The jute sector has been playing an important role in the economy of the country in general and the eastern region in particular. Apart from contribution to the national exchequer from exports and through taxes and levies, the jute industry provides sizeable employment in farms and industries. About four million families, most of them small and marginal, are engaged in the cultivation of jute and mesta and about two lakh workers are employed in the jute industry.

The first seven months of 2000-2001 has turned out to be by and large favourable for the jute sector. With a good crop currently estimated by Jute Advisory Board at around 95 lakh bales and the carryover stock of around 9.5 lakh bales from 1999-00 season the raw jute supply position is comfortable. As a result, the industry has faced no problem in procuring raw jute at a reasonable price for uninterrupted production of jute goods to cope with the demand. Jute goods market continued to display mixed trends with prices of all goods showing fluctuations. The market is expected to rule steady in the coming month, as all foodgrains procuring agencies have finalised their advance requirement of a quantity of 7.00 lakh bales of B.Twill bags for the forthcoming Rabi season and began procuring such bags from Nov’2000 in addition to demand from sugar sector which is likely to begin from Dec’2000.

PRODUCTION OF JUTE GOODS
Production of jute goods during 1999-2000(April/March) slightly decreased by 0.4% to 15.90 lakh tonnes as against 15.96 lakh tonnes in 1998-99. This fall in production was attributable to lower production of CBC and “other goods” goods due to sluggish demand.
Production during 2000-01(April/November) also recorded an increase of 2.6% to reach 10.57 lakh tonnes from 10.30 lakh tonnes during the same period of last year. However, if the current trend of production is maintained, production of jute goods is likely to be around 16.00 lakh tonnes in 2000-2001 (April/March).

DOMESTIC OFF-TAKE OF JUTE GOODS AND RELATED DEVELOPMENTS
Internal consumption of jute goods during 1999-2000 registered a marginal growth by 1.6% to 14.27 lakh tonnes from 14.04 lakh tonnes during the previous season. This was attributable to a rise in demand of jute bags on Govt. account for packing foodgrains. Internal off-take during 2000-01(April/November) has also increased by 2.4% to 9.04 lakh tonnes from 8.83 lakh tonnes during the corresponding period of last year. According to the Govt’s decision taken in line with the ILO convention regarding maximum permissible weight to be carried by an adult, all state foodgrain procuring agencies including FCI have placed Orders for 50-Kg. bags for the coming rabi season.
After analysing the entire issues relating to future requirements of jute bags for packing different specified end-user sectors covered by the JPM Act, supply scenario for jute goods, etc. the Standing Advisory Committee recommended 20% production of urea to be packed in jute bags compulsorily, apart from stipulations of 100% foodgrains and sugar to be packed in jute bags. Accordingly an Order was issued by the Government on 25-10-2000 and this order is valid upto 30-6-2001.
The performance in using jute bags by foodgrains and sugar sectors as per stipulations of the Reservation Order has been satisfactory. Overall Performance in using jute bags by Fertilizer (Urea) sector has also been, by and large in order.

EXPORT OF JUTE GOODS AND RELATED DEVELOPMENTS
Export of jute goods during 1999-2000(April/March) declined to 1.69 lakh tons valued at Rs.571.53 crores from 1.95 lakh tons valued at Rs.628.92 crores during 1998-99. The decline in overall export was attributable to competition from cheaper and lighter synthetics substitutes and sharp reduction in selling prices by Bangladesh exporters.
Export of jute goods during 2000-01(April/November) has, however, increased to 1.21 lakh tons valued at Rs. 418.00 crores from 1.15 lakh tons valued at Rs.378.30 crores during the same period of last year. The increase in export is due mainly to rise in major exportable items like Hessian and Sacking.

For promoting export of jute goods, Government have taken various measures which include the following :-
(a) the External Market Assistance Scheme operated by JMDC was restructured w.e.f. 01.04.2000 and confirmed for a period of one year for giving added thrust on export of value added and diversified jute products.
(b) special thrust is being provided to re-orientation of R & D activities with special emphasis on enlargement of production base for diversified and value added jute products.
(c) acceleration of export promotion programme by JMDC.
(d) introduction of Technology Upgradation Fund Scheme (TUFS) for textiles and jute industry.

