Lok Sabha Question No. 3350 (UNSTARRED), answered on 2019-07-12
Subject: Crisis in Jute Industry
Ministry: TEXTILES
Asked by: Khagen Murmu, Raja Amareshwara Naik, Sukanta Majumdar, Vinod Kumar Sonkar

## LOK SABHA UNSTARRED QUESTION NO.3350 TO BE ANSWERED ON 12.07.2019

## CRISIS IN JUTE INDUSTRY

## 3350.   SHRI KHAGEN MURMU:

SHRI RAJA AMERESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI VINOD KUMAR SONKAR:

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

- (a) whether the Government is aware of crisis in Jute Industry including closure of Jute Mills, loss of jobs, intense competition and cheap imports from Bangladesh;
- (b) if so, the total quantity and value of jute/jute products produced and imported/exported during the last three years, product/country-wise;
- (c) whether  the  Government  has  received  any  representations  from  some  jute  mill owners requesting intervention in the matter;
- (d) if  so,  the  details  thereof  and  the  other  steps  being  taken  by  the  Government  for welfare of jute workers and development of Jute Industry in West Bengal;
- (e) the  details  of  schemes  being  implemented  by  the  Government  to  increase  the production and export of jute;
- (f) the steps taken by the Government to resolve the problems of jute producers in the country; and
- (g) the details of jute mills modernised by the Government during the said period, mill and State-wise?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (c): There is no report of crisis in jute industry including closure of jute mills, loss of  jobs,  intense  competition  and  cheap  imports  from  Bangladesh.  In-fact,  during  the  last two  years  10  jute  twine  mills  have  re-opened  in  Andhra  Pradesh  benefitting  20,000

workmen  directly  and  indirectly.  With  a  view  to  protect  domestic  jute  industry,  antidumping duty on import of jute goods from Bangladesh and Nepal has been imposed w.e.f. 5 th   January,  2017.  The  details  of  jute/jute  products  produced  and  imported/exported during the last three years is at Annexure-A. (d)  to  (f) :        Government  of  India  is  implementing  various  schemes  for  welfare  of  jute workers,  improving  productivity  and  quality  of  jute  and  overall  development  of  jute industry in jute growing states. The details of various schemes implemented for upliftment of jute sector are at Annexure-B.

(g) :      National Jute Board (NJB) is implementing the Incentive scheme for Acquisition of Plants and Machinery (ISAPM) for modernization in Jute mills & JDP units. During 2014-15 to 2018-19, NJB has released capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units.

| Year                              |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19* |
|-----------------------------------|-----------|-----------|-----------|-----------|------------|
| Assistance/Subsidy (Rs. In lakhs) |    362.18 |    355.57 |   1739.21 |   1427.23 |       1087 |
| No. of Mills / unit               |     18    |     22    |     39    |     52    |         27 |

Details of jute mills those who participated under this scheme and availed assistance are given at Annexure C.

## Production of Jute Goods

|         |   Hessian |   Sacking |   Carpet Backing Cloth |   Yarn |   Others |   Total |
|---------|-----------|-----------|------------------------|--------|----------|---------|
| 2016-17 |     178.6 |     871.6 |                    3   |   93.3 |     45.8 |  1142.3 |
| 2017-18 |     173.3 |     902.7 |                    1.9 |   51.7 |     48.5 |  1178.1 |
| 2018-19 |     141   |     846.5 |                    0.5 |   45.2 |     47.1 |  1080.3 |

