https://indianpedia.org/index.php?action=history&feed=atom&title=Jute_Corporation_of_IndiaJute Corporation of India - Revision history2026-08-01T03:26:13ZRevision history for this page on the wikiMediaWiki 1.45.4https://indianpedia.org/index.php?title=Jute_Corporation_of_India&diff=506736&oldid=prevIrinaequalliat at 01:25, 5 May 20262026-05-05T01:25:57Z<p></p>
<p><b>New page</b></p><div>{{Short description|Textile organization in West Bengal, India}}<br />
{{Use Indian English|date=May 2014}}<br />
{{Use dmy dates|date=April 2026}}<br />
{{Infobox company<br />
| name = The Jute Corporation of India Limited<br />
| logo = JCI LOGO.jpg<br />
| logo_caption = <br />
| caption = <br />
| traded_as = <br />
| genre = <!-- Only used with media and publishing companies --><br />
| fate = <br />
| predecessor = <br />
| successor = <br />
| foundation = 1971<br />
| founder = <br />
| defunct = <!-- {{End date|df=yes|YYYY|MM|DD}} --><br />
| location_city = Patsan Bhavan, 3rd & 4th Floor [[New Town, Kolkata|New Town]], 700156, [[West Bengal]]<br />
| location_country = India<br />
| locations = <br />
| area_served = India<br />
| key_people = {{Unbulleted list|Cmde. Ajay Kumar Jolly (Retd.), Managing Director}}<br />
| industry = Jute trade<br />
| products = Jute<br />
| services = <br />
| revenue = <br />
| operating_income = <br />
| net_income = <br />
| aum = <!-- Only used with financial services companies --><br />
| assets = <br />
| equity = <br />
| owner = [[Ministry of Textiles (India)|Ministry of Textiles]], [[Government of India]]<br />
| num_employees = <br />
| parent = <br />
| divisions = <br />
| subsid = <br />
| homepage = {{URL|https://www.jutecorp.in/}}<br />
| footnotes = <br />
}}<br />
The '''Jute Corporation of India''' Limited (JCI) is [[Public sector undertakings in India|central public sector undertaking]] under the [[ownership]] of [[Ministry of Textiles (India)|Ministry of Textiles]], [[Government of India]]. It is incorporated by the Government Of India in 1971 as a price support agency with a clear mandate for the procurement of raw [[jute]] / mesta without any quantitative limit from the growers at the Minimum Support price (MSP) declared each year by the Government of India based on the recommendations made by [https://cacp.dacnet.nic.in/ Commission for Agricultural Cost & Prices] (CACP). This protects the jute growers from exploitation in the hands of the middlemen. The basic objective is not profit making but a social cause to protect the interest of about 4.00 million families engaged in farming of jute, most of whom are small/marginal farmers. Therefore, the presence of JCI in the market provides stability in the raw jute prices.<br />
<br />
==Background==<br />
Traditionally, the jute trade in India has been controlled by middlemen, with a large difference between what the mills pay and what the farmers receive. The jute industry suffers from wide fluctuations in price and supply due to rapid changes in the area cultivated and to the effects of the weather. High prices for one year may lead to over-planting and a glut the next year. Both the growers and the mills that use the crop suffer from these fluctuations. International users have shifted to synthetic fibers in part due to the uncertain supply and in part to high export duties imposed by the Indian government. The government has had to take over the operations of mills that could not compete in this difficult market.{{sfn|Kumar|1994|p=116}} The JCI was established in an attempt to stabilize prices, create a buffer stock for the mills, and ensure that farmers received a fair return.{{sfn|Kumar|1994|p=117}}<br />
<br />
==Operations==<br />
<br />
Since 1966/1967, the government has fixed the MSP for different types of jute and ''mesta'' based on recommendations from the Commission for Agricultural Cost and Prices.{{sfn|Roul|2009|p=224}} JCI was established in 1971. At first a small agency, it has steadily grown and now operates in the main jute-growing states of [[West Bengal]], [[Bihar]], [[Assam]], [[Meghalaya]], [[Tripura]], [[Odisha]], and [[Andhra Pradesh]].{{sfn|Welcome}}<br />
As of 2004, the JCI operated 171 departmental purchase centers and 69 state-level cooperative centers, and purchased from almost 250 village-level cooperatives.{{sfn|Roul|2009|p=143}}<br />