SUPPORT PRICES FOR RAW JUTE
Minimum Support Prices are being fixed by the Government every year on the basis of recommendations of the Commission for Agricultural Costs and Prices. The minimum support prices for TD-5 grade of jute grown in Assam has been raised from Rs.750.00 per quintal for 1999-2000 season to Rs.785.00 per quintal for 2000-01 season. The gradewise price differentials have been fixed in such a manner as to motivate farmers to improve quality outturn of their produce. The corresponding minimum support prices for all grades of jute and mesta for various up-country markets in different states for the current season have, accordingly, been revised upward and widely published for information of all concerned.

INDUSTRIAL AND LABOUR SCENARIO
There are 73 jute mills in the country, of which 59 mills are situated in West Bengal, 3 each in Bihar and UP, 4 in Andhra Pradesh and 1 each in Assam, Orissa, Tripura and MP. At the end of October, 2000 the total number of looms installed in the industry stood at 43,989 and installed spindles at 552,420 for fine yarn and 84,848 for coarse yarn. These jute mills employ approximately 2.00 lakh workers. The maximum achievable spinning capacity in the organised mill sector is estimated to be of the order of 19.00 lakh tonnes per annum. As on 13.11.2000, 7 mills are lying closed affecting 18,340 workers.
Table 11.1
Estimates of supply and distribution position of raw jute--- Qty : in lakh bales

			Estimated (1999-00)	Estimated (2000-01)
A.	Supply
	i)	Opening Stock	22.00	10.50
	ii)	Jute and Mesta Crop	78.00	94.00
	iii)	Import	8.00	6.00
		Total :	108.00	110.50
B.	Distribution :
	iv)	Mill Consumption	90.50	90.00
	v)	Domestic / Industrial Consumption	7.00	7.50
	iii)	Export	Neg	Neg
		Total :	97.50	97.50
C.	Closing Stock		10.50	13.00

PERFORMANCE INDICATOR
Table 11.2 Production of Goods-----Qty in 000' tonnes

(April / March)	Hessian	Sacking	CBC	Others	Total
1996-97	368.7	666.6	25.2	340.4	1400.9
1997-98	392.4	864.6	19.8	401.6	1678.4
1998-99	344.1	903.3	18.5	330.3	1596.2
1999-2000	344.5	909.2	8.0	328.5	1590.2
1999-2000 ( April / Oct )	198.6	501.1	5.8	185.2	890.7
2000-2001 ( April / Oct )	200.6	485.9	3.1	198.4	888.0

(II) Domestic Consumption of Jute Goods

(April / March)	Hessian	Sacking	CBC	Others	Total
1996-97	259.8	652.0	1.7	222.5	1136.0
1997-98	285.8	842.4	1.5	257.5	1387.2
1998-99	286.2	886.3	1.3	230.5	1404.3
1999-2000	287.0	907.4	1.4	230.9	1426.7
1999-2000 ( April / Oct )	152.8	462.2	0.7	127.4	743.1
2000-2001 ( April / Oct )	154.5	468.7	1.0	141.7	765.8

(III) Closing Stock of Jute Goods with Mills

(April / March)	Hessian	Sacking	CBC	Others	Total
1996-97	23.4	17.4	2.5	15.7	59.0
1997-98	23.0	11.4	1.9	16.8	53.1
1998-99	15.7	17.3	1.7	12.6	47.3
1999-2000	15.1	13.6	1.2	10.3	40.2
1999-2000 ( April / Oct )	23.8	52.2	2.1	17.1	195.2
2000-2001 ( April / Oct )	20.9	26.9	0.9	12.1	60.8

(IV) Export of Jute Goods ---- Qty:In `000 Tonnes---- Value : Rs./Crores

(April / March)	Hessian	Sacking	CBC	Others	Total	Total Value
1995 - 96	124.5	7.2	23.2	64.2	219.1	634.82
1996-97	96.3	3.8	18.9	101.9	220.9	702.23
1997-98	98.0	25.0	16.0	111.0	250.0	755.00
1998-99	64.5	11.1	17.3	102.0	194.9	628.92
1999-2000	57.4	5.6	6.3	99.7	169.0	571.53
1999-2000* ( April / Oct )	30.5	3.2	4.1	42.5	80.3	250.69
2000-2001* ( April / Oct )	33.87	8.8	3.0	46.5	92.1	318.06

* Source: Despatches of jute goods from mills for export.

