Jute Raw Material Bank (JRMB) Scheme

India is the largest producer of jute, which has immense export potential through value addition. Production of Jute Diversified Products (JDPs) is a significant source of income and employment in

rural areas. The National Jute Board (NJB) has therefore promoted several clusters for the manufacture of jute-based products across the country. These clusters include Women’s Self Help Groups (WSHGs), entrepreneurs, artisans and other craftsmen. To sustain a healthy level of production, there needs to be a steady supply of raw material. For this purpose, NJB is implementing the Jute Raw Material Bank (JRMB) Scheme.

Objectives of the Scheme

The major objectives of the jute raw material bank scheme are listed below:

To encourage medium, small and micro enterprises (MSMEs) in the jute sector to increase the production of bags, handicrafts, and other JDPs.
Keeping in mind the decentralised nature of the jute industry, JRMB will ensure the availability of jute fibre and other raw materials close to the locations of the production units or clusters.
To increase employment opportunities, especially for women in the jute sector and provide a boost to the rural economy.
To create and sustain a strong demand for raw jute by promoting JDPs; this will secure the livelihood of thousands of jute farmers.
To build supply chains for the uninterrupted flow of jute raw materials at nominal prices.

Salient Features

Some salient features of the jute raw material bank scheme are as follows:

The benefits are extended in collaboration with entities known as operating agencies (OAs); they will generally be organisations that have already developed good forward and backward linkages.
Initially, 20 JRMBs are envisioned under the scheme, with a target of 100 by 2020-21.
The area of operation for the scheme is spread across the country, provided there is viability for jute and jute-based products in the region based on existing records.

Activities of JRMB

Under the jute raw material bank scheme, operating agencies are expected to undertake the following activities:

Explore the area to recognise existing and potential JDP clusters for increasing production in a sustainable manner.
Identify and interact with the intended beneficiaries to spread awareness regarding the latest information and technology updates.
Analyse the market trends for jute products to determine the raw material needs of these clusters.
Maintain a database for timely upgrade of units within the cluster.
Collaborate with JIDCs and JSCs for the smooth functioning of the scheme.
Offer support and encouragement to WSHGs, entrepreneurs and craftsmen by supplying them with fairly priced raw materials.
Establish e-marketing modes with an inventory tracking system to maintain records of material availability
Display on the website of JRMB the details regarding stocks of various raw materials

Raw Materials Supplied

Purchase of raw material for sale through JRMBs can be made from multiple sources, but they must be sold to the beneficiaries at economic prices. Also, procurement must be done directly and not through brokers or middlemen. Ideally, the selling price must be mill gate price plus transportation costs only. The following products can be sold through the JRMBs:

Raw jute for making braided products
Jute or jute blended yarn
Laminated jute/jute union fabric (maybe jute blended as well)
Dyed/bleached jute or jute union fabric (maybe jute blended as well)
Non-laminated jute union fabric
Accessories for JDPs such as dyes, chemicals, and other raw material including:
- Cane/plastic/bamboo bag handles
- Jute/cotton rope
- PP/cotton/plastic/synthetic stitching thread
- PP/cotton/synthetic tape

Targets & Incentives

Year	Min. sales target per annum	Total Financial assistance receivable from NJB
Incentives per annum (if target is reached)	Operational cost per annum (if target is reached)
1	Rs.6.4 lakhs	15% of total sales capped at Rs.11.52 lakhs	15% of total sales capped at Rs.3.60 lakhs
2	Rs.6.4 lakhs	15% of total sales capped at Rs.11.52 lakhs	15% of total sales capped at Rs.3.60 lakhs
3	Rs.6.4 lakhs	12% of total sales capped at Rs.9.216 lakhs	15% of total sales capped at Rs.3.60 lakhs
4	Rs.6.4 lakhs	10% of total sales capped at Rs.7.80 lakhs	15% of total sales capped at Rs.3.60 lakhs

Raw jute sales must account for not more than 20% of total sales
Accessories sales must account for not more than 25% of total sales
Prices must be fixed as per the market rate of Jute Corporation of India (JCI)
Procurement must be made form enlisted vendors at mill gate prices with invoices

Eligibility Criteria

Entities interested in operating JRMBs under jute raw material bank scheme must satisfy certain conditions.

Bonafide Indian agencies with Indian citizen functionaries eligible to undertake commercial transactions.
Engaged in any one of the following activities in the JDP sector for a minimum of three years:
- Bulk production
- Product identification
- Skill training
- Marketing of raw materials
Annual turnover above Rs.10 lakhs for the past three financial years.
Own office space of at least 200 sq. ft in a well-connected area, with storage space, parking space, phone & internet connection, etc.
Entities that currently operate JIDCs or have operated JSCs in the past are also eligible.
PSUs, WSHGs, TRAs, CFCs, and other government-owned jute sector organisations do not need to satisfy any of these conditions and may apply directly under the scheme.

