The Government is ensuring consistent demand for jute mills under the Jute Packaging Materials (Compulsory Use in Packing Commodities) [JPM Act], 1987. At present, a minimum of 100% of food grains and a minimum of 20% of sugar procured by State Procuring Agencies (SPAs) are to be compulsorily packed in jute sacking.
The Government of India has launched Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) for Jute Industry and Jute Diversified Products Manufacturing Units to facilitate modernization and up-gradation in existing and new jute mills/JDP units by way of capital subsidy. The Government has also imposed Anti-Dumping Duty on jute goods originating from Bangladesh and Nepal to protect domestic jute industry.
The different jute mills under National Jute Manufactures Corporation (NJMC) Ltd. formed through nationalization of six jute mills including Alexandra, Kinnison and Khardahwere closed due to financial losses and the closure was approved by Cabinet Committee of Economic Affairs (CCEA) after the revival scheme failed to materialise.
This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in a written reply in the Lok Sabha today.
