12 November 2009 – The mantra for survival of jute industry is product diversification and the Jute Geo Textiles (JGT) provide an opportunity to the Jute Industry to diversify and capture new market, said Thiru. Dayanidhi Maran, Union Minister of Textiles while launching the International Project for the Development and Application of Potentially Important Jute Geotextiles, here today. Ambassador Ali Mchumo, Managing Director of the Common Fund for Commodities, Tmt. Rita Menon, Secretary, Textiles, Thiru. Sutanu Behuria, Chairman, International Jute Study Group (IJSG) and Thiru. Sudripta Roy, Secretary General, International Jute Study Group, and Thiru. Bhupendra Singh, Joint Secretary, Ministry of Textiles were also present.

The Minister said that Jute Geotech is a very cost effective and versatile material for ground modification and stabilization, however, in India the use of these materials remain inadequate and far below the potential despite the country having the second largest road network in the world and indigenous fibre base. It becomes our bounden duty to sensitize the stakeholders about myriad applications of Jute Geotextiles and its business potential, emphasised Thiru. Maran.

Jute Geotextiles (JGI) can have a business potential of Rs. 1,260 crore in the 21,000 kilometre National highway being upgraded by the Government, said Thiru. Maran. The Bharat Nirman, a time bound action plan for development of rural infrastructure, envisages laying of 24,000 kilometres of roads to provide connectivity to rural areas and Jute Geotextiles in this Programme can generate a market potential of Rs. 868 crore, said Thiru. Maran. The Government will spent US $ 78.5 billion for development of road infrastructure during the Eleventh Five Year Plan Period and the Jute Textiles Industry shall shape up to exploit the potential, said the Minister.

The Minister said that there is an immediate need for standardization, if the Jute Geotextiles have to meet acceptability both in national and international markets. The Minister said that the five years US$ 3.96 million dollar project has also a social angle. The increased off take of jute will help in poverty alleviation in jute-growing areas and in improving the living conditions of farmers and workers. I compliment the Common Fund for Commodities (CFC) and the International Jute Study Group (IJSG) for their initiative, said the Minister.

The Minister hoped that the Jute Manufactures Development Council (JMDC) as the Project Execution Authority (PEA) will be able to fulfil its commitments with the support and co-operation of the partners of the project and lead jute sector to a better position in the interests of the farmers, the workers, the industries and all the stakeholders in the sub-continent.

About Project For Development & Application of Potentially Important Jute Geotextiles

The project will help in identifying potentially important Jute Geotextiles (JGT) for use in control of soil erosion and rural road construction and standardization of design, methodology and specifications for use of Jute Geotextiles. Under the project, 26 field trials will be conducted — 16 in India and 10 in Bangladesh -– to certify and standardize the effectiveness of JGT. The Ministry of Rural Development supports the use of JGT in its projects and is in the process of short-listing sites for this project. The estimated cost of the five years project is US$ 3.6 million, of which the Government of India will provide US$ 1.25 million as counterpart contribution for implementation of the project activities in India. The Government of Bangladesh will contribute US$ 0.57 million. The project will be financed by the Common Fund for Commodities (CFC). The International Jute Study Group (IJSG), Dhaka will be the Supervisory Body, and the Jute Manufactures Development Council (JMDC), Kolkata, India will execute the project. The Jute Diversification Promotion Centre (JDPC), Bangladesh is the nodal agency for the Bangladesh part of this project.

Common Fund for Commodities (CFC)

The Common Fund for Commodities, Amsterdam, Netherland, an Inter Governmental financial institution established within the framework of the United Nations, operates under the novel approach of commodity focus instead of the traditional country focus. The member countries benefit from the projects financed by the Fund, whose basic rationale is to enhance socio-economic development of commodity producers; and to contribute to the development of the society as a whole. The Fund finances projects for smallholder farmers, as well as small and medium sized enterprises involved in commodity production, processing and trade in developing and least developed countries.

International Jute Study Group (IJSG)

The International Jute Study Group (IJSG), Dhaka, Bangladesh is an intergovernmental body set up under the aegis of United Nation Conference on Trade and Development (UNCTAD) to function as the International Commodity Body (ICB) for Jute, Kenaf and other Allied Fibres. The International Jute Study Group (IJSG), the legal successor to the erstwhile International Jute Organisation (IJO), was established on 27 April 2002, to administer the provisions and supervise the operations of the Agreement establishing the Terms of Reference of the International Jute Study Group, 2001.

Jute Manufactures Development Council (JMDC)

The Jute Manufactures Development Council (JMDC) is the national agency for promotion of Indian Jute. Created by an Act of Indian Parliament in 1983, it is chaired by the Secretary, Government of India, Ministry of Textiles. The Council’s prime objective is to provide better marketing of jute products, although it addresses itself to multi-dimensional activities. JMDC is a body comprising of representatives from all sectors including growers of jute and producers & exporters of jute products, experts, workmen engaged in production as well as different departments of Government of India and local governments of jute growing States.

SOURCE: Press Information Bureau, Government of India