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Major Jute News 2009 (Current News) 

   

  Govt eases mandatory jute use order up to 20 per cent
  Kolkata, December 30, 2009: The textile ministry has diluted the mandatory jute packing order for foodgrains by up to 20 per cent till May. This means 20 per cent of the foodgrains procured by various agencies can be packed in alternative materials.
  In a notification issued today, the ministry said the move would ensure enough packing material for kharif and rabi crops. The jute industry may not be able to meet the demand for bags because of the indefinite strike since December 14.The order has taken by surprise both the mill owners as well as the Bengal government. The order comes within two days of Bengal chief minister Buddhadeb Bhattacharjee’s meeting with Prime Minister Manmohan Singh where the problems of the industry were discussed. Bengal labour minister Anadi Sahu said the state government would take up the matter with the Centre soon. 
  The textile ministry has estimated that 10.48 lakh bales of jute bags will be required from November to February. The supply of bags was around 40,000 bales till December 14 when the strike began.The ministry sees a shortfall of 3.8 lakh bales because of the strike. 

 
Jute mills seek PM’s help on price hike
  Kolkata, December 28, 2009: The Bengal jute industry is hopeful that Prime Minister Manmohan Singh will help it to meet to its long standing demand for higher B. Twill bag prices. The central government’s Tariff Commission had made a recommendation for higher prices, but this has not been implemented. The Union textile ministry has been sitting on a report  submitted in June this year by the Tariff Commission “We had no access to the Prime Minister’s Office, but now that Bengal chief minister Buddhadeb Bhattacharjee has taken up the issue with Singh on Sunday, we can expect something positive,’’ said Sanjay Kajaria, chairman of the Indian Jute Mills Association (Ijma). Bhattacharjee said he had urged Singh to impress upon the Union textile ministry the need to adopt a firm and long-term policy on jute to safeguard it from competition from synthetic industry and facilitate exports.
 The government and various state agencies annually buy over 15 lakh tonnes of the B. Twill bags —special sacks used in packing rice and wheat. According to the industry, the government was still following an outdated system of calculating the pricing formula for the bags causing the industry to lose over Rs 300 crore since 2001.The implementation of the Tariff Commission’s recommendation  is also crucial to end the deadlock in the industry. The trade unions have gone on an indefinite strike since December 14 seeking implementation of the owners’ statutory obligations such as regularisation of provident fund and the payment of arrears. Over two lakh workers have been affected by the strike. 
Ijma says the industry will be in a position to meet part of the demands of the unions if the government agrees to higher prices for the bags.
  There have been five tripartite meetings so far with the unions to solve the deadlock. At these meetings, the owners insisted on implementing the Tariff Commission’s recommendations on higher bag prices, which would enable them to pay more to the workers. Source: The Telegraph

 Jute mill gutted in Howrah

  KOLKATA, December 26, 2009: A jute mill at Malipanc hghora in Howrah was gutted in a fire that broke out late on Thursday. Almost 24 hours later, the fire was still to be fully doused when reports last came in on Friday. Seventeen fire tenders have been sent so far to bring the blaze under control. Firefighter Munnalal Chouvey was injured while trying to douse the fire and was admitted to TL Jaiswal hospital. 
  Fire services officials said they were yet to find out the cause of fire. Though it is suspected to be caused by a short circuit, There was nobody inside the jute mill on Joy Bibi Lane on Thursday night as night shift work was not done due to Christmas on Friday. Fire fighters had a tough time controlling the fire as strong winds were flowing in from the river, beside which the jute mill is located. 
  
Pranab Mukherjee  takes up Bengal jute strike 
   Kolkata, December 25, 2009: Union finance minister Pranab Mukherjee on Thursday said he had taken up the matter relating to the ongoing jute workers' strike in West Bengal with central trade unions and the state labour ministry. "I have already held some discussions with the central trade unions and state minister for labour on the issue," Mukherjee said at the inauguration of the BNCCI-sponsored 23rd Industrial India Trade Fair here. The jute workers' strike which began on December 14 entered the 13th day today.
 
Tripartite meeting called to end jute strike 
  KOLKATA, December 19, 2009: To resolve the stalemate caused by the indefinite jute strike in West Bengal since Monday, the State government has called a tripartite meeting on Saturday, resuming the reconciliatory process.The chairman of the Indian Jute Manufacturers Association, Sanjay Kajaria, said this was a positive move. The strike was called by 20 trade central unions including the Bharatiya Mazdoor Sangh after the breakdown of five rounds of talks between the State Labour Department, the management and the trade unions. 

 
Chief Labour Commissioner to visit WB 
  New Delhi, December 17, 2009 (PTI): In in the backdrop of the jute mill workers in West Bengal going on an indefinite strike, the Chief Labour Commissioner is expected to visit the state on December 23 to hold discussions with the government on the prevailing situation there.   During his visit, S Mukhopadhyay is also expected to release a report of an expert committee constituted last year to look into the problems of workers in the jute industry, said a Labour Ministry source.
  The workers, who went on strike from December 14, are demanding job security and payment of arrears in dearness allowance and removal of anomalies in payments of provident fund, gratuity and bonus among others. Several trade unions have also extended their support to the striking workers. The state Labour Minister Anadi Sahu also called on Minister of State for Labour  and Employment Harish Rawat and discussed about the strike and the workers demands. 

  Altogether 52 of the 54 jute mills in West Bengal were closed today
   Kolkata, December 14, 2009 (PTI) Altogether 52 of the 54 jute mills in West Bengal, employing 2.5 lakh people were closed today, after an indefinite strike was called by 19 unions demanding payment of dearness allowance, provident fund, gratuity, bonus and minimum wages.
  The unions also want the Jute Corporation of India (JCI) procure bales directly from farmers for supply to the mills. General Secretary of Bengal Chatkal Mazdoor Union Gobinda Guha told PTI that 52 to of the 54 mills were closed. 
  The Central Jute Mill at Budge Budge and the Meghna Jute Mill at Jagaddal were open. "We hope that the two mills which remain open will respond to the strike call," he said.
  However, a meeting with the Chairman of Indian Jute Manufacturer's Association (IJMA) Sanjay Kajeria remained inconclusive. The Bhartiya Mazdoor Sangh affiliated to the BJP also joined the strike. 