Source: Indian Jute Mills Association

## Total Exports of Jute goods

## Annexure-A

Qty: '000 M. Tons

Qty: 000' M. Tons

Value: Rs. / Crore

| Year      | Hessian   | Hessian   | Sacking   | Sacking   | Yarn   | Yarn   | Others   | Others   | JDPs   | Total   | Total   |
|-----------|-----------|-----------|-----------|-----------|--------|--------|----------|----------|--------|---------|---------|
|           | Qty.      | Value     | Qty.      | Value     | Qty.   | Value  | Qty.     | Value    | Value  | Qty.    | Value   |
| 2016 - 17 | 78.6      | 930.18    | 46.6      | 411.80    | 9.2    | 72.76  | 4.1      | 68.50    | 590.95 | 140.7   | 2074.20 |
| 2017 - 18 | 86.8      | 917.24    | 44.8      | 407.19    | 16.9   | 130.19 | 4.2      | 72.43    | 631.49 | 155.3   | 2158.56 |
| 2018 - 19 | 64.1      | 802.69    | 37.0      | 432.91    | 13.6   | 109.42 | 7.0      | 112.75   | 815.50 | 121.7   | 2273.27 |

Source: DGCI&S, Kolkata

## Total Imports of Jute goods (from Bangladesh)

Qty: 000' M. Tons

Value: Rs. / Crore

| Year      | Hessian   | Hessian   | Sacking   | Sacking   | Yarn   | Yarn   | Others   | Others   | JDPs   | Total   | Total   |
|-----------|-----------|-----------|-----------|-----------|--------|--------|----------|----------|--------|---------|---------|
|           | Qty.      | Value     | Qty.      | Value     | Qty.   | Value  | Qty.     | Value    | Value  | Qty.    | Value   |
| 2016 - 17 | 5.9       | 57.56     | 43.8      | 307.43    | 79.1   | 502.43 | 9.7      | 54.17    | 10.02  | 140.2   | 931.60  |
| 2017 - 18 | 11.9      | 122.37    | 45.4      | 413.73    | 50.0   | 310.94 | 7.5      | 23.82    | 9.43   | 115.4   | 880.28  |
| 2018 - 19 | 18.1      | 184.40    | 54.1      | 432.66    | 49.2   | 292.13 | 5.8      | 30.39    | 12.34  | 108.3   | 951.92  |

Source: DGCI&S, Kolkata

## Exports of jute goods to Top 20 Countries

Value: Rs. / Crore

|     | 2016-17                 | 2016-17   | 2016-17   | 2017-18                 | 2017-18   | 2017-18   | 2018-19                 | 2018-19   | 2018-19   |
|-----|-------------------------|-----------|-----------|-------------------------|-----------|-----------|-------------------------|-----------|-----------|
| Sl. | Country                 | Value     | %         | Country                 | Value     | %         | Country                 | Value     | %         |
| 1   | U S A                   | 415.31    | 20        | U S A                   | 454.07    | 21        | U S A                   | 492.73    | 22        |
| 2   | GHANA                   | 168.62    | 8         | GHANA                   | 183.87    | 9         | GHANA                   | 258.38    | 11        |
| 3   | U K                     | 155.92    | 8         | U K                     | 141.81    | 7         | U K                     | 158.82    | 7         |
| 4   | GERMANY                 | 99.81     | 5         | COTE D' IVOIRE          | 107.53    | 5         | NETHERLAND              | 114.62    | 5         |
| 5   | NETHERLAND              | 98.37     | 5         | GERMANY                 | 99.75     | 5         | AUSTRALIA               | 98.70     | 4         |
| 6   | AUSTRALIA               | 82.40     | 4         | NEPAL                   | 92.59     | 4         | GERMANY                 | 97.19     | 4         |
| 7   | SAUDI ARAB              | 71.74     | 3         | NETHERLAND              | 82.63     | 4         | COTE D' IVOIRE          | 81.15     | 4         |
| 8   | COTE D' IVOIRE          | 68.05     | 3         | SAUDI ARAB              | 78.49     | 4         | SPAIN                   | 76.63     | 3         |
| 9   | SUDAN                   | 56.18     | 3         | AUSTRALIA               | 48.37     | 2         | INDONESIA               | 52.82     | 2         |
| 10  | U ARAB EMTS             | 51.10     | 2         | U ARAB EMTS             | 47.17     | 2         | NEWZEALAND              | 52.69     | 2         |
| 11  | CANADA                  | 42.95     | 2         | TURKEY                  | 42.14     | 2         | SAUDI ARAB              | 52.13     | 2         |
| 12  | ITALY                   | 42.43     | 2         | INDONESIA               | 39.57     | 2         | FRANCE                  | 47.59     | 2         |
| 13  | EGYPT A RP              | 39.23     | 2         | CANADA                  | 38.63     | 2         | ITALY                   | 39.99     | 2         |
| 14  | SPAIN                   | 34.72     | 2         | BELGIUM                 | 37.46     | 2         | U ARAB EMTS             | 39.67     | 2         |
| 15  | NEWZEALAND              | 33.38     | 2         | ITALY                   | 37.38     | 2         | BELGIUM                 | 36.93     | 2         |
| 16  | BELGIUM                 | 32.94     | 2         | SPAIN                   | 36.70     | 2         | JAPAN                   | 34.06     | 1         |
| 17  | TANZANIA REP            | 32.61     | 2         | EGYPT A RP              | 35.90     | 2         | CANADA                  | 33.15     | 1         |
| 18  | TURKEY                  | 32.51     | 2         | TANZANIA REP            | 31.81     | 1         | SUDAN                   | 32.70     | 1         |
| 19  | JAPAN                   | 28.51     | 1         | NEWZEALAND              | 31.46     | 1         | TANZANIA REP            | 32.70     | 1         |
| 20  | FRANCE                  | 27.45     | 1         | FRANCE                  | 30.68     | 1         | PERU                    | 19.82     | 1         |
|     | Total of 20 countries   | 1614.23   | 79        | Total of 20 countries   | 1698.01   | 80        | Total of 20 countries   | 1852.47   | 79        |
|     | Total of All jute goods | 2074.20   |           | Total of All jute goods | 2158.56   |           | Total of All jute goods | 2273.27   |           |

