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G. Srinivasan

Mr Rana said the revocation of patent order would provide ``a great relief to the Indian jute industry'', which is already reeling under industrial and business problems due to highly competitive global market and charging of royalty by Geohess would have rendered the price of the Indian hessian highly uncompetitive in the global market.

NEW DELHI, Sept. 20

JUTE textile exports from the country would definitely surpass the Rs 1,000-crore target set for the current fiscal, in view of the pick-up in demand for Indian jute geo-textiles and also in view of the significant victory wrested by the Jute Manufacturers Development Council (JMDC) on the patent right for use of hessian as a waste fill cover.

Disclosing this to Business Line here, the Union Textile Minister, Mr Kashiram Rana, said that the European Patent Office (EPO), in its recent verdict, has revoked the patent right claimed by Geohess (the UK) Ltd for use of hessian as a waste fill cover.

``Had the patent claim not been contested, a royalty to the tune of 65 per cent could have been imposed by the said party for the aforesaid use of hessian in countries covered by the European Patent application, viz., Australia, Belgium, Switzerland, Germany, Denmark, Spain, France, the UK, Greece, Ireland, Italy, the Netherlands, Liechtenstein, Portugal and Sweden'', Mr Rana said.

Recounting the importance of the significant win, Mr Rana said the revocation of patent order would provide ``a great relief to the Indian jute industry'', which is already reeling under industrial and business problems due to highly competitive global market and charging of royalty by Geohess would have rendered the price of the Indian hessian highly uncompetitive in the global market.

Mr Rana said the revocation of the patent right would also open scope for huge export market for hessian as there is a rising trend in geo-textile consumption since 1970 from 10.2 million sq metre to 1,400 million sq. m in 2000 with the potential markets, including the US, Western Europe, Japan and Australia.

Second, he said, the overall European market for greenery development is of the order of 400 million sq. m out of which jute geo-textiles could clinch a share of at least 50 million sq. m. The present day municipal and state requirement/preferences of biodegradable products vis-a-vis synthetics such as covers for waste management would add to such prospective market, he added.

The Textile Minister said this, coupled with the recent announcement of duty entitlement pass book (DEPB) rates to jute products, would help in pushing up jute goods exports this year. He said that the Cabinet proposal to phase out progressively the jute reservation order for compulsory packaging in foodgrains and sugar, subject to review at the end of the third year, has been upheld by the Calcutta High Court, which was challenged by the Indian Jute Manufacturers Association (IJMA). He said that the price of jute in Kolkata was now ruling more than the minimum support price (MSP) giving better return to the growers for cultivating the crop.

Mr Rana said that this year's export target of textiles at $13.5 billion, against $12 billion last year, could be achieved, given the trends so far.

He said that readymade garments, which constitute a major chunk of exports to quota countries, registered a 12 per cent rise in value terms at $1724.9 million during April-August. In August, exports of garments to restricted countries amounted to 81.9 million pieces valued at $331.9 million, against 71 million pieces valued at $285.5 million, showing ``a jump of 16 per cent in value terms'', Mr Rana said.

Asked about the turnaround strategy for the NTC mills, the Minister said that with the Maharashra Government clarifying the points raised by the BIFR, a strategy is being implemented in regard to sale of surplus lands for payment of voluntary retirement scheme for the closed mills and modernising the viable ones.

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