   Use of jute bags 
   Lok Sabha, November 26, 2009 (PIB) :At present there is no proposal with the Government to dilute the reservation norms for compulsory use of jute bags by 25 per cent. 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 Gurudas Dasgupta and Shri Bibhu Prasad Tarai. 
  The reservation for Jute Packaging Material for packaging of foodgrains under the Jute Packaging Material (Compulsory use in Packing Commodities) Act, 1987 leads to consumption of around 58% of the jute produced in the country. By bringing into effect the provision of JPM Act the Government provides relief to 37 lakh workers employed in Jute Mills and ancillary units as well as support the livelihood of around 40 lakh farm families. Besides, it helps to protect the environment because jute is a natural, biodegradable and  reusable fibre. The dilution, if any, is affected in the packaging norms only after consultation with all the stakeholders to avoid disruption of foodgrain procurement in the country. 

  TUs call indefinite strike in jute mills from December 14

  Kolkata November 18, 2009 (BS) : About 20 trade unions operating in jute mills have decided to go for an indefinite strike from December 14 this year, demanding payment of their statutory requirements, primarily dearness allowance, provident fund, gratuity and bonus. “At a meeting attended by 20 trade unions working in the jute industry we have unanimously decided to go on an indefinite strike,” said Gobinda Guha, General Secretary, Bengal Chatkal Mazdoor Union. 
  The workers have also urged the Union Government to authorise the Jute Corporation of India (JCI) to procure jute directly from the jute growers and supply it to the industry, he added. “The indefinite strike will escalate jute prices further,”  said Sanjay Kajaria, chairman, Indian Jute Mills’ Association (IJMA).
  In 2007 there was an industry wide strike for 63 days, which was followed by another 18 days' strike in 2008.There are nearly four million farmers involved in the raw jute production in West Bengal. “Prices of finished Hessian goods has already increased by about nine per cent from Rs 55,000 per tonne to Rs 60,000 per tonne over the last fortnight as they have already discounted for the forthcoming strike,” said 
Kajaria. The jute industry has been witnessing labour unrest and frequent strikes over the last few years on issues like non-payment of standing provident fund (PF) and gratuity dues. In May last year, a personnel of a jute mill in Titagarh, North 24-Parganas, was battered to death in his office on the  mill premises, while the Sangrami Mazdoor Union (SMU) conducted protests in the premises.

  
Fire damages jute mill in Howrah
   Howrah (WB), November 15, 2009 (PTI): A portion of Fort William jute mill was destroyed by fire today at Shibpur in Howrah town. The police said four fire tenders have been trying to douse the flame since 2 
pm. The fire is under control now, Fire Brigade officials said. The cause of fire and the extent of damage were unknown, the police said. The area near the jute mill has been cordoned off.

  Trade unions are planning a fresh round of agitation
   Kolkata, November. 9: 2009:  Trade unions in the jute industry are planning a fresh round of agitation. This has prompted veteran industrialist S.S. Kanoria to urge chief minister Buddhadeb Bhattacharjee to take initiative and prevent workers from going on a strike.

 
Mamata lines up projects and reviving the jute industry
  Kolkata, November 9, 2009: Several industrial projects planned in and around the city will commence soon, said Mamata Banerjee on Sunday. “Work on the coach factory at Kanchrapara will start between a 
month and a month and a half. I have sent the proposal to the Planning Commission and expect approval any day,” she said. The component factory at Hooghly’s Dankuni and a high-speed bogie casting unit at Majherhat, South 24-Parganas, were next on the cards, the minister said. 
  Mamata also spoke about reviving the jute industry. “There are many closed jute mills in and around Kanchrapara. The jute industry will be revived and there are other plans as well,” the minister stated.

 Jute Manufacturers Council to organise roadshows, events to boost sales

  KOLKATA, November 2, 2009 : In a renewed bid to expand the domestic market for diversified jute products (DJPs), the Jute Manufacturers Development Council (JMDC) is on course to organise a series of roadshows and buyers-sellers meets in major cities to boost sales of those products. 
  The promotional programme, which in the first round has covered places like Mumbai, Chennai, Hyderabad and Bangalore in the first half of the current year, is set to start its second round with organising roadshows and buyers-sellers meets in Goa. The weak-long programme, billed as ‘Goa Jute Week’, begins Wednesday to catch the attention of tourists to a wide range of DGPs - including jute made- ups, home furnishings, floor coverings, handicrafts and other gift and novelty items. 
  For getting good response from retail customers for DJPs, especially jute hand bags and shopping bags, such week-long shows on DJPs will again be rotated in New Delhi, Bangalore and Hyderabad in the coming months, said JMDC secretary Atri Bhattacharya. In this endeavour, JMDC has tied up with state- level handicrafts and handloom promotional bodies and Central Cottage Industry Emporium.
  At present, DJP’s production is estimated at Rs 400 crore in the Rs 5,000-crore total jute goods market. So far, its manufacturers largely lean on export markets, which as eco-friendly bi-degradable products, enjoy a niche market worldwide. Out of total jute goods exports of around Rs 1,200 crore last year, DJPs accounted for a 35% share. But with recession continuing in the world trade, JMDC has been asked by the textile ministry to beef up its promotional measures for the domestic market. As an arm of the textile ministry, JMDC acts as a nodal agency to promote DJPs’ marketing at home and abroad.
 - The Economic Times 

  
Govt to increase MSP for raw jute: Maran 
   Kolkata, October 7, 2009 (PTI) Textile Minister Dayanidhi Maran today said the government is in favour of increasing the minimum support price (MSP) for raw jute by at least Rs 300 per quintal."There is a need to encourage farmers to increase the production of raw jute in the country," Maran said at an interaction on the future of Indian jute industry here.  At present, the MSP for raw jute stands at Rs 1,375 per quintal. Criticising the jute industry for failing to modernise factories Maran said, 
   "Since there is a definite business from the government, the industry has become lethargic." "There is a need to change attitude and the industry has to wake up," he said.Unlike the cotton technology mission, he said, the progress of the jute technology mission is slow. "The jute industry needs to diversify to protect its future. 

