Overhauling jute production to tap new markets

Quality improvement in jute cultivation in India continues to take a backseat, with 90% of the estimated 40 lakh jute farmers in India still waiting to be registered under the Jute–ICARE (Improved Cultivation and Advanced Retting Exercise) Scheme even after the ninth phase of the scheme. Ironically, the scheme was launched to impart training to registered jute farmers to adopt better agronomic practices to boost production of quality jute raw materials. The opportunities to tap larger domestic and export markets of jute products have been missed due to administrative apathy to implement the scheme and other programmes aimed at strengthening the jute sector. Apart from providing livelihoods to lakhs of farmers, the jute industry also provides employment to several lakh jute workers. Naturally, expansion of jute farming and processing can generate huge employment and livelihood opportunities in major jute-growing states like West Bengal, Assam, Tripura, Bihar, Andhra Pradesh and Odisha. Observations made by the parliamentary standing committee on Labour, Textile and Skill Development lay bare policy gaps resulting in stagnation in the promising sector. The committee found that their recommendations to formulate a comprehensive policy to revive closed jute mills and address the issue of a shortage of skilled workers continue to be yet to be implemented, which speaks volumes about the sector not getting due prominence from the government. The committee took strong exception to the casual approach by the ministry and expressed the view that consultations with all the stakeholders should have been initiated long back and a roadmap prepared for skill development of jute workers to reinvigorate the jute industry and equip the rural youths with skills for better livelihoods. The reluctance on the part of the government to expand the jute sector can be attributed to the fact that the total purchase of jute packaging materials by various state government agencies for procurement of food grains currently constitutes about 80.9% of the total production of jute goods. The Jute Packaging Material (Compulsory Use in Packaging Commodities) Act, 1987 (JPM Act), mandates compulsory use of jute packaging material (100% for food grain and 20% for sugar packaging) in the supply and distribution of certain commodities in the interests of production of raw jute and jute packaging material, which has ensured sustainability of the jute industry and its production. The committee observed that the compliance of the mandate in respect of the procurement of sugar packaging at the sugar mills continues to violate it. Apart from the minimum support price to farmers for raw jute, the mandatory purchase of packaging materials by the procurement agencies and the mills creates a guaranteed market. Expansion of the area under jute cultivation and increasing procurement by the Jute Corporation of India to offset price volatility will only lead to an increase in the government’s subsidy bill, which partly explains the government apathy in implementing various schemes. Empowering jute farmers and processing units to tap the competitive markets of jute products is the pragmatic option to overcome the challenge. Being an environment-friendly product, the demand for jute packaging materials in the textile industry has gone up. The prohibition of plastic carry bags or prohibited thickness has pushed the demand for alternative packaging materials, including jute bags. So long as the traditional jute farmers remain dependent on government procurement for food grains, they will not be able to expand the area due to the limited budget spent for payment of subsidies. If jute processing units are empowered to diversify their products, it will lead to an increase in demand for an increase in supply of raw jute by growers. A modern jute processing unit to cater to the new market demand will require an adequate number of skilled workers for the production of diversified jute products. The quality of raw jute will matter for the sustainability of the production of diversified goods, and schemes like Jute I-CARE play the crucial role in quality improvement in raw jute. A very low percentage of registration of traditional jute growers under the scheme implies that the majority of them remain dependent on traditional practices which have less demand in the emerging competitive markets of diversified jute products. The revival of closed jute mills will also remain unachieved, as markets will not place demand on the mills which do not have the capacity to produce quality and diversified jute products made from quality jute fibre. Another critical observation made by the parliamentary panel brings out a crucial gap in tapping the new opportunities. It pointed out that the National Jute Policy for the development and promotion of the Jute Sector was declared 20 years ago and the country needs a new jute policy. As the new jute policy has been included in the draft National Textile Policy, the government implementing the committee’s recommendation for expeditious formulation of the new national textile policy is crucial for the much-needed transformation in the jute sector to increase the sustainability of jute growing and processing in India.