KOLKATA - In a bid to encourage jute production, Textiles Minister Dayanidhi Maran Wednesday pushed for hiking the minimum support price paid for the golden fibre by Rs.300 per quintal, nearly 22 percent over the present Rs.1,375 paid to farmers.

“The ministry of textiles is working with the industry. Diversification is important. A hike in the minimum support price will encourage farmers to increase production,” Maran told an industry seminar here.

He also assured no futures trading will be permitted on jute at the cost of farmers, adding: “I feel that in the changed scenario we need to hAve a relook at the whole gamut of policy on jute.”

The demand for jute sacks, which was around 1.5 million bales per year about two years ago, has now risen to around 2.5 million bales annually.

Maran, who is on his first visit to West Bengal after taking over the portfolio, also spoke about the importance of the National Green Council.

“I find a necessity to constitute the National Green Council to promote research and to adopt improved practices in jute fibre to safeguard the eco-viability of the crop and protect farmers.”

Maran was also not happy about the manner in which the Rs.2,500 crore given to industry for machinery and technological upgradation in the budget, was being utilised and felt protection was the main cause for the same.

“The ministry is protecting jute bags for all agricultural products which is making the industry players little lethargic about technological upgradation.”

Under the mini-mission-IV of the Jute Technology Mission, Rs.28 crore has been provided for development of modernised machinery, and Rs.80 crore is to be allocated for subsidy to mills acquiring new and modernised machinery.

“I understand there is a bottleneck in the scheme for acquisition of machinery regarding the cap on subsidy. We have taken up the matter with ministry of finance to raise the subsidy from Rs.7 million to Rs 35 crore per mill,” he said.

“I hope the finance minister will take a positive decision on our proposal.”

Maran also said his ministry will soon take up a project worth $4 million jointly with the International Jute Study Group for testing, standardization and promotion of Jute Geo-textiles.