Jute Products Manufacturers Hails Government's Support

There have been two big news stories for the jute products manufacturers which can bring a ray of hope for the otherwise ailing jute industry.

The first one is that the Cabinet Committee on Economic Affairs (CEA) decided to reverse the Union textile ministry's proposal for 25 per cent dilution in mandatory use of jute bags for packaging of food-grain and sugar. This is for the second year in a row that CCEA has turned down the proposal for dilution of the Jute Packaging Materials Act (JPMA). According to JPMA of 1987, it is mandatory for the government procurement agencies to pack foodgrain and sugar in jute bags.

Industry insiders think of this as a pre poll bonanza for the West Bengal. Jute Products Manufacturers hail this decision as the jute industry is labour-intensive and engages around 400,000 workers directly, while creating indirect employment for nearly 4 million farmers.

The second big story comes from Andhra Pradesh where in three jute parks under public-private participation have been sanctioned for the state. News reports further adds that an integrated jute park would come up at Sabbavaram, near Visakhapatnam on an extent of 200 acres with Rs.100-crore investment and two jute diversified product parks at Guntur and at Ibrahimpatnam in Ranga Reddy district under Jute Technology Mission.

Agencies add that the National Jute Development Board would release Rs. 7.5 crores towards creating infrastructure facilities in addition to the state government's share. It is expected that the parks would generate employment for up to 25,000 jobless youths.

Jute is the most important vegetable fibre second only to cotton; not only for cultivation, but also for various uses like in the sackings, carpets, wrapping fabrics (cotton bale) etc.

With the ever increasing concern over deforestation due to the war cry over global warming, jute is now being positioned as a viable alternative for the pulp and paper products. A noticeable trend has been the rise in demand of Jute bags in various promotional activities and campaigns at the corporate level.

As of now jute products manufacturers are breathing a sigh of relief mainly due to the increased support from the government and the gradual increase in demand of jute products worldwide. It would be interesting to see how long would the jute industry manage to flourish in the times to comes amidst tough competition from other sectors.

Jute Products Manufacturers Hails Government's Support

By: Export Industry Analyst

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