Source: DGCI&S, Kolkata

Steps/Schemes for welfare of jute workers, development of jute industry, resolving problems of jute producers and increasing productivity and export of jute:

## (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) MSP operation in raw jute:-

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.

## (iii) Workers' Welfare Scheme:

## (a)Swachhatta Abhiyan - Sulabh Sauchalaya:

NJB provides assistance to the jute mills 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.

## (iv)  JUTE -ICARE (Jute : Improved Cultivation and Advanced Retting Exercise):

National Jute Board (NJB) in association with Jute Corporation of India Ltd (JCI) and Central Research Institute for Jute and Allied Fibres (CRIJAF), Ministry of Agriculture is implementing  an  scheme  for  welfare  of  Jute  farmers  namely  Jute  -ICARE  (Improved Cultivation  and  Advanced  Retting  Exercise)  for  the  last  four  years  in  a  phased  manner covering  69  blocks  under  jute  growing  states  till  2018-19.    Through  this  scheme,  the farmers  have  been  encouraged  to  grow  jute  by  using  certified  seeds,  adopting  scientific technique in jute cultivation and retting to produce quality jute and increase productivity and to reduce the cost of jute production for the jute farmers.

## (v) Incentive Scheme for Acquisition of Plant & Machinery:

Keeping in mind the need to modernise the jute mills by increasing their productivity and to replace the old machines by new and technologically advanced machines; National Jute Board  (NJB)  has  been  implementing  schemes  for  modernization  of  jute  industry.  The scheme  has  been  instrumental  in  bringing  new  investment  to  the  industry.  The  ISAPM scheme has been launched in 2013 with an incentive @20% of the cost of machineries to Jute mills and 30% to the MSME -JDP units. During 2014-15 to 2018-19, capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units has been released. (vi) 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. (vii) Design Development Scheme - NJB Jute Design Cell at NID: A  Jute  Design  Cell  for  development  of  Jute  Shopping  Bags  and  Lifestyle  Accessorieshas been  set  upat  the  Innovative  Centre  for  Natural  Fibres  (ICNF)  of  National  Institute  of Design (NID), Ahmedabad. (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. (ix) Jute Raw Material Bank (JRMB) Scheme The scheme has been designed to make jute raw material available to the small and tiny artisans / entrepreneurs locally at mill gate price, suiting to the present requirement and sustainability of the decentralized JDP sector in the country.

