Jute Cultivation Area in India Shrunk by 20% in 9 Years, Most Went to Real Estate

The golden fibre jute has lost much of its sheen in India and continues to deteriorate as its cultivation dropped by 20% in the last nine years. 

Long Story, Cut Short
  • One of the prime reasons for shrinkage, to the extent of 170,700 hectares, is the availability of higher yielding alternative options like real estate.
  • A Parliamentary Committee has urged Textiles Ministry to draft a comprehensive policy to revive closed mills and wanted to know of there’s any proposal to revive them by utilising the infrastructure and machinery already in place.
  • Efforts to promote the Jute Mark India logo need to be ramped up.
Till the 9th phase of ICARE project (launched in 2015), out of estimated 40 lakh farmers, only 4.35 lakh farmers (10%) have been registered and the remaining 35.65 lakh farmers are yet to be registered.
Unregistered Till the 9th phase of ICARE project (launched in 2015), out of estimated 40 lakh farmers, only 4.35 lakh farmers (10%) have been registered and the remaining 35.65 lakh farmers are yet to be registered. Dibakar Roy / Unsplash

The once-thriving jute sector in India has been under duress for a while, and the golden fibre has been losing its sheen over time. New numbers indicate that the area under jute cultivation shrunk by around 20% in the last nine years alone. From 838,000 hectares in 2013–14, the cultivation area has dropped to 667,300 hectares in 2021–22. The shrinkage is to the extent of 170,700 hectares, and one of the prime reasons for this is the availability of higher yielding alternative options like real estate.

The revelation comes from the fifty-third report of the Standing Committee on Labour, Textiles and Skill Development on 'Development and promotion of jute industry'.

As Parliamentary Committee reports come, this one too is straight-jacket and most of the findings need to be ferreted out. 

One key highlight is that the Indian government does not have a policy worth the name to revive closed jute mills. In the last three years, five new mills have been established, and an identical number have been shut down. The Committee has urged the Ministry of Textiles to draft a comprehensive policy on reviving closed mills.

The Committee wanted to know of there is any proposal to revive the closed mills by utilising the infrastructure and machinery already in place. The ministry’s responses was: “The Union Cabinet, in its meeting held on 10 October 2019 approved the closure of six jute mills (five in West Bengal and one in Bihar) of National Jute Manufacturers Corporation. Movable assets of these mills have already been disposed of and disposal of the immovable assets are going on.”

And surprisingly, job losses don't exist officially. The ministry's response to the Committee was "No such representation of workers job/employment loss has been reported to O/o Jute Commissioner." It did not seem to be a matter of concern. When asked about the reasons for closure of jute mills and the nature of assistance provided to the workers who lost their jobs, the ministry stated: “The mills in jute sector close due to problems in management, labour troubles and financial difficulties. Usually, the jobless workers of the closed jute mills are engaged in nearby working jute mills as jute mills are facing shortage of skilled workers.”

Few numbers to go by

One of the important components under the Jute ICARE (Improved Cultivation and Advanced Retting Exercise) programme is to provide training to registered jute farmers, wherein they are made aware of and motivated for adopting better agronomic practices for jute cultivation by the Central Research Institute for Jute and Allied Fibres (CRIJAF) at various stages of jute production. 

The progress on this front has been dismal. Till the 9th phase of ICARE project (launched in 2015), out of estimated 40 lakh farmers, only 4.35 lakh farmers (10%) have been registered and the remaining 35.65 lakh farmers are yet to be registered. The panel was told that a survey, to be implemented by an outside agency, is being planned.

The Committee has called upon the ministry, National Jute Board (NJB) and Jute Corporation of India (JCI) to “ensure that the survey is undertaken and completed in a time-bound manner so that the welfare schemes being implemented/proposed to be implemented for the welfare of jute farmers are truly extended to them. Further, considering the fact that only 10% jute farmers are registered, the Committee recommend that all possible steps be taken on priority for registration of jute farmers so that they get the training benefits being imparted by CRIJAF.”

Efforts on promoting the Jute Mark India logo too need to be ramped up. The logo was launched on 9 July 2022 for the branding and positioning of Indian jute in both domestic and international markets. The Jute Mark India registration authenticates the product being manufactured are of pure jute and jute-blended products of Indian origin. Till the end of October 2023, only 55 vendors/units have registered. Here too the progress has been rather sluggish.

The Committee felt that the logo will help jute farmers to get fair prices for their product; give boost to jute industry thereby creating job opportunities for artisans and manufactures; and availability of authentic and high-quality jute products to consumers, etc. The Committee wanted the measures already initiated for promotion of jute products especially those bearing Jute Mark India logo “be intensified in the larger interest of jute farmers, artisans and manufacturers and consumers and also to achieve the objective of branding and positioning of Indian jute globally in domestic and international markets. This will also help tackling the menace of plastic bags and replacing such bags with ecofriendly jute bags.”

Umbrella failing to give cover

Tardiness is also to be found in the pace of work under the National Jute Development Programme (NJDP). This is an umbrella scheme for the development and promotion of the jute industry/sector, and comprises schemes/sub-schemes for jute agriculture (like JUTE-ICARE), modernisation, diversification and workers’ welfare.

The programme is being implemented during the ongoing 15th Finance Commission (2021–22 to 2025–26) with a total outlay of ₹485.58 crore. During 2021–22 and 2022–23, out of the allocated amount of ₹170.95 crore, only₹86.50 crore (50%) was utilised. About ₹400 crore (82% of the total outlay) is to be utilised during the remaining period of implementation of 2023–24 to 2025–26. 

The Committee wants action on this. It noted in a statement: “Observing that the physical and financial progress of National Jute Development Programme (NJDP) during the first two and half years of its implementation is not encouraging, the Committee have exhorted the Ministry to address the underutilization of funds, strengthen coordination, monitoring & implementation mechanism and bring forth robust interventions to considerably improve performance of the Scheme in physical and financial terms.

“Observing that an MoU has been signed between the Ministry and NJB to evaluate the Schemes through a third party agency during the first quarter of 2024-25, the Committee have desired that the evaluation exercise be completed in a time bound manner and the recommendations so made be also examined and implemented within the stipulated time frame for development and promotion of Jute Industry/Sector.”

A Parliamentary Committee has exhorted the Ministry to address the underutilisation of funds, strengthen coordination, monitoring and implementation mechanism and bring forth robust interventions.
Observing that the physical and financial progress of National Jute Development Programme (NJDP) during the first two and half years of its implementation is not encouraging, a Parliamentary Committee has exhorted the Ministry to address the underutilisation of funds, strengthen coordination, monitoring and implementation mechanism and bring forth robust interventions. PublicDomainPictures / Pixabay
 
 
  • Dated posted: 12 February 2024
  • Last modified: 12 February 2024