 
Jute and cotton bags are back in demand in HP
   Shimla, October 2, 2009: Jute and cotton bags are back in demand as Himachal Pradesh say goodbye to non-biodegrable polythene bags on Friday. In 1999, Himachal Pradesh was the first state to ban recycled colour polythene bags. All kinds of polythene bags are currently banned in Jammu and Kashmir, 
Delhi and Chandigarh. Chief Minister Prem Kumar Dhumal said traders had been given more than one and a half month’s time to switch over to biodegrable bags. Initially, the ban was to come into force on August 15, as per a Cabinet decision taken in June 2009. Opposing the decision, traders had met the CM and asked for a month’s time to exhaust their stock of carrybags. 
  Under the provisions of the Himachal Pradesh Non-Biodegrable Garbage (Control) Act 1995, violators of the ban, including citizens, tourists, traders and commercial establishments, will be punished with a fine of Rs 1,000 to Rs 5,000. The notification issued by the HP Pollution Control Board says the dumping of 
used polythene carry bags at public places and hill slopes will also be an offence. 
  The board has proposed to install hoardings and display boards at the state’s entry points and other places. Tourists coming to the state on October 2 will be given jute and cotton bags as a symbolic gesture. - Express India
 
New fibre law may level tax for synthetic & cotton fibre
  NEW DELHI, September 26, 2009: The textile ministry is working on a policy to bring parity between cotton and synthetic fibres, textile minister Dayanidhi Maran said. India’s existing policies are biased in favour of cotton. India’s consumption of natural and man-made fibres is in the ratio of 60:40 as against the global trend of 35:65. The proposed move will suggest ways to end this disparity, he said. The policy will be ready by the end of this year. “The national fibre policy will look into ways  towards increasing exports and to boost local demand,” he added. The policy is being formulated by a 41-member expert group consisting of textile exporters and policy experts headed by textiles secretary Rita Menon. “There is a need to have a policy on taxation and pricing of all these fibres to ensure that there is a  level-playing field,” Indian Spinners’ Association president VK Ladia said. 
  There is no comprehensive policy governing fibres in India. Cotton, for instance, as an agricultural product is being handled by the agriculture ministry, jute by the commissioner of jute while man-made fibres is being taken care of by the ministry of heavy chemicals, he said. 
Source: The Economic Times

 
Jute futures may be banned from November
   Bhubaneswar September 22, 2009 (BS): After suspending futures trading in sugar from May 26 till December this year, the Forward Markets Commission (FMC) is mulling a similar ban on jute from November, according to industry officials. The ban is being considered as futures trading is believed to have led to a rise in prices of raw jute in the domestic market. Jute industry sources said the government might impose the ban from early November. The move is expected to rein in prices of raw jute.
   Earlier this month, the Indian Jute Mills Association (IJMA), the apex body of the jute industry in the country, had sought the intervention of the Union textiles ministry for such a ban.The IJMA had appointed Technopak Advisors, a management consulting firm, to study the impact of futures trading on raw jute prices. According to its report, the trading has abnormally scaled up prices, which has adversely affected jute trade without benefiting the cultivators.
   Raw jute prices in the domestic market had touched an all-time high of Rs 30,200 a tonne in July this year before falling to the current level of around Rs 21,000 a tonne.The report said the price rise had benefited only the intermediaries in jute trade like farias (small traders), stockists, mill agents and brokers, leaving the farmers high and dry. In 2008-09, farmers got an average price of Rs 14,780 a tonne, 
lower than the average yearly market price of raw jute by Rs 5,570 a tonne. Moreover, industry sources said the abnormal price increase had rendered jute products non-competitive in the market, prompting users to switch to synthetic fibres. The report further stated that raw jute was not suitable for futures trading as the market for the commodity was very small both in volume and value terms as compared with other major agri commodities.
   The market size of raw jute is in the range of Rs 2,000-3,000 crore a year as against the combined market size of rice and wheat (two commodities in which futures trading is banned), which is more than Rs 50,000 crore a year. 

  Centre to continue 100% reservation for jute bags

  Kolkata/ Bhubaneswar September 09, 2009, In a major relief to the jute industry in the country, the Cabinet Committee on Economic Affairs (CCEA) has decided to continue 100 per cent reservation for jute bags for packaging of sugar and food grains by the government procuring agencies. The decision was taken at a meeting of CCEA held on Monday. The continuation of 100 per cent reservation under the Jute 
Packaging Materials Act (JPMA) of 1987 has put to rest all speculation of a possible 25 per cent dilution recommended by the Centre’s Standing Advisory Committee chaired by the Union textiles ministry. 
  The dilution proposal had led to an unprecedented situation which had resulted in a progressive decline in prices of raw jute and jute goods in this month.

