Fire in 150-year-old jute mill
  Barrackpore (WB), March 8, 2010 (PTI): Fire broke out at a 150-year-old jute mill in the northern fringes of Kolkata today, reducing to ashes 700 tonnes of finished goods. The fire broke out at Baranagar jute mill at around 5.30 pm. However, no one was injured in the incident as workers were safely evacuated, fire department officials said. About 13 fire engines brought the blaze under control after about two-and- a-half- hour. The fire though under control was still on and people living in the vicinity have been moved out temporarily, they said. Meanwhile, the mill management claimed that the loss was estimated to be of about Rs 2 crore and sparks from running machines could be the reason behind the blaze. 
 Jute geo-textiles for railway track: Mamata
 Kolkata, Feburary 24, 2010 (IANS): Railway Minister Mamata Banerjee Wednesday said her department would explore the possibility of using jute geo-textiles in railway tracks - a decision welcomed by the jute industry. “Railways will explore the possibility of using jute geo-textiles wherever the soil formation of the railway track is unstable and weak,” she said in her budget speech.
 “It’s a nice decision. It gives validation to our efforts with jute geo-textiles in the last few years,” Atri Bhattacharya, Jute Manufactures Development Council (JMDC) secretary, told IANS. In road construction, jute geo-textiles give more durability to roads. Geo-textile is eco-friendly, bio-degradable material that is used for soil conservation and soil management. For roads, jute is used as a sub-grade between the foundation and the upper layer. “We have already used geo-textiles for two stretches of railway track between Madhusudhanpur and Sebaichandi section of the Howrah-Burdwan chord line, which has helped reduce the subsidence level to a huge extent,” he said.Bhattacharya also mentioned that this approach would open up a huge opportunity for the domestic market.
  Jute festival kicks off in Chennai
  Chennai February 17, 2010:The Jute Manufacturers Development Council (JMDC), a statutory body under the textiles ministry, would promote diversified jute products, said Union textiles minister Dayanidhi Maran. Inaugurating the four-day Jute Festival here , he said the ministry had earlier launched Jute Technology Mission, an initiative to revive the industry. Under this, the ministry not only promotes new technical applications but also undertakes aggressive marketing of lifestyle products.
  Maran also announced the opening of retail outlets for jute diversified products co-branded with JMDC. These outlets will  sell high-quality products for customers in Chennai.He said many units in the southern states had developed new variations, including super-softened jute composite fabrics and decorative items. Source: Business Standard
  Trade unions call off jute strike
  Kolkata, February 12, 2010: Bengal jute mill unions today called off their indefinite strike after 61 days following an agreement that would ensure a monthly hike of Rs 1,164 in wages, including Rs 321 in dearness allowance, to about 2.5 lakh workers in 52 mills.
  The tripartite agreement for three years was reached at the intervention of the state labour department after a series of meetings at both the state and central levels. Labour minister Anadi Sahu said a wage board for the workers would be formed within three months. He said the mill owners had agreed to clear the dearness allowance arrears in six installments. The textile ministry, because of the strike, has already diluted the mandatory jute packing order. Sanjay Kajaria, the chairman of the Indian Jute Mills Association, said, “It would have been a disaster had the strike at the mills continued further. Immediate cost increase for the industry would be Rs 320 crore and could go up to Rs 1,003 crore by January 2014.”
  Five of the 20 odd trade unions, including the All India Trade Union Congress (AITUC), refused to sign the agreement as the workers would not benefit much. AITUC leader Debasish Dutta said the unions, however, would ask their members to join duty. It was agreed that the payment of gratuity arrears, estimated to be around Rs 300 crore, would be cleared in three years. Source: The Telegraph
  Grant-in-Aid for Promoting Jute Geo-Textile in Road Construction 
  February 02, 2010 (PIB): The Ministry of Rural Development has released Rs.27,76, 151/- (Rs. Twenty Seven Lakh Seventy Six Thousand and One Hundred Fifty One) only to Jute Manufactures Development Council as Consultancy Charges for the Pilot projects under Pradhan Mantri Gram Sadak Yojana (PMGSY) using Jute Geo-Textile for rural roads in the country. 
  This amount represents the 25% of 2.5% of the conventional cost of 09 (nine) road works constructed  under PMGSY using Jute Geo-Textile Technology. The Jute Manufactures Development Council (JMDC), a Statutory Body under the Ministry of Textile, Government of India is scheduled to execute the works under Pilot projects in accordance with MOU entered between JMDC and the National Rural Roads Development Agency (NRRDA). 
