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Exploit benefit of TUF scheme - Maran to jute sector
13 Oct '09
2 min read
Though jute and jute products are enjoying growth in global demands, its production has not increased accordingly, since paddy is coming out as a more lucrative harvest for jute producers.
Even if the current market price for raw jute is Rs. 2,000-2,200 per quintal, the harvesters are switching over to paddy production as they can generate more income through it.
This is creating an acute gap between the demand and supply of jute, said Mr. AK Barua, Marketing Manager Jute Corporation of India (JCI). Demand of various procurement agencies for raw jute has increased to 2.4-2.5 million bales per year, which was around 1.5 million bales before 2 years.
Currently the minimum support price (MSP) for raw jute is just Rs 1,375 per quintal, which is much lower than the existing market price. A proposal to increase this price to Rs. 1,675 per quintal has been sent to the Cabinet by the Textile Ministry.
Textile Ministry has forwarded this proposal after receiving several representations from the state government mentioning the inability of jute industry in demand fulfillment. Change in harvest patterns made the industry to support MSP hike for raw jute, which is likely to become operational by January 2010.
Demand for jute and jute products is rising across the world due to the awareness among people regarding the benefits of the products made from eco-friendly materials such as jute, said Mr. TK Mandal, Deputy Director, office of the jute commissioner.
Around 70-75 percent of total jute production of the country is consumed domestically, however, according to the Textile Minister Mr. Dayanidhi Maran, markets for jute should also be developed in foreign countries as it's a right time for jute fiber to cash on the global trend in support of natural fibre.
He added that the stakeholders need to take efforts, such as modernizing work process and exploring new markets, to make jute products price competitive. Jute producers have not exploited the benefits of the technology up-gradation funds scheme, he added further.
Even if the current market price for raw jute is Rs. 2,000-2,200 per quintal, the harvesters are switching over to paddy production as they can generate more income through it.
This is creating an acute gap between the demand and supply of jute, said Mr. AK Barua, Marketing Manager Jute Corporation of India (JCI). Demand of various procurement agencies for raw jute has increased to 2.4-2.5 million bales per year, which was around 1.5 million bales before 2 years.
Currently the minimum support price (MSP) for raw jute is just Rs 1,375 per quintal, which is much lower than the existing market price. A proposal to increase this price to Rs. 1,675 per quintal has been sent to the Cabinet by the Textile Ministry.
Textile Ministry has forwarded this proposal after receiving several representations from the state government mentioning the inability of jute industry in demand fulfillment. Change in harvest patterns made the industry to support MSP hike for raw jute, which is likely to become operational by January 2010.
Demand for jute and jute products is rising across the world due to the awareness among people regarding the benefits of the products made from eco-friendly materials such as jute, said Mr. TK Mandal, Deputy Director, office of the jute commissioner.
Around 70-75 percent of total jute production of the country is consumed domestically, however, according to the Textile Minister Mr. Dayanidhi Maran, markets for jute should also be developed in foreign countries as it's a right time for jute fiber to cash on the global trend in support of natural fibre.
He added that the stakeholders need to take efforts, such as modernizing work process and exploring new markets, to make jute products price competitive. Jute producers have not exploited the benefits of the technology up-gradation funds scheme, he added further.
Fibre2fashion News Desk - India
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