Lok Sabha Question No. 4338 (UNSTARRED), answered on 2019-12-13
Subject: Jute Processing
Ministry: TEXTILES
Asked by: Sunil Kumar Pintu, Shriniwas Dadasaheb Patil, Sougata Ray, Subhash Ramrao Bhamre, Sumalatha Ambareesh, Supriya Sadanand Sule, Kuldeep Rai Sharma, Sunil Dattatray Tatkare, Amol Ramsing Kolhe

## LOK SABHA UNSTARRED QUESTION NO. 4338 TO BE ANSWERED ON 13.12.2019

## JUTE PROCESSING

## 4338.   SHRI SUNIL KUMAR PINTU:

SHRI SHRINIWAS PATIL: PROF. SAUGATA RAY: DR. SUBHASH RAMRAO BHAMRE: SHRIMATI SUMALATHA AMBAREESH: SHRIMATI SUPRIYA SULE: SHRI KULDEEP RAI SHARMA: SHRI SUNIL DATTATRAY TATKARE: DR. AMOL RAMSING KOLHE:

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

- (a) the  number  of  jute  processing  industries  functioning  in  the  country,  along  with  their production,  State-wise  along  with  schemes  formulated  by  the  Government  to  promote  jute industry;
- (b) whether the export of the jute products from the country has declined as a result of which jute industries have been affected;
- (c) if  so,  the  details  of  jute  products  exported  during  each  of  the  last  three  years  and  the current  year,  industry/country  wise  along  with  the  foreign  exchange  earned  therefrom  and  the reasons for this decline;
- (d) the  steps  taken  by  the  Government to provide  financial  assistance to jute industries in order to enable them to compete in the global market;
- (e) whether the Government has devised any mechanism to ensure the maximum prices for the produce of jute farmers in view of the surplus jute production in the country;
- (f) the other steps taken by the Government to promote jute industry in the country;
- (g) the  problem  faced  by  the  Government  to  boost  the  export  of  jute  products  and  the corrective steps taken in this regard;
- (h) the measures taken/being taken to promote jute industry and to revive closed traditional jute textile mills in the country particularly in the States like Bihar and Jharkhand;
- (i) whether the Government has any proposal to procure the entire jute produced by farmers in the country; and
- (j) whether  the  Government  has  waived  off/giving  subsidy  and  other  loans  to  textile yarn/jute related products and other product manufacturers in the textile industry and their units?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): There are 75 operational jute mills in the country based on the returns submitted to the Office of Jute Commissioner. State wise information of the mills including their production is given below:

| 2018-19 (Apr- Mar)   | 2018-19 (Apr- Mar)   | (Qty. in '000 M.T)   | (Qty. in '000 M.T)   | (Qty. in '000 M.T)   | (Qty. in '000 M.T)                               |
|----------------------|----------------------|----------------------|----------------------|----------------------|--------------------------------------------------|
|                      | Hessian              | Sacking              | Others               | TOTA L               | No. of Operational Jute Mills Submitting Returns |
| Andhra Pradesh       | 0.0                  | 30.0                 | 4.4                  | 34.4                 | 7                                                |
| Uttar Pradesh        | 2.8                  | 1.7                  | 1.1                  | 5.6                  | 1                                                |
| Bihar                | 0.0                  | 0.0                  | 0.0                  | 0.0                  | 1                                                |
| Odisha               | 0.0                  | 5.6                  | 5.0                  | 10.6                 | 2                                                |
| Assam                | 0.1                  | 10.3                 | 0.0                  | 10.4                 | 2                                                |
| Chhattisgarh         | 0.0                  | 11.8                 | 0.0                  | 11.8                 | 1                                                |
| Tripura              | 0.0                  | 0.0                  | 0.0                  | 0.0                  | 1                                                |
| West Bengal          | 144.7                | 852.9                | 90.8                 | 1088.4               | 60                                               |
| TOTAL                | 147.6                | 912.3                | 101.3                | 1161.2               | 75                                               |

The schemes formulated by the government for the promotion of jute sector are given below:

## (i) Mandatory Packaging in Jute Materials:-

Under  the  Jute  Packaging  Materials  (Compulsory  Use  in  Packing  Commodities)  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  100%  of  food grains and a minimum of 20% of sugar are to be compulsorily packed in jute sacking.