 Jute mills will get a higher subsidy 
  New Delhi, January. 28, 2010: Jute mills engaged in modernisation will get a higher subsidy of up to Rs 3.5 crore against the previous limit of Rs 75 lakh, the cabinet decided today. “This is expected to provide the much needed incentive for the jute industry to invest in modernisation on a significant scale,” the cabinet committee on economic affairs (CCEA) said in a statement. For new and existing mills in the Northeast, the cap has been enhanced to Rs 4 crore. Under the previous scheme of the Jute Technology Mission, the ceiling on subsidy was Rs 1 crore for mills in the Northeast and Rs 75 lakh in the rest of the country. The total outlay for the scheme is Rs 80 crore. Poor offtake under the previous scheme has prompted the CCEA to raise the ceiling.
  “Based on a techno-financial viability study, it was worked out that the subsidy cap of Rs 3.5 crore would mean 100 per cent viability gap funding for mills having capacity of 70 tonnes per day or lower,” the textile ministry said. Mills with larger capacity will be able to carry out partial modernisation; alternatively, they can get benefits under the technology upgradation fund scheme, which has no subsidy caps. Proposal from Bengal mill owners 
  As the jute strike in Bengal reached its 46th day, representatives of the mills in a meeting with the unions today proposed paying the revised wages and arrears in instalments. However, the unions have not agreed to the proposal but consider it as a favourable sign as this is the first time the management has put forward a package. The unions, management and the state representatives will meet again on Friday at Writers’ Buildings. Source: The Telegraph
  Buddha seeks Pranab’s intervention in jute sector strike
  Kolkata, January 25, 2010: Chief Minister Buddhadeb Bhattacharjee has written to Finance Minister Pranab Mukherjee seeking his intervention in the indefinite strike in the jute sector since December 14, 2009.  In a letter dated January 21, Bhattacharjee wrote to Mukherjee seeking his intervention to prevent further dilution in the packaging order and take steps to resolve the issue. 
  The Consumer Affairs, Food & Public Distribution Ministry has sought a second dilution from the Textile Ministry of 3.80 lakh bales of jute bags for the rabi crop, apprehending shortage in the jute sector because of the strike. In December, the Textile Ministry had allowed the Food Ministry to procure 3.79 lakh bales of jute bags for food grain packaging. Indian Jute Manufactures Association (IJMA) chairman Sanjay Kajaria said if the second round of dilution took place then reopening of the mills would be in the doldrums.  Source: Indian Express
   Indo-Bangla on jute research 
   Kolkata, January 22, 2010: With an aim to tap the potential of jute fabrics in preventing soil erosion in river banks and road edges, Bangladesh and India have launched a joint study programme for research and development of jute geo-textiles. The recently-launched $3.6-million research project will aim at standardisation of design, methodology and specifications for use of jute geo-textiles.
  Jute suffers fresh jolt
  Kolkata, January 16, 2010: The government has decided to use mostly plastic bags to pack rabi crops. Almost 80 per cent of the crop will be packed in plastic instead of jute bags till the end of February. Under the Jute Packaging Materials Act 1987, foodgrain and sugar are supposed to be packed entirely in jute bags, but the ongoing strike at the jute mills from December 14 has affected supplies.
  On Thursday, the Union ministry of consumer affairs, food and public distribution, convened a meeting to review the supply position of jute gunny bags and place orders for plastic bags. According to Sanjay Kajaria, chairman of the Indian Jute Mills Association, it was decided in the meeting to place an order for 3.79 lakh bales of plastic bags over and above the 3.8 lakh bales ordered on December 24. The ministry had estimated the total requirement for packing rabi crop at 9.77 lakh bales of 50-kg gunny bags.Kajaria said he chose to “skip the meeting to avoid the humiliation of attending a meeting where officials would place orders for plastic bags because the jute industry failed to keep its supply commitment.’’ 
  The jute industry had supplied 1.40 lakh bales before the strike began. After the 7.59 bales of plastic bags are procured, the jute sector will be left with an order of 78,000 bales only. Even if the strike is called off, the industry will have a meagre order book. Source: The Telegraph Kolkata
  Strike costs jute industry Rs 1,200-crore 
  Kolkata, January 14, 2010: The jute industry has begun to count the losses since 20 trade unions resorted to an indefinite strike since December 14, 2009, putting production, domestic and international supplies on hold. With 48 of the 54 operating jute mills in West Bengal on strike—three are under suspension and three are working ignoring the strike notice—the losses have accrued to Rs 1,200 crore in 30 days of shutdown. According to Sanjay Kajaria, chairman, Indian Jute Mills’ Association, the industry was losing Rs 40 crore everyday, with production losses alone amounting to Rs 16.97 crore – the mills 
produce 3.77 thousand mt of jute daily, pegged at Rs 45,000 per tonne. 