(V) Consumption of Raw Jute by Jute Mills

Period (July/June)	Quantity (In lakh Bales of 180 kgs)
1995 - 96	81.15
1996-97	84.61
1997-98	96.37
1998-99	89.69
1999-2000	90.51
1999-2000 ( July / Oct )	29.87
2000-2001 ( July / Oct )	30.21

RAW JUTE SCENARIO
The Jute Advisory Board in its last meeting held on 12.12.2000 projected the crop size at 94 lakh bales. Accordingly, the projected jute budget for 2000-2001 season and that estimated for 1999-2000 season are indicated in Table 11.1.
According to the estimate, the carryover stock at the end of the current season i.e. June, 2001 is likely to be of the order of 13.00 lakh bales which may be sufficient to take care of the normal consumption requirement of the industry for nearly two months. A quantity of 6 lakh bales consisting high grades jute for export production of various diversified products is likely to be imported by Indian Jute Mills from Bangladesh in the current season.

PRICES SITUATION OF RAW JUTE
The 2000-01 season began with prices of raw jute ruling well above the support levels in all the up-country markers fixed on the basis of Rs.785.00 per quintal for TD-5 grade ex-Assam. Following the commencement of market arrivals of new crop, prices started sliding downward and touched support levels in many areas. However, JCI in association with state agencies started MSP operation from 3rd July, 2000 in places where ruling prices went below or touched MSP level. They stepped up purchases and has so far (upto Nov. 2000) procured around 8.29 lakh quintals of raw jute. JCI’s intervention in the raw jute market has produced the desired impact.
Some basic data on the performance of the jute sector in the recent years is shown in the Table 11.2.

NATIONAL CENTRE FOR JUTE DIVERSIFICATION (NCJD)
National Centre for Jute Diversification (NCJD) was registered in January, 1992 under the Societies Registration Act, 1860 and established in June, 1994 under the Chairmanship of Secretary (Textiles) in order to give focussed attention to the diversification efforts in the jute sector. NCJD is required to consolidate R&D results of various institutes in jute and textiles and transfer these to the entrepreneurs for commercial production. It co-ordinates with various agencies and helps the entrepreneurs in arranging technical, financial and infrastructural support and encourages them to take up production and marketing of jute diversified products.
The Council of Governors of NCJD has been reconstituted with effect from 24th September, 2000 for a period of two years. It consists of 25 members, drawn from various sectors like Jute Entrepreneurs, Banking, International Institutions and the Government.
The NCJD is implementing the following schemes for development of the jute sector:

I. JUTE SERVICE CENTRE SCHEME
Jute Service Centres implement an action plan jointly decided by NCJD and respective State Government departments. Thirteen Centres are currently in operation covering 11 States. Thrust areas include amongst others the tribal pockets of Orissa, Andhra Pradesh and North East. Special plans are drawn for the North Eastern States. New areas like Latur in Maharashtra and Jammu regions have been brought into the fold of activities.

II. RAW MATERIAL BANK SCHEME
Currently 21 Raw Material Banks (RMBs) are in operation and their activities have been broadened to engage them more in the work of promotional nature without in any way curtailing their existing functions of yarn/fabric sale. These RMBs have been engaged in exploring additional usage areas for jute yarn, fibre and fabric. They also take up chemical processing for ready availability of desired material by weavers, artisans and craftpersons. The RMBs also organised workshops for generating awareness about jute application.

III. DESIGN DEVELOPMENT
NCJD has made a systematic documentation of a large collection of samples and technical data of designs. Transfer of design and skill to the weavers and artisans has been done in several clusters so that the same could be adopted in commercial production. NIFT is also involved in these efforts.

IV MARKET SUPPORT SCHEME
Most of the market support activities is done through the JSCs. The action plan of the JSCs includes organisation of exhibitions, buyers-sellers’ meet etc. These activities support regionally developed products getting directly into the local market and the producers thereby are able to assess the performance of their products. During the current year, 47 such programs are proposed. NCJD also participates in various fairs where the small units / NGOs and other units will be represented. Some of these are the IITF Calcutta, IITF, Dilli Hat and Jute India at Delhi.

V. TECHNOLOGY APPLICATION SCHEME
Technology application scheme has been conceived to ensure the incorporation of the necessities of the peripheral technology management areas which will strengthen the jute diversification programme as a whole. This Scheme aims at ensuring that the organised sector and the large industrial units are adequately represented in the programme and also to see that they are adequately equipped to complement and support the decentralised sector in jute diversification.
Reports on studies that were initiated in areas the areas like Biotechnology, Energy Management, Waste Management, etc have been duly communicated to all concerned beneficiaries to take advantage of the findings.

