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.

The 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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