Jute Raw Material Bank

Jute Raw Material Bank (JRMB) Scheme

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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 annumTotal Financial assistance receivable from NJB
Incentives per annum (if target is reached)

Operational cost per annum (if target is reached)

1

Rs.6.4 lakhs15% of total sales capped at Rs.11.52 lakhs15% of total sales capped at Rs.3.60 lakhs

2

Rs.6.4 lakhs15% of total sales capped at Rs.11.52 lakhs15% of total sales capped at Rs.3.60 lakhs

3

Rs.6.4 lakhs12% of total sales capped at Rs.9.216 lakhs15% of total sales capped at Rs.3.60 lakhs

4

Rs.6.4 lakhs10% of total sales capped at Rs.7.80 lakhs15% 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:

Application Form JRMB

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:

LIST OF AGENCIES_JRMB

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