Each of the purchase centers was in hired premises and included an import shed, assortment shed, bale press shed, bale storage godown, and office.<br />
The JCI had enough total storage for 215,000 bales each weighing {{convert|180|kg}}.{{sfn|Roul|2009|p=144}}<br />
<br />
The company purchases jute at the defined minimum price when market prices drop to this level, and later sells the jute to jute mills. In times when demand is strong, there may be no need to make purchases since the price remains above the MSP.{{sfn|Public Enterprises Survey}}<br />
However, the JCI continues commercial operations in these years.{{sfn|Roul|2009|p=224}}<br />
In the 1980s, the JCI experienced difficulty in disposing of its stocks of raw jute purchased under the MSP. The Ministry of Textiles used the power vested in the Jute Commissioner under the Essential Commodities Act, 1955, to fix the price of B.Twill bags and to require private jute mills to lift raw jute from the JCI. This practice has remained in force since then.{{sfn|Roul|2009|p=216}}<br />
<br />
As the implementing agency of JTM Mini Mission-III, JCI is engaged in developing market infrastructure like Market Yards, Departmental Purchase Centers (DPCs), etc., and developing market linkage for jute growers.{{Citation needed|date=April 2025}}<br />
<br />
In recent years, JCI has been engaged in promoting alternative jute retting technologies, viz., jute decorticator, enzyme-based retting.{{Citation needed|date=April 2025}}<br />
<br />
==Issues==<br />
<br />
The JCI has made a loss in almost every year of operation since it was founded in 1971/1972.{{sfn|Roul|2009|p=224}}But in recent years, it has started making profits. The Government of India provides an annual subsidy to cover the MSP, even in years where there is no MSP outlay. In these years, the subsidy is set aside for future use.<br />
<br />
For the 2011-2012 budget year the amount granted was ₹550 million.{{sfn|Grant of subsidy}} When there is a plentiful jute crop, as in 1979-1980 and 1985–1986, the JCI has purchased large quantities at the MSP but the price in many other jute markets has fallen below the MSP. In years with low production, prices have soared even though the JCI released what it could from its stocks.{{sfn|Bhalla|Randhawa|Tyagi|1989|p=28}}<br />
<br />
A review of operations up to 1978 found that the JCI had failed to meet its objective of stabilizing price and supply. It did not have the organization it needed for effective operations, was short of funding, and was handicapped by interference in the way it operated from the Ministry. The recommendation from this review was to give the JCI a monopoly on jute purchases.{{sfn|Kumar|1994|p=117}}<br />
A 2010 audit said the company still did not provide effective price support. In the years from 2003 to 2009, the company only bought between 0.99% and 10.4% of the available jute, and covered 43% of jute trading centers. At times, the JCI stopped purchases due to a lack of storage facilities, forcing farmers to sell at lower prices to middlemen.{{sfn|Verma|Rai|2010|p=150}} The 2010 audit recommended several improvements to procedures combined with scaled-up operations to provide more effective support to the jute growers.{{sfn|Verma|Rai|2010|p=162}}<br />
<br />
It took pressure from West Bengal Chief Minister [[Mamata Banerjee]] to force JCI to purchase jute directly from farmers rather than from middlemen.{{sfn|Chakraborty|Sen|2011}} In October 2011, farmers demonstrated against the low prices offered for their produce in [[Darrang district|Bechimari]], Darrang, Assam, blocking off a road and then attacking vehicles. The police fired, killing four jute farmers. The farmers complained that a cartel of buyers was keeping prices artificially low.{{sfn|Roy|2011}} In response, the state authorities announced that the sales tax on raw jute would be dropped and a new jute mill would be established at [[Dalgaon]]. They could not, however, change the minimum price set by JCI.{{sfn|Sales tax off}}<br />
<br />
==References==<br />
;Citations<br />
{{reflist}}<br />
;Sources<br />
{{refbegin}}<br />
