PwC to conduct jute sector survey

The Jute Manufacturers Development Council (JMDC) has appointed PricewaterhouseCoopers (PwC) to do a lifecycle analysis of jute.

Addressing Gunny Trades Association's (GTA's) annual general meeting, S Majumdar, jute commissioner said that the consultancy major would be undertaking a study.

Industry sources said that lifecycle analysis apart, PwC would also look at promotion of jute and come out with eco-marks for the EU and the US markets.

Commenting on the jute industry, Majumdar said that it was likely that all surplus would be wiped out by June, next year.

Majumdar also pointed out that the quality of jute was not very good. Production of raw jute will be around 75 lakh bales. Exports was also expected to be lower than last year.

Majumdar said that external marketing assistance (EMA) may be discontinued as it was not WTO compatible. He said, after March 31, 2005, there would be uncertainty over DEPB benefits and EMA. Babulall Dhanania, president GTA said, export of jute goods fell to 2.26 lakh tonne against previous year's despatches of 2.30 lakh tonne.

The estimated value of exports was US $ 186.80 million, which was much below the textile ministry's target of US $ 250 million during 2003-04.

Dhanania also pointed out that the hedge deliveries since May 2004 were not permitted by the Forward Markets Commission (FMC). "We have approached FMC to grant permission to commence further trading the East India Jute Exchange."

Majumdar urged the members to participate in the national commodity exchange trading platform.