 
Textiles ministry calls for third party study on jute logistics
  Kolkata/ Bhubaneswar, September 04, 2009: Responding to the concerns raised by the jute industry 
pertaining to the supplies of jute goods, the Union textiles ministry has called for a third party study by the Directorate General of Supply and Disposal (DGS&D) to streamline logistics issues of the industry. The textiles ministry has pointed out that the procurement of jute bags by the government procuring agencies which used to be 16-17 lakh bales per annum has now gone up to 24-25 lakh bales every year.
The ministry is taking necessary steps to ensure that the production capacity of the jute industry in the country is geared up to meet the said requirement. 
  Indian Jute Mills Association (IJMA), the apex body of the jute industry in the country had earlier suggested certain Terms of Reference for the third party study and the textiles ministry is in agreement with the same. The ministry is also prepared to provide funds for implementation of the recommendations of DGS&D in case of fund constraints. The ministry is in favour of appointing a third party assessor  for the study and wants the study to be commissioned at the earliest so that the challenges of logistics and despatch of jute goods can be managed in a professional manner. In its Terms of Reference, IJMA had suggested to examine whether staggered indenting was beneficial or rake wise orders should be allowed for the individual jute mills. IJMA has suggested the introduction of a long-term procedure  of system inspection and the need for a bilateral agreement between the Government and the other procuring agencies of jute bags. On logistics issues, IJMA has suggested DGS&D to work out a scientific model on despatch of jute goods through road and railways. It has also stressed on revising handling  and branding charges of jute goods. 
Source: Business Standard

  JCI asked to purchase raw jute directly from farmers

  Jangipur/west Bengal August 31, 2009,(PTI) :The Jute Corporation of India has been asked to purchase raw jute directly from farmers instead of middlemen, Union Finance Minister Pranab Mukherjee today said. Though the JCI was supposed to buy jute from farmers, it was not doing so, Mukherjee said. He criticised the jute mill owners' inability to use up-to-date technology in producing goods that would compete favourably with the synthetic alternative in the world market.
  This was despite the fact that worldwide governments were encouraging use of jute bags and other products as they were environmentally safe, the minister regretted. He also called upon jute manufacturers to improve the quality of finished goods as well as marketing strategy to compete in the world market which has gravitated towards synthetic materials for price advantage and other factors.
Mukherjee was addressing the conference of employees of the JCI at Raghunathganj near here.

 
Jute industry seeks third party study on logistics issues
  Kolkata/ Bhubaneswar August 24, 2009: With a view to streamline the supply of jute bags, the Indian Jute Mills Association (IJMA) has sought third party study on logistics issues connected with the despatch of jute goods. The association has pointed out that the third party study needs to be commissioned at the earliest by the Directorate General of Supply and Disposal (DGS&D) to overcome the problem. IJMA has written a letter to DGS&D in this regard. "The Union textiles secretary has already suggested to DGS&D that a third party study on logistics issues connected with the despatch of jute goods needs to be commissioned. We would request that the third party study should be commissioned at the earliest", said Sanjay Kajaria, chairman, IJMA in a letter to DGS&D on Friday.
  The issues pertaining to logistics of the dispatch of jute  bags were taken up in a meeting held on Monday between VP Gupta, deputy director general (S&D) and the representatives of IJMA. The DGS&D had earlier pointed out that the jute mills should not be penalised with demurrage by the Indian Railways if the mills failed to receive the railway receipts in time from the contractors.

  Raw jute prices have fallen 40 percen

  Kolkata, August 18, 2009: Raw jute prices have fallen 40 percent to 18,000 rupees per tonne amid concerns the government may cut reservation of jute bags in packaging of foodgrains and sugar it procures by about 25 percent, as per the Jute Packaging Materials Act of 1987.

  Ethiopia keen on jute, leather joint ventures in Bengal

  Kolkata, August 3, 2009 (IANS): Ethiopia is keen to form joint ventures with companies in West Bengal in sectors like jute and leather, a senior Ethiopian diplomat said here Monday. “We have spoken to the chief minister (Buddhadeb Bhattacharjee) today morning about future cooperation with West Bengal,” said Gennet Zewide, Ethiopian ambassador to India. 
  “We are looking into joint ventures. Thee could be private to private or state to state,” she told reporters on the sidelines of a press conference by Emami Biotech to announce the company’s plantation project in Ethiopia.Indian investments in Ethiopia have jumped to $4.1 billion in the last three years, up from $350 million before that, Zewide said.

  
New crop fails to ease raw jute prices
  Bhubaneswar July 24, 2009; The recent arrival of new crop has failed to ease prices of raw jute in the domestic market with the prices ruling at Rs 30,000 a tonne. The possibility of a further increase in prices has raised serious concerns in the jute industry. According to data compiled by the Jute Balers’ Association, the price of raw jute on July 20 this year stood at Rs 30,100 a tonne compared to the average price of Rs 27,670 a tonne in  June this year. The prevailing price of raw jute in this month has more than doubled as against the average price of Rs 14,880 a tonne in July last year.
  The price of B Twill jute bags was ruling at Rs 41,500 a tonne (as on July 20 this year) which is 45.3 per cent higher than the average price of these bags for the month of July last year. The raw jute price touched alarming levels at a time when raw jute is more or less unavailable, trading volumes are minimal 
and the jute mills across the country are starved of the fibre crop. Industry sources said there is hardly any price difference between the old and new crop which indicates massive speculation. Moreover, there is a fear of the new crop getting impacted by speculative and shady jute operators indulging in  fatka or dhabba trade.
  Apart from speculative trading, there is illegal hoarding of the new crop by speculators with the intention of rigging prices and maximising the profit at the cost of the jute industry. The jute industry is the victim of the market forces where bulls and bears are operating through futures trading in raw jute, added sources. The jute industry has been making abortive attempts to put an end to futures trading in jute for the past one year. According to the estimates of the jute industry, the annualized price volatility for raw jute could be over 53 per cent as against the normal 12.6 per cent worked out by National Commodities and Derivatives Exchange (NCDEX).
  Concerned over the problems of the jute industry in the wake of spiralling prices of raw jute fuelled by speculative trading, the Indian Jute Mills Association (IJMA) has sought the intervention of the Jute Commissioner. IJMA has written to Binod Kispotta, the Jute Commissioner for redressal of the grievances of the jute industry and restore normal condition in the raw jute market to ensure smooth industrial operations of the jute mills. -PTI