VI. JUTE ENTREPRENEURS ASSISTANCE SCHEME (JEAS)
Under the JEA Scheme during period April-October, 2000 6 projects were approved for funding with assistance of a total of over Rs. 122 lakhs under the loan scheme. Additionally, 22 projects were cleared under grants from UNDP involving an outflow of Rs. 3 lakhs. Promotion of these projects, it is estimated, will enhance raw jute consumption by over 2000 MT and generate employment for more than 700 individuals.
The above schemes of NCJD have generated considerable enthusiasm amongst small entrepreneurs, and NGOs. NCJD is helping these entrepreneurs, women/NGOs to consolidate their production activities and enhance their production of such diversified products.

VII. NEW INITIATIVES
Responding to the assistance sought by various organisations and administrative authorities consequent upon the need to reduce use of plastic bags NCJD has initiated some measures. A few of these are highlighted below:
The Centre has developed various designs of low-cost jute bags for the consumers.
Efforts have been taken to enhance the use of jute in the states where use of plastic bags has been banned.
Under NCJD’s assistance, in the North East region, a new jute based fabric has been developed. This fabric, which is blended with Eri & Muga, is finding wide acceptance as a furnishing material for diverse application.

INTERNATIONAL JUTE ORGANISATION
The International Jute Organisation (IJO) is the inter-governmental organisation to administer the provisions and to supervise the International Agreement on Jute and Jute Products, 1989. The organisation came into existence on 09.01.1984. India had been a member of IJO since its inception. India, however, withdrew from the membership of IJO briefly for the period 20.04.1998 to 07.01.2000 on account of differences on the future set-up of IJO among member nations.
The organisation has gone into a liquidation mode from April’2000 following the absence of some importing countries in renegotiation of the new International Jute Agreement slated to have taken effect from 1st April’2000. However, efforts to negotiate a successor agreement are continuing.

JUTE MANUFACTURES DEVELOPMENT COUNCIL (JMDC)
JMDC was set up as a statutory body with effect from 1.5.1984 under the Jute Manufactures Development Council Act, 1983. The Act provides for establishment of a Council for the development and production of jute manufactures by increasing efficiency and productivity in the jute industry and the financing of activities for such developments and for matters connected therewith. JMDC has been delegated with all functions relating to export promotion in the jute sector and also to perform other activities in the domestic market of jute sector, as are performed by a commodity board. The activities of JMDC are wholly financed by the Government of India out of the cess collected on various jute manufactures.
a) The major activities undertaken by JMDC during 1999-2000 were as follows:
The Council organised 17 exclusive jute exhibition-cum-sales and exclusive jute exhibition (Jute India’2000) of jute diversified products and organised participation in 11 product specific and general exhibitions in the domestic market. In the international market the council participated in one foreign fair under UNDP funding and four foreign fairs under JMDC’s own funding.
During 1999-2000, Council organised 11 workshops/seminars/BSM on Jute for Domestic and export market promotion.
b) In the year 2000-2001 till November, 2000 the Council has organised following market promotion activities :
Organised 12 exclusive jute exhibition-cum-sales, 4 seminars/workshops/interactive meetings/BSM and organised participation in 4 product specific fairs. A jute delegation visited London and Brussels during 5-8 September to promote Food Grade Jute Products (FGJP)/Yarn. The delegation also attended the meeting of the Executive Committee of International Cocoa Organisation in London.
JMDC has organised retail sale outlets or portions thereof as dedicated outlets for diversified jute products. Three showrooms at Bangalore, Chennai and Mumbai are managed, by Central Cottage Industries Corporation. One in Patna, by the Bihar State Export Corporation, one in Ahmedabad by Madhya Pradesh Hasthshilpa Vikas Nigam and two showrooms in Calcutta by the Jute Corporation of India and West Bengal Handicrafts Development Corpn,. One in Tirumala by A.P. Handicrafts Development Corporation.
The Council is working in close association with IJIRA for development of low cost jute bags and promoting jute bags as an alternative to plastic bags in coordination with relevant State Govt. authorities.
The website of the Council “www.jute.com” has enabled the users to have direct access to the updated statistics and information on jute and facilitated direct inquiry to the industry/exporters by the buyers.