Centre to pay jute mills only after full payment to farmers, labourers: Irani

Kolkata: In a stride to ensure that jute farmers and labourers get their desired benefits, the Centre will make it mandatory for the mill owners to make their payments in its entirety before getting the entire payment of the government orders.

The decision of the Centre comes in the wake of a section of farmers and labourers complaining of not getting the benefits that they deserve.

"The jute industry used to get payments against the order regularly. Why are the farmers and labourers complaining about it? Now, we are making it mandatory, that if you do not pay the farmers or labourers or any way abdicate the responsibility, we will not give you the order," Union Textile minister Smriti Irani said during an interactive session organised by the Indian Chamber of Commerce.

The jute industry, according to the minister has a ready order worth Rs 5,000-5,500 crore every year (in terms of sacking). "We give such huge orders so that the jute industry stays alive. The sum is given to the jute industry in terms of order so that the farmers and labourers can get the benefits out of it," she maintained.

Irani urged the industry to go for innovation and come forward in taking new initiatives and said the Centre has been focusing on how to transform small size firms into mid-size entities. Elaborating on innovation, she touched upon technical textiles that are finding its application in automobiles, interior decoration, healthcare, industrial safety among others.

Irani said the industry should work closely with the government so that the policies framed by the latter may be implemented effectively.

Later, addressing the Annual General Meeting at the Merchants' Chamber of Commerce, she said the government has increased the import duty on some textile products to protect domestic manufacturing. "India looks at the trade war between China and the US as an opportunity and not as a challenge. India would be benefited from the trade war not only through policy intervention but also through industry practices," she added.