 
Jute seeds disappear from government counters
   Kendrapara, July 19, 2009: With seeds ‘mysteriously' disappearing from governmental sale counters, hundreds of jute farmers are left disconcerted. With time running out fast for the sowing operation, the 
farmers have seemingly lost hope for taking up the cash crop cultivation this year. As reports indicate, 
two-third of the jute crop areas is still lying uncultivated. The seeds supplied by the directorate of agriculture are sold off in the open market. Most prospective buyers have not received a single seed grain, alleged farmers. The prevailing mess over the scarce availability of jute seeds is mainly due to the facts that, a greater number of farmers have opted for growing jute this year. 
   Over 10,000 farmers have taken to jute farming this year. Thus, the 89.34 quintals of seeds supplied by the National Seeds Corporation had failed to meet with the rising demands, and it got exhausted days within the opening of sale counters. Since the sowing operation can continue for two weeks from now, arrangements are being made to provide seeds to the remaining farmers, official sources said. While 1,875 hectares of land had been covered under jute cultivation last season, 3,800 hectares of land would be cultivated this year, if the seeds are available within a week, added official sources. 
Source: KalingaTimes 

  
IJMA seeks reversal of 25% dilution proposal
   Bhubaneswar July 15, 2009: The Indian Jute Mills Association (IJMA) has sought reversal of the proposed 25 per cent dilution, recommended by the Centre’s Standing Advisory Committee in 2009-10, in the use of jute bags for packaging of foodgrain meant for government procurement. Sources said, the recommendation for 25 per cent dilution has gained momentum and the Union textile ministry is learnt to 
have prepared a Cabinet note, upholding the move of the committee.
   Concerned over the development, IJMA has approached Pranab Mukherjee and Mamata Banerjee, the Union Cabinet ministers hailing from West Bengal, to initiate steps at appropriate levels to reverse the proposed 25 per cent dilution. IJMA fears that the 25 per cent dilution would lead to use of polymer bags, which will reduce orders leading to production cut, closure of more jute mills and intermittent lay-offs in 
the jute industry. It has also written to Buddhadeb Bhattacharjee, the West Bengal chief minister, on July 9 for redressal of the grievances of the jute industry, said Sanjay Kajaria, chairman, IJMA.
   The jute association has sought Bhattacharjee’s intervention in taking up the issue of the proposed dilution with Prime Minister Manmohan Singh and textiles minister Dayanidhi Maran.IJMA has called for continuation of the 100 per cent reservation for jute bags for packing foodgrain meant for government procurement under the Jute Packaging Materials Act (JPMA) of 1987. The demand has been made by IJMA in the interests of the 4.4 million jute cultivators and industrial workers in West Bengal. The state has 59 jute mills.The recommendation for dilution was made amidst concerns of a dip in raw jute production in the country and the projected shortfall in supply of 600,000 bales of gunny bags this year.
 Source: Business Standard

  Dry July threatens farmers' livelihood 

  RAIGANJ, JULY 14, 2009: Transplantation of aman paddy seedlings has started to be affected in different blocks of North Dinajpur  district due to the lack of rain. If the area has not received  rainfall at the end of the fortnight, jute retting will also be affected and the farmers of the district will suffer financially. 
With the help of shallow machines the farmers have already prepared aman paddy seedlings, but an adequate rainfall by the end of July is essential for transplanting the seedlings. 
   According to the officials of North Dinajpur Agricultural department, this year rainfall has been at extremely low levels in the North Dinajpur district. The lowest rainfall in the district was reported from Raiganj, Itahar, Kaliayganj and Hemtabad. The Principal Agricultural Officer of North Dinajpur district, Mr 
Balaichand Chakraborty, said: “The ideal annual rainfall for North Dinajpur district is 1,400 mm. In July we need at least 400 m.m. But so far this year July has only yielded 113 m.m. rainfall. If we do not receive another 300 mm. rainfall in a week, the transplanting of  aman paddy will be severely affected. Jute plants of the district have matured, and they will also be adversely affected if the rain does not come soon.”
Source: The Statesman

 
'Total ban on plastic bags bad idea' says government
  NEW DELHI , July 9, 2009: The government made it clear that it is not in favour of a blanket ban on useing plastic bags while it is working on use of biodegradable plastic as colouring elements like dyes are a health hazard and thin bags and material can severely jam up sewage systems. 
  Minister of state for environment and forests Jairam Ramesh told Lok Sabha on Wednesday that while reducing plastics was necessary, the material had been promoted initially to save paper and trees. He 
sought to argue that if municipalities made a better effort to manage their solid waste, the plastic problem would reduce considerably. 
  The government, he said, was working on use of biodegardable plastic as reverting to paper bags could be even more hazardous to the environment. People had switched to use of plastic rather than paper the world over some 20 years ago to slow down deforestation. "Plastic itself is a chemically inert substance, used worldwide for packaging and is not per-se hazardous to health and environment. Recycling of plastic, if carried out as per approved procedures and guidelines, may not be an environmental or health hazard," Ramesh said, assuring the House that the government would have a stringent monitoring mechanism in place to ensure that the right kind of re-cycleable plastic is used. 
  "We are moving towards thicker and bio-degradable bags. Bio-degradable is at a nascent stage... some establishments have started using it," the minister said. On the recycling of plastic, he said it would be undertaken in accordance with specifications of the Bureau of Indian Standards (BIS). He also advocated use of jute bags as another alternative to paper bags, as jute was an eco-friendly material. 