  The strike, third in three years, was called after tripartite wage talks collapsed— the unions have been demanding implementation of a wage settlement decided on in January 2002. What’s making matters worse for the industry is the recent recommendation made by the textile ministry for a 20% dilution in jute packaging norms set by the  Union cabinet in September 2009, which had made it mandatory for the food grain and sugar sectors to use jute bags. 
  The IJMA has also sent the preliminary report of consultant Ernst & Young on the jute industry to the Centre. As per the jute industry vision, by 2015 the industry should grow to 23.5 lakh mt at an annual CAGR of 5%, but the E&Y report says that in order to realise these ambitious numbers, “it is imperative for the Indian jute industry to increase not only its raw jute production levels but also its processing technology and capacity.” It has also suggested that since production of jute goods is demand driven, existing markets need to be developed and nursed. At the same time emphasis should be laid on developing new generation jute products like technical textiles, shopping bags, jute carpets, matting etc. 
The report also lays bare the challenges faced by the jute industry like lack of availability of required quality and quantity of raw jute and an ineffective price stabilisation mechanism. 
  The problems start with the crop itself which has seen limited increase in productivity due to lack of adequate quantity of certified seeds, low mechanized farming, absence of seed buffer stocks. E&Y says scant efforts have been made to grow jute seeds in West Bengal where more than 60% of the area under jute cultivation exists. Source: Financial Express
  Concern over the excessive import of jute 
  Kolkata, January. 11,2010: The Prime Minister’s Office has expressed  concern over the excessive import of jute and its finished  products from Bangladesh last year. India allowed duty-free import of jute and jute products from January 1, 2008, after gradually reducing the customs duty  from as high as 16.5 per cent a decade ago. During April-November 2009, the volume of imported raw jute  jumped 120 per cent over the same period last year, according to the Jute Manufactures Development Council (JMDC). The growth in value was 317 per cent.
  The industry had brought this abnormal rise in import to the notice of both the PMO and the Union textile ministry. The PMO  is believed to have sought an independent report from the Jute Commissioner in Calcutta so as to take up the matter during Hasina’s visit. The government fears excessive import may 
affect both the farmers and the industry. According to the JMDC, the government body which promotes the export of jute products and monitors import, the flow of raw  jute from Bangladesh during April-November was 79,604 tonnes  at Rs 188.7 crore. Import, during the same period in 2008, was  36,161 tonnes at Rs 45 crore.In jute products, import was 69,180 tonnes at Rs 256.3 crore  during the period under review, up from 46,840 tonnes at Rs 127.6 crore. Source: The Telegraph
  No end in sight to jute strike 
  KOLKATA, January 8, 2010: The indefinite jute strike, spearheaded by 20 central trade unions (TUs), is 25 days old, but there is still no sign of an amicable settlement . The state and the central governments have held several rounds of talks with jute industry representatives and the striking TUs, but the contending parties have so far refused to budge. As a result, the strike continues. 
 The industry submitted a number of proposals to the state labour  minister when representatives of both Ijma and non-Ijma mills met him at a recent meeting. Unless these proposals are accepted and implemented , the industry said it will not be able to pay the DA, PF, ESI and gratuity arrears to mill workers numbering over 2 lakh. 
  The industry also pointed out that in the event of an industry wide strike , the TUs calling the strike should see that no mill is exempted, unlike earlier strikes. In support of its reasoning , industry sources said there is a wide disparity in mill wages and, therefore, it becomes an incumbent on all parties to see that the settlement is implemented in all mills so that there are no variations. It also said the latest recommendation of Tariff Commission 2009 for justified price of B.Twill bags must be implemented immediately .It is also necessary to implement productivity-linked wages as agreed upon in the three earlier tripartite agreements. Source: The Economic Times 
  WB jute mills stir: Govt eases foodgrain packing norms 
  New Delhi, Jan 1 (PTI) The entire foodgrain production need not be packed in jute bags, following relaxation of a Central rule that mandated 100 per cent jute packaging. The Ministry of Textiles relaxed the jute packaging order in the wake of strike in the jute mills, resulting in shortage of packaging bags made of the environment-friendly fibre.
  The Government has given relaxation equivalent to 3.84 lakh bales for the marketing season of Kharif (2009-10) and Rabi (2010-11), an official said. Following this, the foodgrain can now be packed in synthetics to the extent the rule has been relaxed. "The decision comes in the wake of the wage-related strike in 52 mills of the total 54 in West Bengal. Besides, the drought in the state has affected jute 
production," he said.