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Industry in a spot over Bangladeshi jute products
KOLKATA, December 24, 2009: The Indian jute manufacturers are facing double trouble. On one hand
subsidized Bangladeshi jute products are flooding the domestic market, and on the other they are being deprived of the raw jute contracted for buying from Bangladesh.
So the jute industry has made a strong plea to ban duty-free imports of Bangladeshi jute goods or examine if an anti-dumping duty can be imposed on such subsidized goods. The authorities may also consider withdrawing duty concession given to Bangladeshi exporters.In this context, it may be mentioned that the
Union government took a number of promotional measures to encourage open trade between Bangladesh and India in January last year. As jute is an important export item for the neighbouring country, the Centre had withdrawn duty on import of Bangladeshi raw jute and jute goods. But the measures have adversely affected the domestic jute industry during the past 12 months.
The country is being constantly flooded with duty-free imports of jute goods, according to Indian jute
industry sources. Meanwhile, Bangladesh has recently taken drastic measures — these include special allocation to restart state-owned mills, capacity expansion in existing operational mills and 10% cash subsidy on exports —to boost the ailing industry.
As a result, imports of subsidized jute products from Bangladesh has further increased. The imports
mostly comprise jute bags, which are largely used for packing food grain and sugar. But according to the Jute Packaging Materials Act, 1987 (JPMA), Indian jute bags should be strictly used for such packaging.
But the current situation is a complete violation of the jute reservation order. Also, Bangladesh has recently banned exports of all varieties of raw jute. As a result, all outstanding contracts have been cancelled by Bangladeshi jute suppliers. It has particularly helped those who did not want to supply against their
outstanding contracts as the prices of raw jute have increased. Source: The Economic Times
Setting up jute park at Maranga, Purnia
PATNA, December 21, 2009: Jute cultivation in the four districts of Purnia division -
Purnia, Katihar, Kishanganj and Araria - is likely to get a new a jute park in Maranga about 10 km south of Purnia town, by
Jute Corporation of India (JCI). It is learnt that the state government has finally allotted 44.5 acres of land for the establishment of jute park at Maranga. The procedure for acquisition and transfer of land was delayed, because the JCI was to make the constructions.
Yet, the initiative with regard to land acquisition and transfer was made by Bihar Industrial Area Development Authority (BIADA) with some seriousness, even as JCI had been prodding the establishment for the last two years.
The Centre meanwhile, has already increased the minimum support price
(MSP) for jute. While earlier it was Rs 1,235 per tonne, the present MSP for jute has been fixed at Rs 1,375 per
tonne.
Bihar is the second largest producer of jute after West Bengal. The four districts of the Purnia disvision constitute the core area, even as it is also cultivated in parts of Kosi
division. The significant aspect of jute cultivation in the state is that both its acreage and produce have been increasing. During the 2006-07 season, the total jute production was 1,253 tonne, but remained steady around that at 1,251 tonne during the next season, and then increased to 1,402 tonne during 2008-09. Source: The Times of India
Minimum support price of Jute
LOK SABHA, November 19, 2009: With a view to increase production of Jute, the
Government has launched the Jute Technology Mission (JTM) in major jute growing States in February 2007 for a holistic growth and development of Jute and Diversified Jute Products at an estimated cost of
Rs. 355.55 crore. The Mission is to be implemented by 2012. The Mission comprises four Mini-Missions of which
Mini- Missions-I and II are being implemented by the Ministry of Agriculture and Cooperation and
Mini- Missions- III & IV are being implemented by the Ministry of Textiles. In addition, Government provides
price security to farmers through Minimum Support Price (MSP) operations. This was stated by the Minister of State of Textiles, Smt . Panabaaka Lakshmi in the Lok Sabha today, in a written reply to a question by Shri Prasanta Kumar Majumdar, Shri Narahari Mahato, Shri Manohar Tirkey, and Shri Nripendra Nath
Roy.The Minister further informed the House that the Government fixes the Minimum Support Price (MSP) of various grades of jute based on the recommendations of the Commission for Agricultural Costs and Price
(CACP). Based on such recommendations, the Government has already increased the MSP for the current jute year (2009-10) by Rs. 125 over the last year, and declared an MSP of Rs. 1,375 for TD-5 grade jute this year.