 Govt. hikes jute MSP by 10 per cent to Rs 1,375 a quintal
 

  New Delhi (PTI) The Government on day increased by 10 per cent the minimum support price of jute to Rs 1,375 per quintal for 2009-10. The decision to hike jute's minimum support price (MSP) for the TD-5 
grade (ex-Assam) was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) here. "The increase in the MSP is expected to encourage the farmers to step up investment in jute cultivation...," Home Minister P Chidambaram told reporters after the CCEA meeting. 
  The Jute Corporation of India (JCI) would continue to act as nodal agency to undertake price support operations and the losses, if any, will be fully reimbursed by the government.Jute production is estimated at 95.31 lakh bales during the 2008-09 season, compared with 102.21 lakh bales in the previous season. One bale is 180 kgs. The bulk of the jute production in the country comes from West Bengal, Bihar, Assam, Orissa, Andhra Pradesh and Tripura. 

  JK Jute Mill on verge of closure again 
  Kanpur , June 12, 2009: The re-opening of Juggilal Kamlapat (JK) Jute Mill in October 2008 was cause enough to rejoice. But within eight months, the tussle between the management and employees’ unions 
has brought the mill on verge of closure again. The two sides have locked horns over issues that include Medical Facilities under ESI, salary hikes, permanent job to all employees, dearness allowance and 
retirement age. Delay in the payment of salary for May has deepened the chasm.  Violence on June 6 brought matters to a head. The management had to suspend work from June 8. But in defiance to the management orders, work is still being carried out by the employees. The union leaders, meanwhile, accuse the management of failing to live up to its commitment made in October 2008. 

  Jute imports from Bangladesh become costlier by 76 per cent
  Kolkata June 10, 2009: The value of raw jute imports, mainly from Bangladesh, has increased more than 76 per cent over the last year, even as the quantity of imports has fallen almost six per cent. In contrast, the quantity of import of jute goods from Bangladesh increased by almost 19 per cent for April 2009 and 
the value also increased by about 73 per cent, according to the latest jute import figures by the Government of India. Imported jute from Bangladesh is mainly used for manufacturing value-added products by millers in India. However, the mills have failed to diversify and modernise infrastructure, giving 
way to Bangladesh jute products into India.Like India, jute crop in Bangladesh was short by about 30 per 
cent last crop season.
  As a result of the supply-demand mismatch, the exporters in Bangladesh have been raising prices and there have been several instances of non-commitment of supply contracts by shippers, said Sanjay Kajaria, chairman, Indian Jute Mills Association (IJMA).Besides, jute exports from Bangladesh have been increasing to China and Pakistan.
  Recently, the Bangladesh government had announced a 34.24 billion taka ( $500 million) stimulus package for key sectors of the economy, which included 4.50 billion taka cash subsidy for the jute, leather and frozen food exports. The government had also increased the subsidy on exports of jute goods by 2.5 per cent to 10 per cent.  Last year, the Indian government had also reduced the import duty on jute and jute products from 10 per cent to nil, which led to a substantial rise in imports. IJ MA had also urged the government to remove the duty in view of severe competition from Bangladesh.
  Meanwhile, the domestic jute prices continue to rise, and there are apprehensions of a late crop due to adverse weather conditions. Raw jute prices continue to be in the range of Rs 2,300-2,500 a quintal. The prices have been on a rise since June 2008, when jute spot prices were close to Rs 1,400 a quintal. The prices increased to Rs 2,000 a quintal in February 2009. The industry is also likely to suffer due to Centre’s Standing Advisory Committee’s decision use of non-jute bags, up to 25 per cent, for use packaging government procured food grains. - BS 

 Jute mills sore over standing committee dilution proposal

 Bhubaneswar June 02, 2009: The jute mills across the country are sore with the  recommendations of the Centre’s Standing Advisory Committee to allow a dilution of up to 25 per cent in the use of jute bags for packaging foodgrains meant for government procurement.
 The recommendation for a 25 per cent dilution in packaging foodgrains for government procurement was made recently at a meeting of the committee comprising of officials from the Union ministries of agriculture, food, textile and petrochemicals. The recommendation is expected to be placed soon for approval before the Cabinet Committee on Economic Affairs of the Union government.
 The standing committee has recommended a 25 per cent dilution amidst concerns of a dip in jute production in the country in the wake of the closure of eight jute mills in West Bengal and another nine jute mills in the state which were blacklisted for their low quality production.
  The jute production in the country is projected at 9 million bales this fiscal and the standing committee is of the view that this level of jute production would not be adequate to meet the packaging requirements of foodgrains meant for government procurement.
  Sources said the Indian Jute Mills Association (IJMA), the representative body of the jute mills association in the country has taken exception to this dilution plan of the committee. IJMA is likely to submit a petition to the Union textiles ministry soon, voicing its concerns on the issue. The association was also likely to approach the West Bengal  government on the issue, keeping in view the impact of the dilution plan on the Indian jute industry.
 According to the Jute Packaging Materials Act of 1987, food grains and sugar procured by the Food Corporation of India (FCI) and the state food procuring agencies had to be mandatory packed in jute bags up to a level of 100 per cent.
Source: Business Standard 

   Kanpur zoo makes jute mates arrangements for inmates
 KANPUR, May 3, 2009:: The Kanpur zoo, which has over 1,100 animals faces extreme weather conditions every year in summers and winters. According to Zoo director K Praveen Rao jute mats had been placed over the cages of birds, monkeys, bears etc which helped in bringing down the temperature. "The jute mats that have been placed over the animal cages are made wet in quick succession so as to ward off heat and to provide respite to the animals from high temperature," said Rao. 

