Lok Sabha Question No. 1519 (UNSTARRED), answered on 2018-07-26
Subject: Closed Jute Mills
Ministry: TEXTILES
Asked by: TARIQ ANWAR

1519.  SHRI TARIQ ANWAR:

Will the Minister of Textiles वस्त्र मंरी

be pleased to state:

- (a)         whether  the  Government/National  Jute  Manufactures  Corporation  Limited (NJMC) have initiated steps for the revival of closed jute mills in the country;
- (b)        if so, the details thereof;
- (c)         whether  the  Government  has  received  any  suggestion  from  NITI  Aayog  for revival of closed RBHM Jute mill in Katihar, Bihar; and
- (d)       if so, the details thereof ?

## उत्तर

## ANSWER वस्त्र राज्य मंरी (श्री अजय टम्टा)

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

(a) & (b): At  present,  75  composite  jute  mills  are  functional  in  the  Country. Government has taken a large number of measures for supporting the jute manufacturing units and 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 this account amounts to Rs. 6500 crores.
2. 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.
3. iii)         Incentive Scheme for Acquisition of Plants and Machinery (ISAPM): Government of  India  has  launched  ISAPM  for  Jute  Industry  and  Jute  Diversified  Products

## LOK SABHA UNSTARRED QUESTION NO.1519 TO BE ANSWERED ON 26.07.2018

## CLOSED JUTE MILLS

Manufacturing  Units,  with  effect  from  1st October  2013.  The  basic  aim  of  this scheme  is  to  facilitate  modernization  in  existing  and  new  jute  mills  and  upgradation 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 up to 2 lakh MT of additional demand for jute goods to be met by the Indian Jute industry.

A large  number  of mills are under  private  management. 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.  As  regards,  National  Jute  Manufactures  Corporation  Limited  (NJMC), this Public Sector Undertaking is among those identified by NITIAayog for closure.

## (c):

- No, Madam.

## (d):

- Does not arise.
- **********