Reviving the Jute Industry in India
Mamta Mukherjee
The
advent of synthetics has severally undermined the position of jute
as a premier packaging material. With a new business strategy a
revival is possible.
T he
jute industry is one of the oldest in the country. The first power
driven jute mill was established in the country in Rishra, near
Calcutta in 1859 and since then the industry has made rapid
progress. Much of the development in the jute industry has taken
place in Bengal. The partition of the country gave a setback to the
industry as major jute growing areas went over to Bangladesh.
Therefore the government made concerted efforts to increase the
production within the country. As a result, areas under jute
increased from 6.52 lakh acres in 1947-48 to 0.9 million hectares in
1993-94 (includes total area under jute and Mesta both), and their
production stood at 8.5 million bales. The production of jute
textiles also increased from 8,37,000 tonnes in 1950-51 to 14,51,000
tonnes in 1993-94.
In the
recent environmentally conscious era, jute contributes lasting
solutions to the universal problems of pollution. It is a renewable
natural resource, which makes no demand on the world’s scare energy
resources, and most importantly it provides jobs for many people.
Modern
science plays a vital role in the development of jute. This is
evident in improved seed strains, progress in agronomy, greater crop
yields for better economics and advanced grading, spinning weaving,
and modern textile finishing techniques. Today the "golden fibre" is
available in a range of finer yarns of light weight, improved with
special finishing treatments which offer a softer fabric.
Present
status of jute industry in India
The
advent of synthetics has greatly undermined the position of jute as
a premier flexible packaging material. In affluent western countries
synthetics have almost completely replaced jute in the area of
packaging and carpet backing. Abundant availability of local plastic
materials, modern handling, transport and strong methods and "throw
economy" - where, due to high labour costs involved in collection
and redistribution of second hand bags, reuse is uneconomical- are
the factors responsible for the replacement of the jute bags in
these countries.
The
socio-economic conditions in developing countries are quite
different and jute still has great relevance in these countries.
Yet, even in these countries, it is apprehended that synthetic bags
and fabrics will continue to have larger shares.
Moreover, the increased production of jute bags have lowered the
real value of jute in the market. As a consequence, the farmers
still remain the exploited class. These bare facts are a pointer
that non-traditional end use value added products are to be
identified for jute fibres for the long term survival of the Indian
jute community.
National Jute Development Programme
The
government of India in 1992, launched a National Jute Development
Programme (NJDP) with assistance of US$ 20 million from the United
Nations Development Programme, and an equal contribution from the
government of India. The main aim of this programme is to revive the
dying jute sector through enhanced diversification of jute products,
increased value addition and strengthened R&D capacity. The
programme aimed at a broader vision of creating sustainable
employment and income opportunities, thus indirectly enhancing the
welfare of the community.
To
achieve these objective, 26 sub-projects were designed with
measurable outputs and different agencies were assigned the
responsibility to implement these sub-projects. These agencies are
research organisations, teaching institutions, private sectors
companies, government agencies and non-governmental voluntary
organisations.
The
major component of the NJDP, the Jute Entrepreneurs Assistance
Scheme (JEAS), was launched on April 1995 and was in operation till
May 31, 1998. The objective of this scheme is to transfer the
benefits of R&D and test marketing efforts of various institutions
under the programme to as large a number of entrepreneurs as is
feasible, in different parts of the country.
The
JEAS involves assistance for six different categories of
entrepreneurs, one of which are NGOs registered under the Societies
Act or with Khadi Village Industries Board/ Khadi Village industries
Commission. Under this scheme, artisans, particularly women artisans
and entrepreneurs working with an NGO, are provided assistance in
the form of a grant of up to Rs 2 lakh per annum. This grant is to
promote production and marketing of diversified jute products. The
NGOs have to match this contribution with their own resources in the
form of either land, building or other facilities. Alternatively,
they can provide resource raised from NABARD, Small Industries
Development Bank of India and co-operative Banks.
The
JEAS is operated by the programme management unit of the UNDP-
assisted NJDP and the National Centre for Jute Diversification (NCJD),
an autonomous body under the Ministry of Textiles. Till September
1997, 75 NGOs have been supported through this scheme.
Development Alternatives carried out an evaluation study on the NGO
component of the JEAS. The objective of this assignment was to
evaluate the individual NGO projects, and thereby to assess how far
the scheme has been successful in attaining its objectives. Eleven
grassroots NGOs in West Bengal had received funds through the JEAS
scheme to train women, in particular, in jute handloom and
handicraft items.
The
significant pointers to the success of the programme are as follows:
◊ |
Strong and effective
market strategy is the sine qua non for overall success of the
programme. |
◊ |
NGOs that have
adopted participatory project management techniques, with more
involvement of the local people have fared well compared to the
NGOs with centralised decision making power and less
transparency in the day to day running of the enterprise. |
◊ |
One of the major
findings of the team was the need for restructuring the JEAS
scheme, to make it more realistic, in terms of better
co-ordination, increased project item frame, and more
participative evaluation. |
◊ |
It has been
successful in initiating the participation of women even in
remote areas such as the backward district of Raipur in North
Bengal and is one of the major sources of income in these areas. |
◊ |
The need for
accountability of the NGOs to the funding source is essential to
channelise the flow of funds in the right direction and to
ensure the proper utilisation of the funds. |
The way
forward
The
major lacuna in most of the projects is the mode of operation. The
entire idea of creating sustainable livelihoods without
incorporating the business outlook has led to the failure in
effective and sustainable implication of the projects.
Strategic planning in terms of focus in creating enterprise
development skills, before or simultaneously along with the
implementation phase is very essential. One of the observations
during the study period which emerged very clearly is projection of
this programme as a "grant in aid" rather than an "enterprise
development programme". The training stipends that are given through
this project are the main attraction for the people.
To
conclude, the aim and objective of reviving the dying jute industry
in India through small and micro enterprises in India is
commendable. However, for effective implementation and timely and
successful realisation of the aim of creating sustainable
livelihoods, the focus of the programme should shift from mere
social work to pure business and enterprise development skills.
Focus on support service factors such as market network, training
and skill development and financial viability of the enterprise
should be essentially emphasised. Funds should be made available
through this programme to agencies interested in providing the
associated support services.
Thus
with proper focus, the dream of reviving the glory of the golden
thread does not seem very difficult. q
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