 Bengal's green jute bags a hit outside

 KOLKATA:, May 1, 2009: The state government's initiative to use eco-friendly green  jute carry bags instead of the conventional plastic bags has attracted the attention of the some other state governments as well. The Pollution Control Board of Delhi recently requested the West Bengal Green Energy Development Corporation (WBGEDC) to send a few jute bags so that they could check out their efficacy. WBGEDC managing director S P Gon Choudhuri said two such bags have already been sent to Delhi. "They wanted to see the product. They have plans to introduce such bags in the Delhi region, too." 
   Just last year, Indian Sweets the Dalhousie utlet of a reputed confectionery chain started selling its sweet products in these eco-friendly bags instead of plastic carry bags. "Many sweet shops and book stores in College Street have started using these bags. The response has been quite encouraging," Gon Choudhuri said, adding that WBGEDC was also holding talks with owners of several retail stores in malls to introduce and promote the use of these eco-friendly jute carry bags. It was earlier this year that WBGEDC had come up with the idea of introducing eco friendly recyclable green jute bags at malls and other commercial establishments in the city to tackle the increasing environment hazard caused by conventional plastic carry bags. 
Source: The Times of India
 

    

 

  High prices stump jute mills
  Kolkata April 21, 2009: Jute has became another commodity where consumer industry (jute mills) has not been able to procure enough raw material as prices kept rising and mills could not use the hedging 
mechanism to secure supplies at a lower price. Jute prices have gone up by 63 per cent in the current jute season, beginning last June, on reduced crop.
  Raw jute prices for the TD-5 variety in West Bengal are currently hovering around Rs 2,370 per quintal against Rs 1,395 during the same time last year. The prices have been on a rise since June 2008, the beginning of the present jute year, when jute spot prices were close to Rs 1,400 per quintal. The prices increased to Rs 2,000 per quintal in February 2009.

  Farmers agitate to grow jute, maize and banana

  Cooch Behar, March 18, 2009: Farmers of Haldibari here have demanded permission to grow jute, maize and banana in the farmland along the India-Bangladesh border. These plants having long stems were barred in view of keeping better vigilance along the border, DM Cooch Behar R K Sinha said.
  Farmers agitated before state food and supply minister Paresh Adhikary yesterday when he reached here for a campaign. Sinha said farmers of 10 districts of West Bengal can not grow these crops due to the ban along the 1,200-km border. The length of the border in Cooch Behar district being 523 km, a large number of them have been suffering, he said. Adhikari said he has requested Chief Minister Buddhadeb Bhattacharjee to take up the matter with the Centre.
Source: PTI

 
Jute cultivation suffers as Central funds not utilised
  PATNA, March 15, 2009: In the season of elections, eastern Bihar districts have things to worry about. As the valuation of the land and other formalities like land transfer meant for the improvement of marketing infrastructure for the sale and purchase of jute in two eastern districts of the state has been pending at the level of the revenue and land reforms department, the Central fund involved runs the risk of being refunded to the Centre. The two districts shortlisted for the implementation of the project under the Centre's Jute Technology Mission (Mini Mission III) are Kishanganj and Araria, but it would benefit farmers cultivating jute in the other neighbouring districts. 
  Incidentally, the project has been cleared for the state after the Jute Corporation of India (JCI) officials and CM Nitish Kumar held consultations in this regard. The twist, however, is that the project is to be implemented by the JCI in league with the district-level Jute Development Committee, while the state 
government has to provide the required land. In effect, the departments concerned have no control on the utilisation of money. Inversely, due to the apathy of the revenue and land reforms department, the eastern Bihar districts would remain deprived of the jute marketing infrastructure which is to be constructed by the JCI. 
  The project envisages construction of godown, purchase platform, assortment shed, office building with information centre and other facilities. It would have provision for departmental purchase centre of JCI to promote cultivation of jute by improving the marketing infrastructure for raw jute. The constructions have to be made at Bahadurganj in Kishanganj and at Forbesganj in Araria district. 
Source: The Times of India  

  Birla Corp withdraws layoff plans at Birlapur unit 

  Kolkata, February 19, 2009: Birla Corporation announced that `Lay-Off` at its Birla Vinoluem, Birlapur unit has been withdrawn. The decision would be implemented on immediate basis, the company disclosed. Birla Corporation (formerly known as Birla Jute Manufacturing Company) manufactures and markets cement, jute products, auto-ancillaries, PVC floor coverings, wallpaper, coated cotton fabrics, iron and steel castings.
Source: IRIS (19 February 2009)

  E&Y study on jute

  Kolkata, February 14, 2009 : The Indian Jute Mills Association has appointed Ernst & Young to study the industry and help work out a long-term strategy for the golden fibre. The jute industry is plagued by several problems. While prices of raw jute have surged — from Rs 1,500 per quintal in July to Rs 2,000 now — an 18-day strike in December has affected the captive market of foodgrain and sugar packaging. 
“We decided to get a reputed agency to do the study so that the stakeholders, including the government, could chalk out a long-term strategy for the industry,” said Ijma chairman Sanjay Kajaria. 
   E&Y director Ram Agarwal said work on the project had already started. “This is the first time such a study in being conducted for the jute sector and we have put in experts in the industry to complete the job within time,” he said. 
Source: THE TELEGRAPH 

  West Bengal invites bids for jute park 

  Coochbehar (WB), February 4, 2009 (PTI): West Bengal Industrial Development Corporation (WBIDC) has called for Expression of Interest (EOI) from diversified jute product manufacturers for two jute parks in Cooch Behar and Murshidabad. The WBIDC in a press advertisement issued here yesterday offered land to diversified products manufacturers within the Cooch Behar Jute Parks Infrastructure Limited (CJPIL) and another jute park in Murshidabad. 
  CJPIL is a special purpose vehicle for creation, expansion and development of an integrated jute park in Cooch Behar to develop the project and provide all basic infrastructure and common facilities as may be required for setting up and operation of the proposed jute park, WBIDC sources said. Welcoming the development, secretary of Cooch Behar District Industrialists' Welfare Association Depak Mundra said, "at last Cooch Behar was going to have the much-awaited Jute Park. It will be beneficial for the jute growers of this region. It may also boost up the industrialisation process in this district, which is to improve the socio-economic situation too". 
  The proposed jute park would be situated at Chakchaka Industrial Estate on around 30-acre land. It is at a distance of 4-kilometre from Cooch Behar town and one-kilometre from New Cooch Behar Railway 
Station. In August last year, the state cottage and small-scale industries minister Manabendra Mukherjee had announced the setting up of the proposed jute park in the district. 

