28 jute mills closed in India in FY16: Govt

NEW DELHI: As many as 28 jute mills have shut down during 2015-16, as against 18 in the previous fiscal, the Rajya Sabha was informed today.

Of the 28 private and public sector jute mills that closed, 17 were in West Bengal (up from 10 in FY15) while six were located in Andhra Pradesh, Union Textiles Minister Smriti Irani said. The remaining five mills were in Odisha, Bihar, UP and Chhattisgarh.

"Government has been implementing several schemes and measures for supporting the jute manufacturing units in particular and the jute sector in general," Irani said.

The government provides an assured market to the jute sector under the Jute Packaging Materials Act, 1987.

Under the Act, government has mandated 90 per cent of foodgrains and 20 per cent of sugar be packed in jute bags. The annual subsidy for this amounts to Rs 5,500 crore approximately.