Home > Yarns & Fibres > Story

Ministry to set up an export promotion council for jute

E-Tex Staff - Kolkata

The Union textiles ministry has decided to set up an export promotion council (EPC) on the lines of silk and apparel for jute to boost exports of jute goods from the current level of Rs 900 crore. Mr Syed Shahnawaz Hussain, the Union textiles minister disclosed this in Kolkata recently.

"I have noticed that there are a number of EPCs for many exportable goods, but not for jute, although it earns sizeable foreign exchange", Mr Hussain said at an interactive session organized by the Indian Jute Mills Association (IJMA), the apex body of jute millowners in the city. "How long can jute industry continue manufacturing only sacks for survival? It will have to increase its presence in export market and to encourage this we have decided to set up an export promotion council on the lines of other autonomous bodies like silk export promotion council and apparel export councils," he said.

He said the proposed EPC will not marginalise the Jute Manufacturers’ Development Council (JMDC), which had been tasked with the promotion of diversified jute goods. He also said that the jute sector, while meeting the increasing challenge from synthetics, has already come up with several diversified and innovative products.

Mr Hussain, who represents Kishanganj constituency in Bihar, said "As I represent a constituency, bordering Bihar and West Bengal, where jute is grown in abundance I will ensure that jute once again regains its status of ‘golden fibre’ in the true sense and not only for its name sake."

The minister suggested that the jute industry and merchant shippers engaged in export of jute goods should take the initiative for promoting an EPC designed to meet its specific requirements.

The Union textiles minister also announced a support package for the beleaguered jute industry. The package proposes a higher subsidy on capital investment of 20 per cent from the existing 15 per cent, extension of external marketing assistance (EMA) on exports of jute goods for another year with retrospective effect from April 1, 2003; encouraging production of geo-textiles with wider marketing network in both domestic and overseas markets: captive power generation plants and an industry-oriented export council. Jute textiles were already included in the EMA list along with other items on an ad-valorem basis.

The minister, however, sought to clarify that the higher capital subsidy on investments on jute machinery and modernization will only be for newly installed jute mills outside West Bengal, particularly in other cities. Earlier, the Union Government had announced concessions towards industry subsidy under the Technology Upgradation Fund Scheme.

The minister felt that production and marketing of jute textiles has great potential in both domestic and international markets. He announced that his ministry has worked out a technology upgradation scheme on jute under which Rs 500 crore would be spent during the 10th 5-year plan period to modernize machinery, increase productivity yield per hectare as well as fibre quality. He said he has already initiated dialogues with Planning Commission deputy chairman, Mr K C Pant on the issue.

Mr Hussain advised the jute millowners to set up their own captive power generating units. He assured that the government would also retain the order for 100 per cent use of jute sacks for packaging of foodgrains and 90 per cent for sugar.

Mr G M Singhvi, chairman of IJMA, said that the government should make the use of geo-jute in road building and erosion control mandatory. Mr Singhvi also said that the government should prepare a comprehensive scheme to increase the production of raw jute to 160 lakh tonnes from around 100-lakh tonnes at present.

Mr Hussain said his ministry was in talks with the PMO for making compulsory use of geotextiles in construction of national highways and also roads under Prime Minister Rojgar Yojna.