Lok Sabha Question No. 2078 (UNSTARRED), answered on 2020-09-23
Subject: Measures to Modernise Jute Mills
Ministry: TEXTILES
Asked by: Mohammad Jawed, Ramya  Haridas

## LOK SABHA UNSTARRED QUESTION NO. 2078 TO BE ANSWERED ON 23.09.2020

## MEASURES TO MODERNISE JUTE MILLS

## 2078.   DR. MOHAMMAD JAWED: MS. RAMYA HARIDAS:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) whether jute cultivation has declined over past decades due to low price of jute and lack of jute mills in the country and if so, the details thereof, State/UTwise, particularly Bihar;

(b) whether the Government proposes to fix MSP for jute and open new jute mills in the jute growing areas of  the  country,  if  so,  the  details  thereof,  State/UT-wise  including  Bihar  and  West  Bengal  and  if  not,  the reasons therefor;

- (c) whether the Government has proposed to reopen the defunct jute mills in the country, if so, the details thereof, State-wise particularly in Bihar and West Bengal and if not, the reasons therefor;
- (d) whether it is a fact that not a single new jute goods manufacturing unit has been set up during the last five years and the current year and if so, the reasons therefor;
- (e) whether the jute industry is not able to fully utilize its production capacity due to lack of demand of jute in the country and if so, the details thereof; and

(f) whether it is also a fact that there is an urgent need to modernise the jute mills set up in the country and if so, the details thereof along with the steps taken/ being taken by the Government in this regard and if not, the reasons therefor?

## उत्तर

## ANSWER वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): The price of raw jute has mostly been ruling over the Minimum Support Price, therefore, price of jute and demand by the jute mills may not be a factor in the decline in cultivated area of jute. The slight decline in the  cultivation  area  has  been  compensated  by  the  increased  productivity  with  the  use  of  modern  agronomic practices introduced by Government. Also, Jute Corporation of India has been mandated to purchase raw jute from the farmers at Minimum Support Price (MSP) whenever the price of raw jute goes below the MSP.

(b) & (c): MSP for raw jute is fixed by Government every year to protect the interest of the jute farmers. The MSP of raw jute in year 2012-13 was Rs. 2200 per quintal which has now increased to Rs. 4225 in year 2020-21.  The  opening  and  closing  of  jute  mills  is  a  cyclical  process  which  depends  on  various  factors  of production such as productivity, trade unionism, raw material supply etc. The jute mills are in private control. The  Government  is  however  ensuring  that  there  is  sufficient  demand  of  jute  bags  by  mandating  100% reservation for packaging of foodgrains in jute bags thereby creating a conducive environment for opening up of new jute mills in the country.

(d) & (e): Several jute manufacturing units including one composite jute mill have come up in different parts  of  the  country  as  a  result  of  the  conducive  environment  being  provided  by  the  Government.  With  the provision of 100% mandatory packaging of foodgrains in jute bags, there is no dearth in the demand of jute bags. In fact, the demand of jute bags is more than the capacity of jute mills due to which the Government has to resort to dilution in the provision of 100% mandatory reservation of jute bags for packaging of foodgrains.

(f): To  modernise  the  jute  mills,  the  Government  is  already  implementing  the  Incentive  Scheme  for Acquisition  of  Plant  &  Machinery  (ISAPM).  Under  the  scheme,  efforts  are  being  made  to  increase  the productivity  of  the  jute  mills  by  providing  capital  subsidy  to  replace  the  old  machines  with  new  and technologically advanced machines. During 2014-15 to 2018-19, capital subsidy amounting to Rs. 49.71 crores has been released to modernise jute mills and JDP units.