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Restoration of jute base

The new textile minister has evinced keen interest in rejuvenating the jute sector which has so far been not successful in drawing the attention of the policy makers. This is despite the fact that the sector holds tremendous potential in the changing trade order. As part of the jute modernisation scheme, the ministry has decided to increase the capital subsidy for new jute manufacturing units to 20 per cent from 15 per cent. Besides, the External Marketing Assistance (EMA) given to the jute exporters is also being extended for one more year so that more areas could be explored in the overseas market. In order to provide thrust on the export front, like other sectors, a export promotion council is also being contemplated for this sector also. Such measures when implemented, will definitely go a long way in boosting the jute exports from the country. Meanwhile, the ministry is also pressing the Planning Commission to clear the proposed Jute Technology Mission in order to infuse efficiency into the production base.

In fact, it is high time that a well-planned strategy is chalked out to bail the domestic jute industry out of its current state. So far no concerted effort has been made to make this industry competitive. Without being any more indulged in allegations and counter allegations, both the industry and the policy makers will have to sit together and formulate an action plan. In the past, we have seen as to how the industry and the government have worked in isolation. The recent move to dilute the Jute Packaging Mandatory Act (JPMA) is another such action on the part of the policy makers. There is no doubt that the industry can no more continue to function in a protective environment. But at the same time, there is need to prepare the industry for facing these challenges effectively. In fact, despite knowing all these developments on the trade side, both industry and the authorities have not played a responsible role all these years. This is the reason that today the industry is on the verge of collapse. Over 40 lakh farmers and more than 2.5 lakh workers are directly involved in the industry, one of the largest employers in the country. The industry has huge potential to emerge as a major foreign exchange earner for the country, particularly at a time when the global demand is shifting towards natural fibres. The fibre has got a distinct advantage over synthetic alternatives in terms of its environment friendly image. There is need to diversify the usage of jute fibre. There should be proper efforts to develop new technologies, processes and value-added products in the non-textile field by developing jute-based substitutes. The only way the industry can survive is by imparting a perceptible export orientation to its products and developing new products and applications. The moot point is that the industry will have to move out from sheer commodity production to value-added speciality production. Towards this end, there is need for increased focus on research and development. As part of strategy, product development and market development should go on simultaneously.