Govt formulating jute policy

NEW DELHI: The Central government is formulating a comprehensive jute policy and recommendations received in this connection are being processed to finalise the details, the Lok Sabha was informed on Friday.

In a written reply to a question, Textile Minister Shankarsinh Vaghela said there is no consideration to abolish the Jute Packaging and Materials Act (JPMA) and informed that the Board for Industrial and Financial Reconstruction (BIFR) is examining the cases pertaining to the revival of sick jute units.

Once the operating agency appointed by the Board finalises the revival scheme of these units, the Board would take a decision on rehabilitation of such units, he pointed out.

In reply to another query, Vaghela said the total exports of textile products during the fiscal 2003-04 registered a growth rate of six per cent, but the export target of $13,500 million could not be achieved mainly due to increased competition from countries like China and Bangladesh.

He, however, said that exports data of handloom products were unavailable due to absence of ITC (HS) codes and the Finance Ministry and the DGFT have been urged to provide the same.

Vaghela informed the Lok Sabha that domestic production of mulberry raw silk has declined due to continuous drought conditions in traditional silk-producing states like Karnataka and Tamil Nadu. Besides, imports of raw silk mainly from China since 2001 coupled with steep fall in prices disrupted the silk market and adversely affected the cropping pattern of large number of cocoon growers of the southern states.

However, the government has launched several schemes to increase domestic production with a remunerative price which include, stepping up R&D efforts of Central Silk Board, extending seed support and technical assistance, launching centrally-sponsored schemes to strengthen farm infrastructure, popularising low cost productivity techniques, advocating contract farming models and addressing the supply chain issues, he said in reply to another question.

In this connection, the Minister also said the government is also considering revival of certain mills of National Jute Manufacturers Corporation (NJMC).

In reply to another query, Vaghela informed the Lok Sabha that India remains the leading exporter of cotton yarn and the projected export of raw cotton is 12 lakh bales in the current fiscal. He said the government has continued the Technology Mission on Cotton (TMC) which was launched in February 2000.

He pointed out that the norms of Technology Upgradation Fund Scheme (TUFS) are relaxed on a continuing basis based on feedback from the industry and that the scheme has been extended up to March 2007.