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Jute Policy



National Textile Policy - 2000
Processing is the weakest link in the textile production chain, and results in loss of potential value. To bring about the necessary improvement : Government will encourage setting up of modern processing units, meeting international quality and environmental norms; the network of CAD/CAM, computerised colour matching and testing facilities will be expanded, particularly in the clusters of the decentralised textile centres; research support will be extended in achieving ISO 9000 and ISO 14000 standards; and thrust will be given on development of eco-friendly dyes, including natural and vegetable dyes, and on energy conservation.
The role of this sector is poised for radical changes in view of the changes in the international trading environment brought about by the rules and regulations of the WTO. The industry will be restructured as follows:
The office of the Textile Commissioner will focus attention on the development of the garment industry; garment industry will be taken out of the SSI reservation list; joint ventures and strategic alliances with leading world manufacturers will be promoted; schemes with necessary infrastructural facilities for the establishment of textile/apparel parks will be designed with the active involvement of State Governments, Financial Institutions and the private sector; and
setting up of strong domestic retail chains to ensure easy availability of branded Indian products will be encouraged.

Jute Packaging Material (Compulsory Use) Act, 1987
Essential Commodities Act, 1955 (10 of 1955)
Jute Products, in Order of Indian Trade Classification Code NO.
National Textile Policy - 2000
Jute Policy Schemes



The jute industry in India is beset with many problems, including competition from the synthetic sector, high labour cost, obsolescence of machinery and uneconomic working. These factors have led to large scale sickness in the industry.25. The approach for the jute sector will be directed towards reviving the jute economy through supportive measures covering research and development; technology up gradation; creation of infrastructure for storage and marketing of raw jute; and product and market development activities for jute and diversified jute products. 26. The Mandatory Jute Packaging Order will be reviewed from time to time in the interest of the jute farmers, jute industry and the end-user sectors. Simultaneously, steps will be taken to enable the industry to become cost and quality competitive in domestic and international markets based on the inherent strength of jute as an environment-friendly fibre.27. Organisations like JMDC (Jute Manufacturers Development Council) and NCJD (National Centre for Jute Diversification) specifically set up for the overall growth and development of the industry will be appropriately strengthened.
Considering the growing prospects for technical textiles world wide, priority will be accorded for their growth and development. The focus will be on R& D efforts and augmentation of raw material production. Standards will be set to facilitate adherence to stringent functional requirements. EXPORTS
Textile exports play a crucial role in the overall exports from India. With the objective of increasing exports to US $ 50 billion by 2010 from the present level of US $ 11 billion, the thrust will be on:
Establishing a multi-disciplinary institutional mechanism to formulate policy measures and specific action plans, including those relating to the WTO; and closely monitoring financing proposals; forging of strategic alliances for gaining access to technology; operating a brand equity fund exclusively for textile and apparel products, consistent with WTO norms. restructuring AEPC and other Export Promotion Councils play the role of facilitators and professional consultants; developing infrastructure facilities in the predominantly textile and apparel export oriented areas in close co-operation with State Governments and Financial Institutions and the private sector; and evolving a suitable mechanism to facilitate industry associations to deal with disputes under the various agreements of the WTO.
Continued and focused attention will be given to handicrafts to enable the sector to increase both its contribution to exports and its productive employment. Initiatives will include upgradation of skills, creation of better work environment, design and technology intervention, development of clusters for specific crafts with common service facilities, improvement in infrastructure, and market development.



Recognising the vital role of IT in a progressively IT-driven global economic environment, as also its scope in bringing about speed, efficiency and transparency in delivery systems, Government will play a proactive role in promoting and facilitating adoption of IT in the textile industry and trade. Using IT as the platform, a strong commercial intelligence network will be built up and suitable infrastructure for harnessing the potential of e-commerce will be put in place.
HRD assumes new significance with inescapable competition facing Indian textile products both in the international and domestic markets. Government will support programmes of organisations and institutions engaged in HRD that address the professional manpower needs of the industry, as well as at the cutting edge level of workers and shop-floor supervisors. Institutions will be encouraged to network and synergistically co-operate amongst themselves. IT will become an integral part of HRD effort.
In recognition of the pioneering role of NIFT, the Institution will be assisted to grow and progress on innovative lines. The Nodal Centre for Upgradation of Textile Education (NCUTE) will be helped to grow into an autonomous National level TexEd Resource Centre. Information and expertise available in technical institutes like IITs, TITs and NID will be tapped for expansion of programmes.
A growth-oriented fiscal road map will be drawn up, which has the advantage of predictability. The parameters within which the multi-level duty structure and rates of levies will be reviewed and rationalized will include the thrust on exports, the fiscal regime of major competing countries, WTO consistency, and the need to keep prices at levels affordable to the largely poor consumers, who will continue to form the bulk of the market.
Funding requirements of different segments of the textile industry will be periodically reviewed and short-term and long-term requirements spelled out, particularly of the handloom, power loom, handicrafts and sericulture sectors. Innovative measures for tapping public and private sector funding will be worked out. The endeavor will be to, Encourage the private sector to take the initiative in participating in financing of specific needs of the textile industry; Set up a Venture Capital Fund in consultation with and involvement of financial institutions for the promotion of talented Indian Designers, Technologists, innovative market leaders and e-commerce ventures;


Organisations working under the Ministry of Textiles will be re-oriented, right sized and restructured to act as facilitators instead of regulatory bodies, with the mandate and role of each being reviewed and redefined over the next two years. Simultaneously, regulations and controls will be reviewed and progressively reduced. 37. Some of the specific changes will be:


The role of the Offices of the Textile Commissioner and Jute Commissioner will be molded to serve the developmental needs of the industry; Export Promotion Councils will be restructured so as to become capable of devising dynamic export strategies; promoting financing; disseminating information on various aspects of the WTO agreements; extending legal advice to trade and industry in dispute settlements, etc. All the nine Textile Research Associations under the Ministry of Textiles will be revamped to give a market and industry driven focus to their Research and Development support. The role of the Central Silk Board will be restructured in keeping with the objective of participative implementation in partnership with the State Governments and the private sector.

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