Budget allocation for Indian jute industry slashed by 22%

According to the Indian budget document, the government had allocated funds of ₹142 crore for current fiscal 2023-24. But it was revised down to ₹103 crore. The budget for next fiscal has been further cut down to ₹80 crore. The government had allocated ₹57.91 crore (actual) for fiscal 2022-23.

A deeper look on the budget document explained that the finance minister has drastically slashed budget for Scheme for Development of Jute Sector. She had initially allocated ₹100 crore for the scheme for the current fiscal, but it was revised and cut down to ₹75 crore. The government further slashed the amount to ₹50 crore for the next fiscal. In fiscal 2022-23, finance minister had allocated ₹30 crore for the scheme. The scheme helps training/development, market promotion and development activities of National Jute Board. The expenses were earlier being met from payment against Jute Cess Collection.

However, budget allocation for subsidy to Jute Corporation of India (JCI) is slightly increased to ₹30 crore for the next fiscal from ₹28 crore in current fiscal. The government had originally allocated ₹42 crore for current fiscal in the last budget, which was around 50 per cent higher than the actual budget of ₹27.91 crore for fiscal 2022-23.

The subsidy is provided to JCI towards market operation. JCI conducts jute procurement activities to ensure Minimum Support Price (MSP) for the farmers.

Fibre2Fashion News Desk (KUL)