INDIA’S JUTE SECTOR
The jute sector has
been playing an important role in the economy of the country.
About four million families are dependent on cultivation of jute
and mesta. About two lakh workers are engaged in the jute industry.
Two successive bumper crops of raw jute including mesta during
the last two years have had a dampening impact on the raw jute
market. Price support operations carried out by the Jute Corporation
of India along with its agent co-operative societies, however,
arrested the decline in prices below the Minimum Support Price
(MSP) level.
The export market
of jute goods has displayed a notable turnaround. As against the
export target of Rs. 1000 crore for 2002-03, the achievement during
April-November, 2002 was of Rs. 539.65 crore as compared to Rs.
418.37 crore during the corresponding period of the previous year,
registering a 29 per cent increase.
Many initiatives
have been taken in the recent past for the benefit of the jute
sector. A capital goods subsidy scheme was launched on July 5,
2002 with the Jute Manufactures Development Council (JMDC) as
the implementing agency. This scheme would remain in operation
for three years, A scheme called the Jute Entrepreneurs Assistance
(Capital Subsidy) Scheme (JEACSS) being implemented by the National
Centre for Jute Diversification (NCJD) has been formulated to
provide technological and financial assistance to entrepreneurs
interested in setting up commercial units for manufacture or processing,
value added, marketable jute diversified commodities. The benefits
of Duty Entitlement Pass Book (DEPB) Scheme have been extended
to jute products, The existing External Market Assistance (EMA)
Scheme has been validated for one more year with effect from April
1, 2002. The scheme was amended to provide assistance to the EOU
(Export Oriented Units) exporters for export of jute yarn and
twine @ two per cent with effect from August 2, 2002 on par with
the DEPB benefits available to non-EOUs for export of yarn or
twines.(PIB Features)
