A Memorandum of Understanding (MOU) has been signed on 03.8.2005 between Shri R.C. Tiwari, Chairman-cum-Managing Director, Jute Corporation of India (JCI) Ltd. Kolkata and Shri R. Poornalingam Hon’ble Secretary (Textiles), Ministry of Textiles on behalf of Government of India, in order to improve functioning and financial health of the JCI in order to make it a more vibrant organisation and to improve its turnover.

The MOU was signed as a follow up action of the decision of the Central Government to restructure the JCI so that it can gainfully utilize its vast infrastructure ( of 171 Procurement Centres in all 7 major jute growing States) for undertaking Minimum Support Price (MSP) operation and Commercial Procurements for the benefit of Jute growers.

The Government of India has approved the financial and functional restructuring of the JCI, to strengthen its financial footing so that it can play an effective role in defending MSP on the one hand and in stabilizing prices on the other hand through commercial operation.

Shri Shankersinh Vaghela, Minister of Textiles, Government of India, desired that the JCI’s presence in the raw jute market is required in the interest of Jute growers who normally suffer at the hands of big stockholders and middlemen.

Normally there is a downward trend in raw jute prices due to heavy arrivals in the beginning, of the jute crop in the markets. The commercial procurement by JCI from jute growers even when ruling price are above MSP price, will help in stabilizing raw jute prices and jute growers will get remunerative prices for their raw jute from JCI, avoiding big stockholders and middlemen in the process.

The Hon’ble Minister of Textiles has directed the JCI for procurement of raw jute throughout the crop year. The Government of India has taken this decision in favour of millions of jute growers of the country and, it will help in stabilizing the raw jute prices.