Jute made products slowly gaining entry into UAE local market
UAE, October 28, 2009: Suppliers of earth friendly bags received a big boost from the UAE Ministry of
Environment and Water with its recent announcement banning plastic bags
completely by 2013. According to Adel Maniar, Managing Director of Mak Creations, sole distributor
of “Earthbags” in the Middle East and North Africa, the government’s latest
declaration protecting the environment has given them the enthusiasm to educate the public about the use of jute bags.
“Our goal is to help the environment by encouraging more and more people
worldwide to use our earth friendly bags. Our “Earthbags” made from jute is
becoming popular among UAE companies led by Emirates Airlines which uses it for
its First Class amenities bags,” Maniar explained. “Jute bags are an ideal form of marketing tool due to their customizable, color
variability, and primarily environment nurturing characteristics,” Maniar added.
Govt to formulate a national fibre policy
KOLKATA, October 8, 2009: Union textiles minister Dayanidhi Maran on Wednesday said
his ministry had constituted a working group to formulate a national fibre policy with a sub-group on the jute sector. His ministry had also sent a proposal to the Cabinet to hike in the minimum support price
(MSP) for jute from Rs 1,375 to Rs 1,675 per quintal. “I have urged all stakeholders to consider every aspect of the jute
economy and come up with suggestions for a long-term ‘holistic policy,’ he said. The fibre policy is slated to be in place by end-2009.
On the proposal to hike MSP for jute, he said: “I have asked Jute Corporation of India to ensure it meets its objective of ensuring proper remunerative prices to farmers by undertaking MSP operations to promote and protect farmer interests.”
The market yards developed under the Mini-Mission III would help reduce
transaction costs in marketing raw jute by farmers to mills. Ten market yards with modern facilities are being developed.
“Two such market yards at Chapadanga in West Bengal and Kharupetia in Assam have already been commissioned under UPA’s 100 days
programme. We propose to set up two more market yards in Bethuaduari and Karimpur in Nadia district of West Bengal in the current
financial year. We also propose to set up three departmental purchase centres.
Demand of jute sacks by foodgrain procurement agencies, which used to be around 15 lakh bales about 2 years ago, has now risen to 24-25 lakh bales per
year,” Mr Maran said. On the proposal to hike MSP for jute, he said: “I have asked Jute Corporation of India to ensure it meets its objective of ensuring proper remunerative prices to farmers by undertaking MSP operations to promote and protect farmer interests.”
He added that the jute industry has to upgrade technology in order to churn out high quality products at competitive rates. He said the Centre had sanctioned seven jute parks, but they had not
taken off owing to problems in transfer of land from promoter to special purpose vehicles. Mr Maran urged the West Bengal government to hasten the process to help the sanctoned jute parks to see the light of day
Source. - The Economic Times
Floor coverings’ manufacturers
New Delhi September 14, 2009: Manufacturers of floor coverings got excise relief last week when the SC dismissed the appeal of the Commissioner of Central Excise against a decision of the tribunal. In the case, Commissioner vs M/s UNI Products Ltd, the revenue authorities demanded 30 per cent in excise duty on the floor coverings. The manufacturers argued they were making non-woven coverings where the basic
fabric is jute. The authorities maintained the exposed surface was made of synthetic textile material and hence the goods were not non-woven jute floor coverings. The tribunal accepted the manufacturers’ view,
which was upheld by the SC. - Business Standard
Need for development of hybrid jute seeds
Barasat (WB), August 22, 2009 (PTI) A top official of Indian Council of Agricultural
Research (ICAR) today urged scientists to develop hybrid jute seed as a seed
crisis was looming in Andhra Pradesh because of drought. "Jute seed production in Andhra Pradesh has been badly hit by drought.
