The Jute Corporation of India Ltd. (JCI) is the Official Agency of the Govt. of India for implementing the policy of providing the Minimum support Price to the jute growers and to serve as a stabilizing agency in the raw jute sector. However, whenever the prices of raw jute rules above the minimum support level the JCI undertakes commercial operations. The JCI in April 2005, completed 34 years of service to the jute growers.
Currently, JCI operates through 171 purchase centres situated in 7 jute growing States namely, West Bengal, Assam, Maghalaya, Bihar, Orissa, Andhra Pradesh and Tripura. To increase its market coverage, JCI associates co-operative societies as its agents in the MSP operations in raw jute/mesta. About 250 state level apex cooperative societies and village level societies participated in the MSP operations in raw-jute/mesta during 2004-05. However their participation was low during the jute ruled much higher than the market support price of raw-jute, JCI procured only around 5 lakh bales of raw-jute under its commercial operation till December 31, 2006.
Range of services
The Price Support Operation aims to procure raw jute from the small and marginal farmers at the minimum support prices (MSP) fixed by the Government from time to time. The Government is providing a subsidy of Rs. 30.00 crores to JCI to conduct Minimum Support Price (MSP) Operation.
The price support Operations undertaken by the corporation is the most effective measure to arrest intra-seasonal fluctuation in raw jute prices as it creates a notional buffer stock through siphoning off the excess supply of the market.
The Corporation also undertakes commercial operations, i.e., purchase of raw jute at prices above the minimum support level on commercial consideration to generate profit and to arrest downward trend in raw jute prices.
JCI also distribute certified jute sheets to jute growers, supplementing the efforts of State Government agencies. JCI, to improve the quality of raw jute, demonstrates through its centres new retting techniques developed by various research institutes.