Jute industry 'disappointed' with Union budget

The budget speech of UnionFinance Minister Nirmala Sitharaman has brought no cheer tothe jute industry as no incentive and specific focus toencourage modern farming practice was announced, a section ofmill owners said on Monday.The sector, which involves 2.5 lakh workers and fivelakh jute farmers in poll-bound West Bengal, has a lot ofexpectations from the Union budget, they said.We were expecting at least some announcements on themodernisation of jute cultivation ahead of the West BengalAssembly elections.

The budget speech of UnionFinance Minister Nirmala Sitharaman has brought no cheer tothe jute industry as ''no incentive and specific focus toencourage modern farming practice'' was announced, a section ofmill owners said on Monday.

The sector, which involves 2.5 lakh workers and fivelakh jute farmers in poll-bound West Bengal, has a lot ofexpectations from the Union budget, they said.

''We were expecting at least some announcements on themodernisation of jute cultivation ahead of the West BengalAssembly elections. There was no incentive and specific focusto encourage modern farming practice in the budget,'' a millowner said on condition of anonymity.

Indian Jute Mills Association chairman Raghav Guptasaid there is no mention about the golden fibre in the budgetspeech but the industry body will give its official commentsafter going through the Finance Bill.

''The expectations from the Centre were rife afterformer TMC MLA Suvendu Adhikari, who had recently joined theBJP, was made chairman of the Jute Corporation of India. Wethought the BJP-led NDA government at the Centre will providedirect support to the sector ahead of the West Bengal pollsbut are disappointed with the budget,'' another miller, who didnot want to be quoted, said.

Sitharaman announced that seven textile parks withworld-class infrastructure would be set up but whether thejute industry will get benefit from these facilities cannot beascertained now, the mill owners said.

To enable the textile industry to become globallycompetitive, attract large investments and boost employmentgeneration, a scheme of Mega Investment Textiles Parks (MITRA)will be launched, the finance minister said in her budgetspeech.

Sitharaman, however, announced that women would beallowed to work in the night-shifts with adequate protection,which has been demanded by the jute industry, they said.

Moreover, the mill owners expressed concerns over theCentre's recent proposal to amend the Jute and Jute TextilesControl Order, 2016.

The Jute Commissioner's Office has already soughtpublic opinion before making necessary amendment in the orderwith an intent of widening manufacturing base of gunny bags.

''The proposal to amend Jute and Jute Textiles ControlOrder to widen manufacturing base will defeat the purpose ofthe mandatory jute packaging Act, and the interest of jutefarmers will be compromised if the amendments are made,'' themill owners said.

IJMA in its comments said, ''the orders for jute bagsare given on the basis of installed spindle capacity. Ifprocessors or convertors of jute bags from the intermediatestage are allowed to produce, it will jeopardise the system ofproportionate allocation of PCSOs for the manufacturingmills.'' PTI BSMBDC BDC