## (ii)  Jute  Industry  Modernization  Scheme:  Incentive  Scheme  for  Acquisition  of  Plants  & Machinery (ISAPM):

The Incentive Scheme for Acquisition of Plant & Machinery (ISAPM) for modernization in Jute mills & JDP units is implemented to increase the productivity of the jute machinery and making  them  efficient  by  replacing  the  old  machines  by  new  and  technologically  advanced machines.  During  2014-15  to  2018-19,  capital  subsidy  amounting  to  Rs.  49.71  crores  to  jute mills and JDP units has been released.

## (iii) Jute Farmers' Welfare Scheme: JUTE -ICARE:

A  Jute-ICARE  (Improved  Cultivation  and  Advanced  Retting  Exercise)  project  is  being implemented  since  the  last  four  years  with  an  objective  to  introduce  package  of  scientific technique of Jute cultivation and retting exercises for improving fibre quality and productivity and reducing the cost of jute production and to increase income of jute farmers. The scheme has covered 69 blocks comprising land area of 98,897 hectares and around 2 lakh farmers by year 2018-19.

## (iv) Workers' Welfare Scheme:

- (A) Swachhatta Abhiyan - Sulabh Sauchalaya : Assistance to the jute mills is provided for improvement of sanitation, health facilities and working conditions of jute mill workers. The rate  of  assistance  is  @90%  of  actual  expenses  subject  to  maximum  of  Rs.  60.00

lakh (per mill/annum). Under this scheme, 1365 Toilet units have been constructed in 46 Jute Mills from 2014-15 to 2018-19.

- (B) Scholarship  Scheme  for  the  girl  children  of  the  workers  of  jute  mills,  JDP-MSMEs: NJB provides Scholarship / Incentive support to the girl children of the workers of Jute Mills /  JDP  MSME  units  on  passing out Secondary and Higher secondary examinations. Scholarship / Incentive of Rs. 1133.05 lakh have been given to 17,722 girl children  of  Jute  Mills  /  JDP  MSME  workers  for  being  successful  in  Secondary  and Higher secondary examinations from 2014-15 to 2018-19.

## (v) Export Market Development Assistance Scheme:

The  Export  Market  Development  Assistance  (EMDA)  Scheme  facilitates  registered manufacturers  and  exporters  of  jute  products  to  participate  in  international  fairs  and  business delegation abroad  for  export  promotion  of  lifestyle  and  other  JDPs  and  boost  exports.  During 2014-15 to 2018-19, an amount of Rs 17.21 crores has been disbursed to registered jute exporters for participation in International Jute fairs under the scheme.

## (vi) Retail Outlet of Jute Diversified Products and Bulk Supply Scheme:

Retail  Outlet  scheme  supports  supply  chain  and  bulk  supply  of  JDPs  by  the  jute entrepreneurs for selective and mass consumption. During 2014-15 to 2018-19, an amount of Rs. 3.48 crores has been provided to 80 beneficiaries/entrepreneurs under this scheme.

## (vii) Design Development Scheme :NJB Jute Design Cell at NID:

A Jute Design Cell for development of Jute Shopping Bags and Lifestyle Accessories has also been set up at the Innovative Centre for Natural Fibres (ICNF) of NID (National Institute of Design),  Ahmedabad  whose  prime  objective  is  to  develop  newer  and  innovative  Products through  design  and  technology  intervention  for  value  addition  and  better  market  at  home  and abroad.  NID  has  already  developed  more  than  100  woven,  dyed,  finished  samples  for  jute lifestyle accessories and has showcased low cost jute carry bags as an alternative against plastic bags, collapsible jute bags etc. Jute bags namely fashion, Tote Bags, Foldable hand bags (natural & dyed).