Support from NJB

To support the OAs for implementing the jute raw material bank scheme, NJB undertakes these activities:

Publicise details about JRMB
Create awareness among beneficiaries about JRMB
Connect JRMB with jute mills for procurement at steady prices
Spread information on JDPs through pamphlets, catalogues, etc.
Finance the setting up of required signboards for the JRMB

Documents Required for Proposal

The NJB will invite proposals for JRMBs. Interested entities should ensure they meet the eligibility criteria before submitting their sealed and signed proposals under jute raw material bank scheme. The format for proposal may be found at the official website of the NJB and also available below:

Documents or details that must accompany the proposal are given below:

Ownership document
PAN, IT returns, other tax details such as service tax and sales tax for the last financial year
Annual reports and audited financial statements: past three financial years
Other relevant documents like experience certificates
Recommendation from District Collector or District Magistrate
Details regarding prior experience in product design, development, production and marketing of JDPs
Any awards won for work in the jute industry
Documents to prove experience in relevant field
Certified original copies of bank statements
Any other supporting documents

Sealed proposals named on the envelope ‘Proposal for JRMB-Name of Operating agency and Location’ with attached documents must be addressed through registered post to,

The Secretary, National Jute Board
Govt. of India, Ministry of textiles
3A & 3B, Park Plaza
71, Park Street
Kolkata-700016

Process after Proposal

After submission of the proposal, the jute raw material bank scheme proceeds in the following way:

Proposals will be assessed on the following month after receiving the same, as there is no last date.
For the evaluation process, a sub-committee under Monitoring and Approval Committee (MAC) will be appointed.
After analysing the proposals, the committee may give some recommendations for changes and ask the applying agency to make a presentation.
If selected, the OA is eligible to operate JRMB for a period of one year; continuation is subject to fulfilment of physical and financial targets.
Generally, each OA is allowed to operate only one JRMB. After allocation of activities under the scheme, the OA will sign MoU with NJB.
Once the JRMBs become operational, the NJB will monitor their performance and terms of renewal through MAC chaired by Jute commissioner.
Financial assistance for operational costs and other incentives will be sanctioned upon claims attached with original bills from the OA.

The details of eligible agencies are provided below:

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Frequently Asked Questions

Common questions about Jute Raw Material Bank Scheme in India: Boosting JDPs.

The JRMB Scheme is an initiative by the National Jute Board (NJB) of India to ensure a steady supply of raw materials for jute-based products, especially for micro, small, and medium enterprises (MSMEs) in the jute sector. It aims to establish a network of raw material banks across the country, operated by designated agencies, to provide easy access to jute fibers, yarn, fabrics, and other necessary raw materials for jute product manufacturers.

The primary objectives of the JRMB Scheme are to encourage MSMEs in the jute sector to increase production of bags, handicrafts, and other jute diversified products (JDPs), ensure the availability of raw materials near production clusters, increase employment opportunities (especially for women) in the jute sector, create and sustain demand for raw jute by promoting JDPs, and build supply chains for the uninterrupted flow of jute raw materials at nominal prices.

The JRMB Scheme operates through designated agencies known as Operating Agencies (OAs). These OAs are responsible for identifying potential jute product clusters, analyzing market trends, maintaining a database of units within the clusters, collaborating with other jute organizations, supplying raw materials to beneficiaries at fair prices, and establishing e-marketing platforms for inventory tracking.

The JRMB Scheme allows for the sale of various raw materials, including raw jute for braided products, jute or jute-blended yarn, laminated or non-laminated jute/jute union fabrics (which may be blended), dyed/bleached jute or jute union fabrics, and accessories such as dyes, chemicals, bag handles, ropes, stitching threads, and tapes.

Entities interested in operating a JRMB under the scheme must be bonafide Indian agencies with Indian citizen functionaries, engaged in JDP sector activities for a minimum of three years, have an annual turnover above Rs.10 lakhs for the past three financial years, own office and storage space, and have experience in production, product identification, skill training, or marketing of raw materials in the jute sector.

Interested entities must submit sealed proposals with all required documents to the National Jute Board. These proposals are then assessed by a sub-committee under the Monitoring and Approval Committee (MAC). Selected agencies sign a Memorandum of Understanding (MoU) with the NJB and are eligible to operate a JRMB for one year, subject to the fulfillment of physical and financial targets.

The NJB supports Operating Agencies by publicizing details about JRMBs, creating awareness among beneficiaries, connecting JRMBs with jute mills for procurement at steady prices, disseminating information on JDPs through various channels, and financing the setting up of required signboards for the JRMBs.

The JRMB Scheme sets minimum annual sales targets for Operating Agencies, ranging from Rs.6.4 lakhs. If the targets are reached, the agencies receive financial assistance and incentives from the NJB, ranging from 15% to 10% of total sales, capped at varying amounts based on the year of operation.

Under the JRMB Scheme, raw jute sales must not account for more than 20% of total sales, and accessories sales must not account for more than 25% of total sales. Additionally, prices must be fixed as per the market rate of the Jute Corporation of India (JCI), and procurement must be made from enlisted vendors at mill gate prices with invoices.

Yes, PSUs, Women's Self Help Groups (WSHGs), Textile Research Associations (TRAs), Common Facility Centers (CFCs), and other government-owned jute sector organizations do not need to satisfy the eligibility criteria and can apply directly under the JRMB Scheme.