  Bengal government bats for organic farming 

  KOLKATA,30 Jan 2009 : The West Bengal government plans to bring at least 20% of the state’s arable land under organic cultivation by the end of the 11th Plan,said Naren De, West Bengal’s minister for agriculture & consumer affairs.   Participating in a seminar on “Agriculture in West Bengal - an instrument of growth’ — the minister on Wednesday said the state government has requested the Centre to give subsidy for producing bio-fertilisers in line with what is being given to chemical fertilisers. The seminar was organised by Merchants’ Chamber of Commerce. “As in most cases, farmers produce bio-fertilisers for their own consumption. So it will greatly benefit farmers if they are being given an additional subsidy to produce bio-fertilisers,” 
Mr De said. Apart from farmers, NGOs are also engaged in manufacturing of biofertilisers. 
  West Bengal has taken several measures to improve crop productivity and cropping intensity. In view of limited available land for cultivation, the state government plans to increase the land area for cultivation by about 2 lakh hectares, converting the cultivable waste available in Purulia, Bankura and West Midnapore districts. He further informed the gathering that the Pulses Research Centre at Baharampur, has recently developed a new variety of pulse. Christened ‘Nirmal’, the new breed of ‘Khesari dal’ is devoid of any toxic effect. He also referred to the development of a new technology for producing newsprint out of jute. “The new technology will help jute farmers of the state, which accounts for 50% of the world jute production,” said the minister. 
Source:The Economic Times 

  Textiles Investment to touch Rs. 1,50,600 crore 

  Amritsar, January 22, 2009: Shri Shankersinh Vaghela, Union Minister of Textiles,  said that the biggest achievement of the Government was to turnaround the Indian Textiles from the Sunset to  Sunrise sector. He said this while interacting with the media at Amritsar today. He said that the rationalization of fiscal duties undertaken during the last four and a half years has provided a level playing field in all segments of the textiles industry, resulting in the holistic growth of the industry. The Minister said that the textiles sector has witnessed a spurt in investment during the last four and a half  years, which were Rs.1,08,531 crore between 2004-08 and  are expected to touch Rs. 1,50,600 crore by 2012. This enhanced investment will generate 17.37 million jobs by 2012. 
   Shri Vaghela said that the revival of textiles sector  has come after years of low growth. Post ndependence,  restrictions such as the reservation of knitted and  woven products to the small scale units, prevented  growth, as the SSI units did not have the financial  capacity for investment in expansion. Even the economic iberalization of 1991 and the dismantling of the quota system in 2005 failed to spur the industry into the growth mode. The real impetus to the sector came with x the  dereservation of small scale sector, and rationalization of duties, implementation of the Scheme for Integrated Textile Park (SITP) and a renewed focus on Technology Upgradation Fund Scheme (TUFS) to help modernize production, said Vaghela. 
   The Minister informed that under the UPA Government the  Jute Sector has acquired a renewed impetus. The first National Jute Policy was announced in April 2005, and  the Jute Technology Mission, at an estimated cost of Rs 355.55 crore, was launched in February 2007. The Minister said that we propose to set up 10 jute parks by 2012, of which four parks have already been shortlised,  three in West Bengal and one in Rajasthan. The National  Jute Board Bill, which will synergize the functioning of  various bodies engaged in jute sector, has been recently passed by the Parliament, said Shri Vaghela. 

  Handicraft and Jute and Fair in the Burdwan Utsav 

  BURDWAN, January 14, 2009: Artisans, craftsmen from different states and the districts of West Bengal participated in the Burdwan Utsav and the Krishnasayar Utsav this year both organised in Burdwan town had a disheartening experience owing to drop in sales. Artists from the National Centre for Jute Diversification (NCJD) also participate in the fair every year and are the principal players. Mrs Renu Aich, an NDJD official said: “The response we received this time is disappointing. However, we will continue to participate in the fair as we want to promote jute products.” Each year, an average of 1.5 lakh people visit the ten-day Krishnasayar Utsav.

  Govt. may relax jute packaging norms 
 New Delhi, January 9, 2009 (PTI): Concerned over inadequate availability of jute bags, the Food Ministry has requested the Textile Ministry to relax packaging norms so that the government's foodgrain procurement programme is not affected. Under the Jute Packaging Materials (JPM) Act, only jute bags have to be used for foodgrains and sugar, except in certain cases like export consignment and for the commodity weighing over 100 kg. The Food Ministry has pointed out that it requires a minimum of 3.5 lakh bales of jute, which is currently unavailable, while, sources said that even if norms are relaxed it would not be at the cost of jute farmers. 
  Under the JPM Act, the Textile Ministry is allowed to relax up to 20 per cent in the 100 per cent mandatory packaging rules for foodgrain and sugar. However, value-added sugar, export consignment, small pack of less than 25 kg and bulk bags exceeding 100 kg have been given exemption from the mandatory packaging rules. Sugar manufactures are not facing any shortage of jute bags, an official of a mill in Uttar Pradesh said. "We don't have any problem till now," he said. 
  The need for relaxing the norm has come into light as the Centre prepares for procurement of wheat from April after a record purchase of 226 lakh tonnes last year. India is expected to see a bumper wheat crop this year as well. Besides, the procurement of rice is also in full swing. According to latest data, the Centre has procured 169.39 lakh tonnes of rice in the on-going season since purchases began from October 1, 2008. The procurement has shot up by 19 per cent against 142.12 lakh tonnes in the year-ago period.
 

  

    
                                                          
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