## (viii)  Jute Integrated Development Scheme (JIDS)

JID Scheme aims at setting up local units and agencies at distant locations around the country through collaboration with bonafide bodies to carry out various activities. JID agencies act as a facilitator for providing Basic, Advance and Design Development training programmes and rendering the backward and forward linkages to the existing and potential entrepreneurs at grass-root  levels    mainly    on    technology    application    and  design  /  product  development  and disseminations.  JID  agencies  are  also  the    prime  source  for  market  facilitation  to  the  Jute Diversified Products (JDP) units, SHGs, WSHGs, NGOs, thus help in  creating and sustaining the  production  units  thereby  generating  employment  to  thousands  of  people  in  the  rural  areas through  entrepreneurship  development  and  the  setting  up  of  Self  Help  Groups,  particularly Women  Self  Help  Groups  (WHSGs).  During  2016-17  to  2018-19,  1060  trainees  have  been imparted trainings for production of various jute diversified products.

## (ix) Jute Raw Material Bank (JRMB) Scheme

The scheme aims at accelerating the pace of JDP activities in the country by catering to need of MSME-JDP units for production of JDPs so that jute raw materials are  supplied to them regularly at mill gate price and to help them manufacture high value products, both for domestic and international markets. This is a sustainable process to increase production base for JDPs and to  provide  employments to rural masses particularly the women for which selected competent organizations/agencies provide backward and forward linkages. The JRMBs act as a complement to the training & skill development efforts being made by the JID agencies in their respective regions  to  develop  new  WSHGs,  artisans  &  entrepreneurs  in  addition  to  serving  the  existing WSHGs, artisans & entrepreneurs.

## (x) Market Promotion Support:

Market Promotion support is provided to the jute artisans, entrepreneurs, weavers, NGOs, Women Self Help Groups (WSHGs) for selling, marketing and promotion of their products in India and abroad.  The fairs organized by NJB are means of livelihood to these groups of people. Some of the prominent events among others were - IITF, Delhi, Surajkund Mela, Tex Trends, Delhi, Taj Mahotsav, Lucknow  Mahotsav,  Shilpgram  Udaipur,  Giftex, Mumbai,  Indian Handicrafts and  gift  fair,  Greater  Noida  etc  where  National  Jute  Board  organise  and  facilitate participation  of  jute  units  for  promotion  of  jute  products.  The  Market  Promotion  Support beneficiaries are JDP Units, Jute Mills, WSHGs etc. The Market promotion fairs/exhibitions are organised  and  participated  in  throughout  the  country.  NJB  also  provides  export  promotion supports  to  the  jute exporters  and  facilitate participation in International  fairs,  Business delegation, Buyer Seller Meet (BSM) for boosting exports.

(b) & (c): Export  trend  of  jute  products  from  India  shows  an  increasing  trend.  Given below in the table, the export performance of jute goods during last 3 years:

Qty : 000' M.Ton and Value :Rs./Crore

| Product                                                                                                                         | 2016-17   | 2016-17           | 2017-18   | 2017-18           | 2018-19   | 2018-19           |
|---------------------------------------------------------------------------------------------------------------------------------|-----------|-------------------|-----------|-------------------|-----------|-------------------|
|                                                                                                                                 | Qty       | Value             | Qty       | Value             | Qty       | Value             |
| Hessian                                                                                                                         | 78.56     | 930.18            | 86.80     | 917.24            | 64.11     | 802.70            |
| Sacking                                                                                                                         | 46.63     | 411.81            | 44.77     | 407.20            | 37.09     | 432.91            |
| Yarn                                                                                                                            | 9.26      | 72.76             | 16.98     | 130.19            | 13.61     | 109.42            |
| Jute Diversified Products (JDPs)viz. Floor Coverings, Hand/Shopping Bags, Wall Hangings, Gift Articles, Decorative Fabrics etc. |           | 590.95            |           | 631.49            |           | 815.51            |
| Total incl. Others                                                                                                              | 140.68    | 2,074.21          | 152.79    | 2,158.56          | 121.68    | 2,273.27          |
| Equivalent Total US$ Million                                                                                                    |           | (US$ 309 million) |           | (US$ 335 million) |           | (US$ 325 million) |

Source : DGCI&S, Kolkata

Exports  of  jute  goods  to  Top  20  countries  during  last  3  years  with  export  value  is enclosed at Annexure -I .

