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  Genesis & Growth | Activities | Range of Services| Policy Design of Govt.
Genesis and Growth of JCI        [ Click here to see the Hindi Version ]
The Jute Corporation of India Ltd. (JCI) was established by the Government of India in 1971 to function as the official agency in implementing its policy of providing minimum support price to the jute growers and to serve as stabilising agency in the raw jute sector.

From a small begining, JCI spread its network gradually establishing a large number of procurement centres in the seven major jute growing States in the country.

State

No. of Purchase Centre(s)

  West Bengal

 100

  Bihar

 20

  Assam

 25

  Meghalaya

 1

  Tripura

 5

  Orissa

 7

  Andhra Pradesh

 13
Jute Plant

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JTM (MINI MISSION III)
Activities of JCI                                                                                                                                    Top
The activities of the Corporation, as decided from time to time, are
  To conduct purchase operations to ensure maintenance of support price :
  To procure and maintain a buffer stock of fibre ( including imported fibre, if necessary );
  To conduct commercial operations in a judicious manner ;
  To import fibre, as and when necessary to supplement Indigenous availibility ;
  To export fibre ( to the extent authorised by the Government ) ;
  To process and export jute goods ; and
  To undertake export promotion measures for jute goods ;
Range of Services                                                                                                                            Top
Price Support Operation aims at procuring raw jute from the small and marginal farmers at the minimum support price (MSP) fixed by the Government of India from time to time.
Undertaking price support operation by the Corporation was found to be most effective measure to arrest inter-seasonal and intra-seasonal fluctuation in raw jute prices as it creates a notional buffer stock in siphoning the excess supply in the market and holds it till a scarcity situation as attained when this jute is supplied to jute mills so that prices do not reach an unhealthy peak and by that way both the producer and consumer are benefited.
Another important activity of the Corporation is to undertake commercial operation i.e. purchase of raw jute at prices above the minimum support level on the commercial consideration to generate profit.
The Corporation is a pioneer in establishing the BIS standards of jute of jute grading. Due to strict quality control adherence, jute packed by the Corporation fetches premium in the raw jute market.
In the international fibre market, the Corporation has established its credibility by satisfying the most fastidious overseas buyers through its built-in quality control mechanism, timely supply and prompt after-sales-services. Unfortunately, the Corporation could not make its presence felt in the overseas market on a continuing basis in view of balanced domestic supply-demand situation of raw jute. It is in the seasons of surplus, raw jute is exported.
The Corporation, as the erstwhile canalising agency for the import or sisal and manila fibres, had imported these hard fibres for the Indian Rope Industry.
Whenever inspection of raw jute prior to export is called for, JCI acts as the nominated export inspection agency of the Government.
The Corporation has entered the field of marketing of non-traditional jute products in collaboration with Jute Manufactures Development Council with inauguration of a Sales Emporium named 'SONALI' at Kolkata in April, 1989. Within a very short span of time, 'SONALI' has become a household name in Kolkata. Tremendous response received from public has encouraged many units in the decentralised sector to undertake production of diversified jute products. Following the lead given by JCI, a number of other Government emporia and private concerns have since taken up sale of such jute products.
The Corpoaration also provides service in the field of marketing research and acts as decision-support-system in the field of agriculture marketing.
Policy Decision of the Government Regarding JCI                                                                     Top
The Government of India has been fixing minimum prices of different varieties and grades of jute and mesta since 1966-67. The Jute Corporation of India Ltd. (JCI) was setup in 1971 to protect the interest of jute growers through procurement of raw jute at minimum support prices.
As per the policy decision of the Government, JCI is obliged to buy whatever quantity of jute is offered at support rates by the growers without any quantitative limit. The losses incurred by the JCI while implementing the open-ended policy of the Government of India to support the jute farmers are to be reimbursed by the Government of India. The JCI has been provided with an authorised and paid up Capital of Rs. 5 crores. As per authorisation of the Government of India, Reserve Bank of India has allowed special credit line for MSP operation by hypothecation of jute purchased by the Corporation. The margin money required to be mobilised for the Corporation for such credit has been dispensed with by giving a Government guarantee. The loss is determined after the sale of jute and the amount of loss is claimed by the Corporation for reimbursement through budgetary support.