Lok Sabha Question No. 289 (UNSTARRED), answered on 2018-07-19
Subject: Revival of Closed Jute Mills
Ministry: TEXTILES
Asked by: KAMLA DEVI PATLE

LOK SABHA UNSTARRED QUESTION NO.289 TO BE ANSWERED ON 19.07.2018

## REVIVAL OF CLOSED JUTE MILLS

## 289. SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a)    whethera number of jute mills in various States including Chhattisgarh have been closed or are on the verge of closure;
- (b)   if  so,  the  details  thereof,  State-wise/location-wise  along  with  the  reasons therefor; and
- (c)    the steps taken/proposed to be taken by the Government for the revival of these closed mills?

## उत्तर ANSWER

## वस्त्र मंरी ( श्री अज )

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a) & (b): As on date, 75 composite jute mills are functioning in various States of the country, including Chhattisgarh. Closing and reopening of jute mills is a cyclical process which  depends  on  various  factors  of  production  such  as  low  productivity,  trade unionism, raw material supply, fall in demand etc. The details of closed mills in various States are given in the Annexure .

(c): Government has been taking a large number of measures for supporting the jute manufacturing units and for strengthening the jute sector. These include:-

- (i) To  ensure  consistent  demand  for  jute  mills,  under  the  Jute  Packaging Materials (Compulsory  Use  in  Packing  Commodities)  [JPM  Act], 1987, Government  specifies  the  commodities  and  the  extent  to  which  they  are mandatorily required to be packed in Jute Packaging Materials. At present, a minimum of 90% of food grains and a minimum of 20% of sugar are to be compulsorily packed in jute sacking. On an average, the annual Government support to jute industry on the account amounts to Rs. 6500 crores.
- (ii) Whenever the market price of raw jute falls  below a certain level, the Jute Corporation  of  India  (JCI)  procures  raw  jute  at  Minimum  Support  Price (MSP), fixed on the basis of  recommendation  of  the  commission  for Agricultural  Cost  and  Prices  (CACP)  from  jute  growers  to  safeguard  their interest.  Government  of  India  has  sanctioned  Rs.  204  crores  for  four  years starting 2014-15 to enable JCI to be in readiness for MSP operations.Further, a fund of Rs.100 crores has been approved for 2018-19 and 2019-20.

(iii) Incentive Scheme for Acquisition of Plants and Machinery (ISAPM): Government  of  India  has launched  ISAPM  for  Jute Industry and  Jute Diversified Products Manufacturing Units, with effect from 1 st October 2013. The  basic  aim  of  this  scheme  is  to  facilitate  modernization  in  existing  and new jute mills and up- gradation of technology in existing jute mills and to provide assistance to a large number of entrepreneurs to manufacture value added biodegradable Jute Diversified Products (JDP) as well as for modernization and up-gradation of technology.

- (iv) Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise): This pilot project launched in 2015 is aimed at addressing the difficulties faced by the  jute  cultivators  by  providing  them  certified  seeds  at  subsidized  rates, seed  drills  to  facilitate  line  sowing,  nail-weeders   to  carry  out  periodic weeding and by popularising several newly  developed retting technologies under water limiting conditions. This has resulted in increased returns to jute farmers.
- (v) The National Jute Board implements various schemes for market development, workers welfare, promotion of diversification and exports.
- (vi) The  Government  issued  a  notification  on  5th  January,  2017  imposing Definitive Anti-Dumping Duty on jute goods originating from Bangladesh and Nepal. Based on the current level of imports, the Industry has estimated that this has created scope for upto 2 lakh MT of additional demand for jute goods to be met by the Indian Jute industry.

## Annexure

## Details of closed mills in various States.

|   S.No. | Closed Mills   | State   |   S.No. | Closed Mills   | State       |
|---------|----------------|---------|---------|----------------|-------------|
|       1 | Gouripur       | WB      |      12 | Chitavalsah    | A.P.        |
|       2 | Alexandra      | WB      |      13 | Eastcoast      | A.P         |
|       3 | National       | WB      |      14 | Aruna          | A.P         |
|       4 | Union          | WB      |      15 | Bobbili        | A.P         |
|       5 | Soorah         | WB      |      16 | Sri Bajrang    | A.P         |
|       6 | Khardah        | W.B     |      17 | Rameshwara     | Bihar       |
|       7 | Jai Jute       | W.B     |      18 | RBHM           | Bihar       |
|       8 | Kanoria        | W.B     |      19 | Kanpur         | UP          |
|       9 | Kinnision      | W.B     |      20 | J.K Jute       | U.P         |
|      10 | India          | W.B     |      21 | Mohan          | Chhatisgarh |
|      11 | Gondalpara     | W.B     |      22 | Konarak        | Odisha      |

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