(d): A number of schemes have been implemented to provide assistance to jute industries in order to enable them to compete in the global market. The details of the scheme are given below:

- (i) Export Market Development Assistance Scheme (EMDA): It is being implemented to facilitate  registered  manufacturers  and  exporters  of  jute  products  to  participate  in international  fairs  and  business  delegation  abroad  for  export  promotion  of  lifestyle and  other  JDPs  and  boost  exports.  The  registered  jute  exporters  are  entitled  for reimbursement of the expenditure on space rent +decoration upto maximum 50% and economy class  Airfare  (for  2  passengers)  +  Accommodation  up  to  maximum  50% subject to maximum of Rs 3.75 lakh (being 50% of total expenditure of Rs 7.50 lakh). During  2014-15  to  2018-19,  an  amount  of  Rs  1720  lakhs  has  been  disbursed  to

registered jute exporters for participation in International fairs for export, promotion of  Jute  Products  under  the  scheme.  Export  of  jute  products  are  also  covered  for benefit  under  Duty  Drawback  Scheme  and  other  market  linked  export  promotion schemes of  Ministry  of  Commerce,  Govt.  of  India.  The  schemes  facilitate  the  jute exporters to negotiate the business deals with international buyers at reasonable price.

- (ii)  Incentive  Scheme  for  Acquisition  of  Plants  &  Machinery  (ISAPM):  The  Incentive Scheme for Acquisition of Plant & Machinery (ISAPM) for modernization in Jute mills &  JDP  units  is  implemented  to  increase  the  productivity  of  the  jute  machinery  and making  them  efficient  by  replacing  the  old  machines  by  new  and  technologically advanced  machines.  During  2014-15  to  2018-19,  capital  subsidy  amounting  to  Rs. 49.71 crores to jute mills and JDP units has been released.

(e) & (i): Whenever  the  market  price  of  raw  jute  falls  below  a  certain  level,  the  Jute Corporation of India (JCI) procures raw jute without any quantity ceiling 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.  CACP  takes  the  view  of  all  the stakeholders and factor in all the contributors catering to inflation, before giving the recommendation of MSP for every year.

## (f): Information has already been furnished in reply (a) to (e) .

(g): Due to cost advantage for jute mills in Bangladesh along with export subsidy and other incentives  by  the  Bangladesh  government  along  with  better  quality  of  raw  jute  available  in Bangladesh,  Bangladesh  is  able  to  out  price  India  in  most  of  the  foreign  markets.  However, Government of India has been taking all possible measures to boost jute industry in the country by  implementing  various  schemes  for  development  and  promotion  of  jute  sector.  Further,  for computing the Allocation Ratios for the jute mills for distribution of government orders of B. Twill sacking each year, incentive is given to mills for greater product diversification with higher dispatch value in domestic/foreign markets.

(h): Details of steps / schemes formulated by the Government to promote jute industry have already been enumerated in the above reply. The issue of re-opening of closed mills is a subject being handled by the respective states. However, to protect/revive the jute industries, Government  of  India  has  decided  to  continue  Jute  Packaging  Material  (Compulsory  Use  in Packing Commodities) Act, 1987 keeping in view the interest of raw jute growers and workers involved in the jute industry.  This Act has provided uninterrupted market for jute bags. Also, the Government  of  India  has  imposed  Anti-Dumping  Duty  to  protect  Indian  Jute  growers  and farmers. After the imposition of Anti-dumping duty w.e.f. 5.1.2017, an additional demand of 2 lakh Metric Tonnes has been generated in the domestic market for the jute industry, which has led to the reopening of more than 10 Jute Twine Mills located in Andhra Pradesh, benefitting 20,000 workmen directly and indirectly.

(j): The information related to jute sector has already been enumerated in the above points. In regards to Handloom Sector, a 90% subsidy is provided for procurement of upgraded looms and accessories under Hathkargha Samvardhan Sahayata Yojna for better quality and productivity of handloom  products.  10%  subsidy  is  provided  on  hank  yarn  which  is  applicable  on  cotton, domestic silk, wool and linen yarn with quantity caps. 100% subsidy in case of SC/ST, Women and  BPL  weavers  is  provided  for  construction  of  work  shed  and  75%  subsidy  in  the  case  of weavers above poverty line. The Government is also providing reimbursement of 75% of fees towards  admission  to  NIOS/IGNOU  courses  in  case  of  SC,  ST,  BPL  and  Women  learners belonging to handloom weaver's families.

