The Hindu Business Line : Ministry may link jute packaging order directly with modernisation

IN an effort to modernise the ailing jute industry, the Union Ministry of Textiles is contemplating linking the quota of B Twill jute sackings directly with the modernisation of a particular jute mill.

This was announced by Mr S. Majumdar, Jute Commissioner, at a seminar organised by the Indian Jute Mills Association (IJMA) on industrial relations. The deliberations of the meeting will be taken into account for preparing the comprehensive jute policy.

According to him, the Union Government has already announced several schemes for the modernisation of the jute industry but there are hardly any takers.

He added that while one section of the industry has already modernised and can be compared with any other textile unit of the world, the other section is yet to take up any modernisation work. "So, we cannot treat both these sections at the same level. There should some incentive for the proactive jute units who have modernised. We are contemplating linking B Twill quota directly with modernisation," Mr Majumdar said.

The B Twill jute bags are generally used for packaging food grains. The sugar industry consumes A Twill jute bags. Orders for B Twill jute bags are placed either by Food Corporation of India or by procuring agencies of the individual state governments.

All these orders are routed through the Jute Commissioner's office. At present, Indian jute industry produces approximately 10 lakh tonnes on jute sackings, of which approximately 50 per cent is B Twill jute bags.

The Jute Commissioner was, however, non-committal on the actual date for linking the B Twill quota with modernisation.

The total fund allocation for the proposed Jute Technological Mission is likely to be scaled down. Initially, it was fixed at Rs 465 crore but it might be reduced to Rs 325 crore. Here too the reason is the lackadaisical attitude of the jute mill owners towards modernisation. Earlier, it was thought that Rs 800 crore would be spent on the modernisation of the jute industry, of which 15 per cent would be subsidy.

Now, the Ministry officials feel that such a big amount is unlikely to be invested by the jute industrialists. They felt that the total cost of modernisation would be around Rs 400 crore or below. So, the fund allocation might be reduced too.

Mr Majumdar said final fund figure of Jute Technology Mission is currently been worked out. He said the Planning Commission has already given an in-principle approval. The final nod is likely to come after May.

However, regarding modernisation, he assured the jute industry that the current capital subsidy scheme operated by the Jute Manufactures Development Corporation would continue. "We would continue with it as long as the TUF (Textile Upgradation Fund) is there. TUF is likely to be continued till 2007," he said.

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