Agricultural scientists should come forward to develop hybrid seed," Deputy Director General of ICAR, Swapan Kumar Dutta told a gathering of farmers on
Farmers' Day in Barrackpore.
He urged farmers here to produce jute seed to meet the need for next cultivation
season rather than depending on some other state.Andhra Pradesh supplies the bulk of seeds to jute producing states like West
Bengal, Bihar, Assam and Orissa. More than 150 jute farmers from Hooghly, Malda, Nadia,
Murshidabad and North 24-Parganas district took part in the workshop. Five of them were awarded for
good jute cultivation.
Jute packaging law change would affect 40 lakh farmers
Patna August 17, 2009 (PTI): Bihar Deputy Chief Minister Sushil Kumar Modi today claimed that the
Centre's move to amend the jute packaging law would have an adverse impact on 40 lakh farmers of
eastern states, including Bihar. Modi said the existing Jute Packaging Materials Act, 1987 which
stipulated 100 per cent use of jute bags for packaging of sugar and foodgrains, was now being amended to help the plastic industry.
"Union Textile ministry under the pressure of plastic industrialists of West (Western India) is toying with the idea of amending the existing law to benefit them which would ultimately result in losses to the jute industry in north eastern states, particularly Bihar," Modi said. Once the law was amended, the percentage of packaging of foodgrains and sugar in jute bags would go down from 100 per cent to 75 per cent and as a result, the rest 25 per cent would be packaged in plastic bags, Modi said.
Modi, who also holds the finance portfolio, urged the Centre not to take a decision in haste as it would affect 40 lakh jute farmers, 24 lakh industrial workers associated with the jute industry and 5 lakh traders.
Modi also said the Centre's move would have an adverse impact on the Bihar government's plan to set up a 'Jute Park' under public-private partnership mode at an estimated cost of Rs 150 crore at Maranga in
Purnia district. The Bihar Industrial Area Development Authority (BIADA) had earmarked 44.5 acres of land for the multi-purpose jute park, he added.
Jute sector seeks Sonia's help for revival scheme
KOLKATA, August 7, 2009: The proposed dilution of Jute Packaging Materials (Compulsory Use for
Packing of Commodities) Act, 1987 (JPMA) is expected to be announced soon, it is learnt. As it is known, the high-power Standing Advisory Committee (SAC) at the Union secretary level has recommended 25% dilution of jute reservation norms under JPMA and the ministry of textiles forwarded the proposal to the Cabinet Committee for Economic Affairs
(CCEA) with its note in favour of SAC’s recommendation and CCEA has since approved it.
In other words, the dilution has become a certainty now and is going to be made effective retrospectively by an official gazette notification issued by the ministry if nothing miracle happens. The existing 100% jute reservation norms for both foodgrain and sugar expired on June 30, 2009. The Indian jute industry, it is learnt, is making a last-ditch effort to reverse the dilution by making an appeal to Congress
president Sonia Gandhi. Through a recent communication to Ms Gandhi, the industry tried to draw her attention to the fact that the dilution means not only withdrawal of protection given to this
environment-friendly, agro-based product manufactured by local jute mills but also unshielded the interest of millions of poor farmers and mill workers in the country. Source: The Economic Times
Jute norms eased
Kolkata, June 26, 2009: The Union food ministry today decided to dilute the mandatory jute packing order by as much as 50 per cent for the procurement of kharif crops.It also allowed the import of jute bags to meet the emergency packing needs of food grains. Sources said the ministry felt the industry was not in a position to meet the higher demand for bags.