Annexure-I

## EXPORT OF ALL JUTE GOODS TO TOP 20 IMPORTING COUNTRIES (VALUE WISE)

Value: Rs./Million

|         | 2016 - 2017                        | 2016 - 2017         | 2016 - 2017   | 2017 - 2018                        | 2017 - 2018         | 2017 - 2018   | 2018 - 2019                        | 2018 - 2019         | 2018 - 2019   |
|---------|------------------------------------|---------------------|---------------|------------------------------------|---------------------|---------------|------------------------------------|---------------------|---------------|
| Sl. No. | Country                            | Value               | %             | Country                            | Value               | %             | Country                            | Value               | %             |
| 1       | U S A                              | 4,153.10            | 20            | U S A                              | 4,540.69            | 21            | U S A                              | 4,927.31            | 22            |
| 2       | GHANA                              | 1,686.18            | 8             | GHANA                              | 1,838.75            | 9             | GHANA                              | 2,583.83            | 11            |
| 3       | U K                                | 1,559.22            | 8             | U K COTE D'                        | 1,418.15            | 7             | U K NETHERLA                       | 1,588.23            | 7             |
| 4       | GERMANY                            | 998.10              | 5             | IVOIRE                             | 1,075.29            | 5             | ND                                 | 1,146.20            | 5             |
| 5       | NETHERLAND                         | 983.70              | 5             | GERMANY                            | 997.48              | 5             | AUSTRALIA                          | 987.03              | 4             |
| 6       | AUSTRALIA                          | 824.01              | 4             | NEPAL NETHERLA                     | 925.93              | 4             | GERMANY COTE D'                    | 971.86              | 4             |
| 7       | SAUDI ARAB COTE D'                 | 717.41              | 3             | ND SAUDI                           | 826.29              | 4             | IVOIRE                             | 811.50              | 4             |
| 8       | IVOIRE                             | 680.53              | 3             | ARAB                               | 784.99              | 4             | SPAIN                              | 766.32              | 3             |
| 9       | SUDAN                              | 561.77              | 3             | AUSTRALI A U ARAB                  | 483.70              | 2             | INDONESIA NEW                      | 528.16              | 2             |
| 10      | U ARAB EMTS                        | 510.98              | 2             | EMTS                               | 471.74              | 2             | ZEALAND SAUDI                      | 526.86              | 2             |
| 11      | CANADA                             | 429.47              | 2             | TURKEY INDONESI                    | 421.44              | 2             | ARAB                               | 521.35              | 2             |
| 12      | ITALY                              | 424.30              | 2             | A                                  | 395.69              | 2             | FRANCE                             | 475.86              | 2             |
| 13      | EGYPT A RP                         | 392.27              | 2             | CANADA                             | 386.32              | 2             | ITALY                              | 399.94              | 2             |
| 14      | SPAIN NEW                          | 347.25              | 2             | BELGIUM                            | 374.65              | 2             | U ARAB EMTS                        | 396.69              | 2             |
| 15      | ZEALAND                            | 333.83              | 2             | ITALY                              | 373.85              | 2             | BELGIUM                            | 369.32              | 2             |
| 16      | BELGIUM TANZANIA                   | 329.45              | 2             | SPAIN EGYPT A                      | 367.05              | 2             | JAPAN                              | 340.60              | 1             |
| 17      | REP                                | 326.11              | 2             | RP                                 | 359.05              | 2             | CANADA                             | 331.50              | 1             |
| 18      | TURKEY                             | 325.12              | 2             | TANZANIA REP NEW                   | 318.10              | 1             | SUDAN                              | 327.04              | 1             |
| 19      | JAPAN                              | 285.09              | 1             | ZEALAND                            | 314.63              | 1             | TANZANIA REP                       | 326.96              | 1             |
| 20      | FRANCE                             | 274.47              | 1             | FRANCE                             | 306.80              | 1             | PERU                               | 198.21              | 1             |
|         | Total of 20 Countries Total Export | 16,142.36 20,742.07 | 79            | Total of 20 Countries Total Export | 16,980.59 21,585.00 | 80            | Total of 20 Countries Total Export | 18,524.77 22,732.72 | 79            |

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