Budget allocation for Indian jute industry slashed by 22%

02 Feb 24 2 min read

Insights

  • In the fiscal 2024-25 Interim Budget, India's finance minister Nirmala Sitharaman has cut the allocation for jute industries development by 22.33 per cent to ₹80 crore from ₹103 crore in 2023-24.
  • While subsidy for Jute Corporation of India has been increased slightly to ₹30 crore, funding for Scheme for Development of Jute Sector was reduced to ₹50 crore.
The allocation for the development of jute industries has been slashed by 22.33 per cent for the coming fiscal 2024-25. In her Interim Budget presented on Thursday, finance minister Nirmala Sitharaman reduced the allocation from ₹103 crore in the ongoing fiscal to ₹80 crore for the next fiscal.

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.

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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)

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