## (x)  Export Market Development Assistance Scheme -

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 fairs under the scheme.

## (xi) 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. 347.90 lakh has been provided to 80 beneficiaries/entrepreneurs under this scheme.

## Annexure-C

## State/Mill-wise disbursement of Incentive under ISAPM Scheme

| Sl. No.     | Name of the Jute Mill                                   | Incentive Amount released   | Incentive Amount released   | Incentive Amount released   | Total (Rs.)   |
|-------------|---------------------------------------------------------|-----------------------------|-----------------------------|-----------------------------|---------------|
| Sl. No.     | Name of the Jute Mill                                   | 2016-17 (Rs.)               | 2017-18 (Rs.)               | 2018-19 (Rs.)               | Total (Rs.)   |
| West Bengal | West Bengal                                             | West Bengal                 | West Bengal                 | West Bengal                 | West Bengal   |
| 1           | Hooghly Infrastructure Pvt. Ltd. (Hukumchand Jute Mill) | 6,139,800                   | 2,029,000                   | 153,000                     | 8,321,800     |
| 2           | Dalhousie Jute Company                                  | 880,000                     | 7,628,666                   | 3,258,000                   | 11,766,666    |
| 3           | Kanknarrah Co. Ltd.                                     | 826,952                     | 6,477,827                   |                             | 7,304,779     |
| 4           | Alliance Mills (Lessees) Ltd.                           | 6,687,000                   | 944,000                     | 4,567,000                   | 12,198,000    |
| 5           | Aditya Translink (P) Ltd. (Samnuggur North)             | 1,444,000                   | 236,000                     |                             | 1,680,000     |
| 6           | Jagatdal Jute & Industries Ltd.                         | 4,974,385                   |                             | 5,107,000                   | 10,081,385    |
| 7           | RDB Textiles Limited (Victoria Jute Mill)               | 1,165,200                   | 1,665,000                   | 6,249,400                   | 9,079,600     |
| 8           | Vijai Shree Ltd. (Fort William Jute)                    | 890,000                     | 2,985,000                   | 2,346,000                   | 6,221,000     |
| 9           | Ashoka Exports                                          | 270,520                     | 386,400                     | 697,435                     | 1,354,355     |
| 10          | Ludlow Jute & Specialities Ltd.                         | 2,030,920                   | 2,576,602                   |                             | 4,607,522     |
| 11          | Cheviot Company Ltd.                                    | 13,761,506                  |                             | 211,500                     | 13,973,006    |
| 12          | The Angus Company Ltd.                                  | 697,000                     | 225,600                     |                             | 922,600       |
| 13          | The Naihati Jute Mills Co. Ltd.                         | 2,830,400                   | 14,988,000                  |                             | 17,818,400    |
| 14          | Caledonian Jute & Industries Ltd.                       | 2,771,000                   | 2,928,600                   | 2,359,700                   | 8,059,300     |
| 15          | Bowreah Jute Mill Private Ltd.                          | 16,704,400                  | 2,104,800                   |                             | 18,809,200    |
| 16          | Jankalyan Vinimay Pvt. Ltd. (Megna Jute Mills)          | 807,000                     | 1,780,000                   |                             | 2,587,000     |

