill)

        6,139,800

           2,029,000

          153,000

           8,321,800

2

Dalhousie Jute Company

           880,000

           7,628,666

       3,258,000

         11,766,666

3

Kanknarrah Co. Ltd.

           826,952

           6,477,827

 

           7,304,779

4

Alliance Mills (Lessees) Ltd.

        6,687,000

              944,000

       4,567,000

         12,198,000

5

Aditya Translink (P) Ltd.
(Samnuggur North)

        1,444,000

              236,000

 

           1,680,000

6

Jagatdal Jute & Industries Ltd.

        4,974,385

 

       5,107,000

         10,081,385

7

RDB Textiles Limited
(Victoria Jute Mill)

        1,165,200

           1,665,000

       6,249,400

           9,079,600

8

Vijai Shree Ltd.
(Fort William Jute)

           890,000

           2,985,000

       2,346,000

           6,221,000

9

Ashoka Exports

           270,520

              386,400

          697,435

           1,354,355

10

Ludlow Jute & Specialities Ltd.

        2,030,920

           2,576,602

 

           4,607,522

11

Cheviot Company Ltd.

      13,761,506

 

          211,500

         13,973,006

12

The Angus Company Ltd.

           697,000

              225,600

 

              922,600

13

The Naihati Jute Mills Co. Ltd.

        2,830,400

         14,988,000

 

         17,818,400

14

Caledonian Jute & Industries Ltd.

        2,771,000

           2,928,600

       2,359,700

           8,059,300

15

Bowreah Jute Mill Private Ltd.

      16,704,400

           2,104,800

 

         18,809,200

16

Jankalyan Vinimay Pvt. Ltd.
(Megna Jute Mills)

           807,000

           1,780,000

 

           2,587,000

17

Maheswari Jute Spinners Pvt. Ltd.

        4,898,000

           1,609,600

 

           6,507,600

18

The Empire Jute Company Ltd.

           832,000

 

 

              832,000

19

Reliance Jute Mills (Int.) Ltd.

        4,447,400

           5,284,993

       4,986,000

         14,718,393

20

Gloster Limited

      14,898,096

           4,082,800

 

         18,980,896

21

Kamarhatty Company Ltd.

        4,379,000

 

 

           4,379,000

22

Premchand Jute & Industries  Pvt. Ltd.

        8,184,171

 

 

           8,184,171

23

Kamakshi Jute Industries Ltd.

        3,973,444

 

 

           3,973,444

24

Birla Corporoation

 

         25,000,000

 

         25,000,000

25

Sree Durga Fibre Products

 

              820,000

          820,000

           1,640,000

26

Uma Spinners Pvt. Ltd.

 

           1,020,000

 

           1,020,000

27

Agarpara Jute Mills Ltd.

 

           5,856,187

 

           5,856,187

28

Richie Bags & Fashion Pvt. Ltd.

 

                92,824

 

                92,824

29

Trand Vyappar Ltd.

 

           1,115,000

          110,000

           1,225,000

30

G.D.Cement Pvt. Ltd.

 

              360,000

 

              360,000

31

OSB Overseas Pvt. Ltd.

 

              146,700

 

              146,700

32

CMTP Exports Pvt. Ltd.

 

              400,500

 

              400,500

33

Kariwala Industries Ltd.

 

           1,930,324

 

           1,930,324

34

The Baranagore Jute Factory Plc.

 

           4,408,200

 

           4,408,200

35

Ganges Jute Pvt. Ltd.

 

         10,022,724

 

         10,022,724

36

ECO Jute Pvt. Ltd.

 

 

       1,545,400

           1,545,400

37

Tepcon Int. (I) Ltd.

 

 

       1,686,000

           1,686,000

38

Goyeal Merchants Pvt. Ltd.

 

 

       1,388,000

           1,388,000

39

The Hooghly Mills Co. Ltd.

 

 

            27,000

                27,000

40

Budge Budge Co. Ltd.

 

 

       9,887,200

           9,887,200

41

Ashis Bags & Fashions Pvt. Ltd.

 

 

          571,200

             571,200

42

Earth Bags Exports Pvt. Ltd.

 

 

       2,464,422

           2,464,422

43

Auckland Int. Ltd.

 

 

       1,666,800

           1,666,800

44

Mahadeo Jute & Industries Ltd.

 

 

          352,000

              352,000

45

Patra Jute Mill Pvt. Ltd.

 

 

          410,000

              410,000

 

Total :       (A)

    104,492,194

       109,105,347

     50,863,057

       264,460,598

 

 

 

 

 

 

Andhra Pradesh

1

Andhra Pradesh Fibres Limited

           178,000

 

 

              178,000

2

Sri Sitarama Lakshmi Jute Mills (P) Ltd.

        1,328,258

 

 

           1,328,258

3

Rajam Poly Packs Ltd.

           360,000

 

 

              360,000

 

Total :     (B)

        1,866,258

 

 

           1,866,258

 

 

 

 

 

 

Assam

1

Prakash Jute Industries Pvt. Ltd.

 

 

       2,230,000

           2,230,000

 

Total : (C)

 

 

       2,230,000

           2,230,000

 

Grand Total : (A) + (B) + ( C)

 

 

 

       268,556,856

 

 

This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in a written reply in the Lok Sabha today.

 

***

MM/ SB

 



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