At an emergency meeting of the food ministry, it was estimated that the demand for bags would be
around 14 lakh bales — 40 per cent higher than last year’s 10 lakh bales. On top of it, the ministry estimated that the supply of the bags would have
to be made available to the procurement agencies by September against November in normal circumstances. Two city-based industry representatives, who attended the meeting, said the food ministry had asked State Trading Corporation of India Limited to explore the possibility of the
import of jute bags. source: The Telegraph
Govt plans to lease out three units of National Jute Corp
June 17, 2009: In the first such move in India’s chequered public sector history, the
government is considering leasing out three production units of National Jute Manufacturers Corporation Ltd (NJMC) to private companies. NJMC has been sick
since 1994 and had a negative net worth of over Rs 6,250 crore by 2007-08. NJMC has six jute mills in West Bengal and Bihar. The units that are proposed to
be leased out are Kinnison and Khardah in West Bengal and RBHM in Bihar. The remaining three factories-National, Alexandra, Union in West Bengal-are to be
closed, according to the proposal of the textiles ministry, which administers operations of the company.
“Reviving the sick NJMC is in our priority list. We have proposed to lease out
three of its units, while the other three are to be closed. We will take the proposal to the Cabinet at the first instance,” textiles secretary Rita Menon
said. The company also has a sick subsidiary in Kolkata, Birds Jute & Exports
Ltd, but its fate is not yet clear. The entire proceeds from the lease rent and sales of the units will be used to
offset the financial assistance given by the government to the company, another
senior official in the ministry said. The units that are proposed to be closed
have land assets worth Rs 310 crore, he said. The government has given Rs 1,210
crore to the company, including Rs 675 crore to settle the VRS claims, Rs 275
crore to offload the dues and liabilities and the balance for wages and salaries.
NJMC, set up in 1980, is under the supervision of Board for Industrial and
Financial Reconstruction (BIFR) since 1994. The BIFR has recommended winding up
of the company in the same year, but the case went into litigation and as per
the latest information, the Appellate Authority for Industrial and Financial
Reconstruction has put a stay on the BIFR order. The company stopped production in 2004-05 due to non-supply of power after it
failed to pay the pending bills. At that time, it had accumulated losses of
around Rs 4,000 crore. However, in 2008-09 it resumed production but is manufacturing a small quantity of sacking only.
Under the revival proposal from the Board for Reconstruction of Public Sector
Enterprises (BRPSE), the government had offered voluntary retirement scheme to
the employees of the company, a total of 16,000 class IV employees and workers, Source: The Financial Express
Jute goods export down over 45 pc in March 2009
New Delhi, June 5, 2009: India's jute goods export declined by over 45 per cent in March 2009 to 15
million dollar as compared to 28 million dollar in the same period last year owing to poor
off take in major markets of the US and Europe. During 2008-09, the jute product shipments fell 9.5 per cent to 296 million dollar from 327 million dollar in the previous fiscal, according to the official data.
The major jute exportable items from India are Hessain, floor coverings and shopping bags. Industry experts feel that besides less orders from the US and European
markets, hit by the global economic crisis, the sector is also facing tough competition from its neighbour -- Bangladesh -- which enjoys an
advantage of natural fibre and commands a bigger share than India in the global jute market.
Jute sector employs about four 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.
Frequent power cuts affect jute industry
Kolkata April 28, 2009: Frequent power cuts over the last 15 days in and around Kolkata has taken its toll on the jute industry. The Indian Jute Mills Association (IJMA), the representative body of the jute mill owners, has written to Mrinal
Banerjee,minister-in-charge, department of power, government of West Bengal, Sumantra Banerjee, managing director. Calcutta Electric Supply Corporation and Malay Kumar De, chairman and managing director, West Bengal State Electricity Distribution Company, seeking implementation of the 'scheduled and rationing power system’ in jute mills, to tide over the current power shortage across West Bengal. .
The system will mean a scheduled electric supply and rationing programme exclusively for the jute mills. "This will naturally put an end to the current unregulated and unmonitored power disruption and help the industry plan in a more scientific method to combat the current situation," said Sanjay
Kajaria, chairman, IJMA, said in the letter.If the government does not go for the rationing system, the jute industry has
threatened to go for long-term closure of work. The power crisis in the jute mills might result in a "mass or
forced closure" of the mills in the state on a long-term basis to reduce its daily losses, Kajaria said.