*{{cite book |url=https://books.google.com/books?id=ZGPhIsdbFEIC&pg=PA28<br />
|title=Implementation and Administration of Agricultural Price Policy in Asia<br />
|first1=G. S. |last1=Bhalla |first2=N. S. |last2=Randhawa |first3=D. S. |last3=Tyagi<br />
|publisher= Food & Agriculture Org. |year=1989 |isbn=9251027986}}<br />
*{{cite web<br />
|url=https://timesofindia.indiatimes.com/PDATOI/articleshow/10710227.cms<br />
|work=The Times of India<br />
|title=West Bengal govt planning to bifurcate Burdwan<br />
|date=13 November 2011 |first1=Debojyoti |last1=Chakraborty |first2=Saibal |last2=Sen<br />
|access-date=3 May 2012}}<br />
*{{cite web |ref={{harvid|Grant of subsidy}}<br />
|url=http://pib.nic.in/newsite/erelease.aspx?relid=78273<br />
|publisher=Government of India<br />
|date=7 December 2011<br />
|title=Grant of subsidy to Jute Corporation of India to maintain its infrastructure for MSP (Minimum Support Price) operations<br />
|access-date=3 May 2012}}<br />
*{{cite book |url=https://books.google.com/books?id=5xz0HGOUMNoC&pg=PA116<br />
|title=Committees and Commissions in India: 1947 - 73; a Concept's Project. 1978; Part A, Volume 16<br />
|first=Virendra |last=Kumar<br />
|publisher=Concept Publishing Company |year=1994 |isbn=8170224896}}<br />
*{{cite web |ref={{harvid|New CMD to Jute Corporation}}<br />
|url=http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article1465474.ece<br />
|work=The Hindu<br />
|title=New CMD to Jute Corporation of India<br />
|access-date=3 May 2012}}<br />
*{{cite book |ref={{harvid|Public Enterprises Survey}}<br />
|chapter-url=http://www.dpe.nic.in/sites/upload_files/dpe/files/sur0910/survey01/120.pdf<br />
|title=Public Enterprises Survey |chapter=Jute Corporation of India Ltd.<br />
|publisher=Department of Public Enterprises<br />
|year=2010<br />
|access-date=3 May 2012}}<br />
*{{cite book |url=https://books.google.com/books?id=r0gH_ID_AMcC&pg=PA143<br />
|title=The International Jute Commodity System<br />
|first=Chhabilendra |last=Roul<br />
|publisher=Northern Book Centre |year=2009 |isbn=978-8172112745}}<br />
*{{cite web<br />
|url=http://www.telegraphindia.com/1111012/jsp/frontpage/story_14613378.jsp<br />
|archive-url=https://web.archive.org/web/20111015005926/http://www.telegraphindia.com/1111012/jsp/frontpage/story_14613378.jsp<br />
|url-status=dead<br />
|archive-date=15 October 2011<br />
|title=Bechimari mourns jute martyrs - Price hitch stays unresolved<br />
|first=Dipanker |last=Roy<br />
|work=The Telegraph<br />
|date=12 October 2011 |access-date=3 May 2012}}<br />
*{{cite web |ref={{harvid|Sales tax off}}<br />
|url=http://www.telegraphindia.com/1111016/jsp/northeast/story_14628142.jsp<br />
|archive-url=https://web.archive.org/web/20111025115611/http://www.telegraphindia.com/1111016/jsp/northeast/story_14628142.jsp<br />
|url-status=dead<br />
|archive-date=25 October 2011<br />
|title=Sales tax off on raw jute<br />
|work=The Telegraph<br />
|date=16 October 2011<br />
|access-date=3 May 2012}}<br />
*{{cite web<br />
|url=http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2010_2011/Commercial/Report_no_10/chap10.pdf<br />
|publisher=Comptroller and Auditor General of India<br />
|first1=Sunil<br />
|last1=Verma<br />
|first2=Vinod<br />
|last2=Rai<br />
|date=February 2010<br />
|title=Jute Corporation of India Limited<br />
|access-date=3 May 2012<br />
}}{{Dead link|date=February 2020 |bot=InternetArchiveBot |fix-attempted=yes }}<br />
*{{cite web<br />
|ref={{harvid|Welcome}}<br />
|url=http://www.jci.gov.in:8080/jci/<br />
|title=Welcome to The Jute Corporation of India Limited<br />
|publisher=The Jute Corporation of India Limited<br />
|access-date=3 May 2012<br />
|archive-url=https://archive.today/20130412225820/http://www.jci.gov.in:8080/jci/<br />
|archive-date=12 April 2013<br />
|url-status=dead<br />
}}<br />
{{refend}}<br />
<br />
{{authority control}}<br />
<br />
[[Category:Jute industry in India]]<br />
[[Category:Commodity markets in India]]<br />
[[Category:Indian companies established in 1971]]<br />
[[Category:Government-owned companies of India]]<br />
[[Category:Companies based in Kolkata]]<br />
[[Category:Ministry of Textiles]]<br />
[[Category:1971 establishments in West Bengal]]</div>Irinaequalliat