Jute industry fails to cash in on changing global trends

KOLKATA: The advent of the ‘open quota’ regime, globalisation and economic liberalisation under the WTO agreement have opened up new opportunities as well as challenges for the sector, as a textile family member.

But it is yet to be seen whether it transform these possibilities into economic benefits and overall growth. At the moment, there is no significant improvement despite several policies and financial support from the Centre.

The industry continues to deteriorate, with its obsolete machinery unable to deliver goods economically and keep pace with the fastchanging market trends. With its 35% labour element per unit cost of production, the sector is largely labour-intensive. A section of the industry itself has expressed doubts as to how long it will exist this way.

The government, the industry and the various nodal agencies are hardly making any honest effort. The announcement of the National Jute Policy, 2005 (NJP) by the Centre brought hope, as it emphasised machinery modernisation, technology upgrade and diversification.

But the excitement died down soon, with authorities taking no action to implement the various policy announcements spelt out in the NJP. Whatever little improvement has taken place is due to select millowners’ initiation to improve things in their own units, within the available infrastructure and setup.

According to industry sources, jute’s ecofriendly advantages have not yet been fully capitalised upon and diversified products from decentralised units have not been properly marketed domestically and internationally, despite their bright prospects.

There is overlapping of jobs and responsibilities in a number of official agencies. The setting up of the proposed jute board — in line with the Tea Board — as an apex organisation to eliminate such overlapping is yet to see the light of the day.

The industrial and farm sectors are not adequately modernised and technologically upgraded to convert the natural advantages of jute into competitive strength.

It calls for setting up of a centre of jute machinery development at a national level, with the help of scientists and researchers working in different national R&D institutions in the textile sector, to implement jute modernisation.

Sources admit there is a need for improving the industry’s credibility with buyers worldwide. The producing mills should achieve relevant ISO certification. The concerned official nodal agency would do well to work on such certification facilities.

This is essential as the Indian Standards Institution has limited acceptability in international trade and there is need for maintaining standards in quality.