The Hindu : Business : Roads using jute to be laid in five States

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Thursday, Sep 29, 2005

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Roads using jute to be laid in five States

Special Correspondent

Tenders to be floated in November for Rs. 17.20 cr. pilot project

KOLKATA: Tenders for using jute in road construction will be floated by the State governments in November for launching the Rs. 17.20 crore pilot project under the Pradhan Mantri Gramin Rozgar Yojana. These roads, totalling 45 km, will be laid using jute in a large measure through ten pilot projects in West Bengal, Orissa, Assam, Chhattisgarh and Madhya Pradesh. "This will open up a big alternative market for jute," Arun Bal, Secretary, Jute Manufactures Development Council, and acting Jute Commissioner, said.

Mr. Bal said the jute industry would have to diversify if it wanted to improve its market. Exports had increased by 22 per cent between April and August 2005, but mills have been tardy in availing themselves of the incentive schemes for modernisation, he said.

In bid to tackle the crisis brewing in the jute industry over raw jute prices, the Jute Corporation of India (JCI) had decided to sell two lakh quintals of jute to mill owners at negotiated prices, JCI Chairman and Managing Director, R. C. Tewari, said.

Talking to the press at the annual general meeting of the Gunny Trades Association on Tuesday, he said the price would be around Rs. 1,300 plus premium based on quality. Agreeing that raw jute prices were abnormally high due to a low carryover, he said efforts to stabilise the market were taken after discussions with the Jute Commissioner and IJMA.

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