Jute industry ‘disappointed’ with Union budget

Kolkata: The budget speech of Union Finance Minister Nirmala Sitharaman has brought no cheer to the jute industry as ”no incentive and specific focus to encourage modern farming practice” was announced, a section of mill owners said on Monday.

The sector, which involves 2.5 lakh workers and five lakh jute farmers in poll-bound West Bengal, has a lot of expectations from the Union budget, they said.

”We were expecting at least some announcements on the modernisation of jute cultivation ahead of the West Bengal Assembly elections. There was no incentive and specific focus o encourage modern farming practice in the budget,” a mill owner said on condition of anonymity.

Indian Jute Mills Association chairman Raghav Gupta said there is no mention about the golden fibre in the budget speech but the industry body will give its official comments after going through the Finance Bill.

”The expectations from the Centre were rife after former TMC MLA Suvendu Adhikari, who had recently joined the BJP, was made chairman of the Jute Corporation of India. We thought the BJP-led NDA government at the Centre will provide direct support to the sector ahead of the West Bengal polls but are disappointed with the budget,” another miller, who did not want to be quoted, said.

Sitharaman announced that seven textile parks with world-class infrastructure would be set up but whether the jute industry will get benefit from these facilities cannot be ascertained now, the mill owners said.

To enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA)will be launched, the finance minister said in her budget speech.

Sitharaman, however, announced that women would be allowed to work in the night-shifts with adequate protection,which has been demanded by the jute industry, they said.

Moreover, the mill owners expressed concerns over the Centre’s recent proposal to amend the Jute and Jute Textiles Control Order, 2016.

The Jute Commissioner’s Office has already sought public opinion before making necessary amendment in the order with an intent of widening manufacturing base of gunny bags.

”The proposal to amend Jute and Jute Textiles Control Order to widen manufacturing base will defeat the purpose of the mandatory jute packaging Act, and the interest of jute farmers will be compromised if the amendments are made,” the mill owners said.

IJMA in its comments said, ”the orders for jute bags are given on the basis of installed spindle capacity. If processors or convertors of jute bags from the intermediate stage are allowed to produce, it will jeopardise the system of proportionate allocation of PCSOs for the manufacturing mills.”