|   17 | Maheswari Jute Spinners Pvt. Ltd.     | 4,898,000   | 1,609,600   |           | 6,507,600   |
|------|---------------------------------------|-------------|-------------|-----------|-------------|
|   18 | The Empire Jute Company Ltd.          | 832,000     |             |           | 832,000     |
|   19 | Reliance Jute Mills (Int.) Ltd.       | 4,447,400   | 5,284,993   | 4,986,000 | 14,718,393  |
|   20 | Gloster Limited                       | 14,898,096  | 4,082,800   |           | 18,980,896  |
|   21 | Kamarhatty Company Ltd.               | 4,379,000   |             |           | 4,379,000   |
|   22 | Premchand Jute & Industries Pvt. Ltd. | 8,184,171   |             |           | 8,184,171   |
|   23 | Kamakshi Jute Industries Ltd.         | 3,973,444   |             |           | 3,973,444   |
|   24 | Birla Corporoation                    |             | 25,000,000  |           | 25,000,000  |
|   25 | Sree Durga Fibre Products             |             | 820,000     | 820,000   | 1,640,000   |
|   26 | Uma Spinners Pvt. Ltd.                |             | 1,020,000   |           | 1,020,000   |
|   27 | Agarpara Jute Mills Ltd.              |             | 5,856,187   |           | 5,856,187   |
|   28 | Richie Bags & Fashion Pvt. Ltd.       |             | 92,824      |           | 92,824      |
|   29 | Trand Vyappar Ltd.                    |             | 1,115,000   | 110,000   | 1,225,000   |
|   30 | G.D.Cement Pvt. Ltd.                  |             | 360,000     |           | 360,000     |
|   31 | OSB Overseas Pvt. Ltd.                |             | 146,700     |           | 146,700     |
|   32 | CMTP Exports Pvt. Ltd.                |             | 400,500     |           | 400,500     |
|   33 | Kariwala Industries Ltd.              |             | 1,930,324   |           | 1,930,324   |
|   34 | The Baranagore Jute Factory Plc.      |             | 4,408,200   |           | 4,408,200   |
|   35 | Ganges Jute Pvt. Ltd.                 |             | 10,022,724  |           | 10,022,724  |
|   36 | ECO Jute Pvt. Ltd.                    |             |             | 1,545,400 | 1,545,400   |
|   37 | Tepcon Int. (I) Ltd.                  |             |             | 1,686,000 | 1,686,000   |
|   38 | Goyeal Merchants Pvt. Ltd.            |             |             | 1,388,000 | 1,388,000   |
|   39 | The Hooghly Mills Co. Ltd.            |             |             | 27,000    | 27,000      |
|   40 | Budge Budge Co. Ltd.                  |             |             | 9,887,200 | 9,887,200   |
|   41 | Ashis Bags &                          |             |             |           |             |

|                | Fashions Pvt. Ltd.                       |                |                | 571,200        | 571,200        |
|----------------|------------------------------------------|----------------|----------------|----------------|----------------|
| 42             | Earth Bags Exports Pvt. Ltd.             |                |                | 2,464,422      | 2,464,422      |
| 43             | Auckland Int. Ltd.                       |                |                | 1,666,800      | 1,666,800      |
| 44             | Mahadeo Jute & Industries Ltd.           |                |                | 352,000        | 352,000        |
| 45             | Patra Jute Mill Pvt. Ltd.                |                |                | 410,000        | 410,000        |
|                | Total : (A)                              | 104,492,194    | 109,105,347    | 50,863,057     | 264,460,598    |
| Andhra Pradesh | Andhra Pradesh                           | Andhra Pradesh | Andhra Pradesh | Andhra Pradesh | Andhra Pradesh |
| 1              | Andhra Pradesh Fibres Limited            | 178,000        |                |                | 178,000        |
| 2              | Sri Sitarama Lakshmi Jute Mills (P) Ltd. | 1,328,258      |                |                | 1,328,258      |
| 3              | Rajam Poly Packs Ltd.                    | 360,000        |                |                | 360,000        |
|                | Total : (B)                              | 1,866,258      |                |                | 1,866,258      |
| Assam          | Assam                                    | Assam          | Assam          | Assam          | Assam          |
| 1              | Prakash Jute Industries Pvt. Ltd.        |                |                | 2,230,000      | 2,230,000      |
|                | Total : (C)                              |                |                | 2,230,000      | 2,230,000      |
|                | Grand Total : (A) + (B) + ( C)           |                |                |                | 268,556,856    |

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