The power situation had resulted in "troubles at the mill level with workmen sentiments running contrary to situations because of disruption," the letter further said.
Moreover, it had resulted in a daily rise in power costs by almost four times, as the 59 jute mills in the state were mostly thriving on generator support, Kajaria said.
Source: Business Standard
Demand for Indian jute bags rising in Europe
Delhi April 22, 2009 (PTI) :Amid increasing awareness against the
use of plastic bags, especially in the European countries, Indian jute carry and shopping bags exporters shipped over 40 million bags in the
fiscal ended March 2009 and the number is likely to cross 75 million in the next three years.
"We see a big scope globally for Indian jute shopping bags as an alternative to plastic bags," President of
Association of Jute and Handicrafts Entrepreneurs of Eastern India Sushil Khetan said at Indian
Sourcing Fair here. India's export of jute bags in 2008-09 is estimated at Rs 200
crore while it was Rs 120 crore in the previous year, he said. As per industry estimates, India had exported about 40 million
jute bags mainly to Europe in 2008-09 and the number is likely to cross 75 million by 2011-12.
With the entry of big jute mills in manufacturing of the bags, the production of the item, which is mainly in the micro and small enterprises, has picked up substantially in a couple of years.
Though the jute bags market is still in a nascent stage, Indian entrepreneurs see a huge opportunity for themselves as they do not see major competition from any other country, not even from jute-growing Bangladesh.
JMDC on revival mode in Jute sector
KOLKATA, February 5, 2009: The Jute Manufactures Development Council
(JMDC) has intensified efforts to launch a massive modernisation drive in the conventional jute sector. It is also working on several other diversification concepts, like development of soil savers or geo-jute, which is a mainstay for
infrastructureconstruction-related work. This is under Jute Technology Modernisation (JTM) scheme with
an outlay of Rs 356 crore. Of this, Rs 298 crore will be spent on JTM schemes by way of modernisation that will be implemented under the Mini Mission III and IV, spread over a period of five years till 2012.
It is understood that there’s been a recent surge in interest for producing jute geo-textiles (JGT), among manufacturing jute mills, following the successful JMDC-led jute delegation that visited users countries like Syria, Poland and the US. Renewed interest in production and promotion of geo-textiles apart, efforts are also being made by JMDC for promoting and improving process technology by encouraging
development of high-speed jute machinery and product mix.
For this purpose, an R&D centre is being set up with the approval and assistance of the Union
government, taking JMDC into confidence. In fact, the government has joined hands with
Kolkata-based private engineering firm — the Kajaria-owned Lagan Jute Machinery — on a public-private-partnership (PPP) basis. The new venture — Centre for Jute Machinery Development — is already on the job of imparting training and development of high-speed modern machines that are compatible for use in the jute industry. JMDC’s efforts are being supplemented by National Centre for Jute Diversification
(NCJD), another body for promoting jute diversification, through the setting up of 10 jute parks, of which four are in West Bengal. Officials and private bodies attached to the setting up of these jute parks at jute-grown districts in
selected states, are confident on coming up with the ventures shortly. Other than high-speed machinery development and promotion of
different jute diversified items, JMDC officials over the past, have primarily focused on the maximum usage of eco-friendly geo-jute or soil savers. Currently, also different state governments are evincing interests in using geo-textiles in building roads, dams and in flood protection mechanism.
Geo-jute has also universal acceptability, as has been promoted by
JMDC, because of its bio- degradable nature, abundant availability, excellent drapability, greater moisture retention capacity, lower
costs and ease of installation. The largest use of JGTs has been done by different road construction bodies working under the Pradhan Mantri Grameen Sadak Yojana
(PMGSY) and Bharat Nirman schemes. Though in the initial stages, there were some rumblings from some users states over the efficacy of JGT,
later on, manufacturers received huge orders for supplying of the materials. Of late, states with hilly tracts like Uttaranchal, are booking orders for JGT supplies to build roads leading to different pilgrim
points tucked away in the remotest areas of the Himalayas. Source: The Economic Times
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