Jute Raw Material Bank Scheme

What is the Jute Raw Material Bank Scheme?

The Jute Raw Material Bank Scheme is a support programme run by the National Jute Board (NJB), a statutory body under the Ministry of Textiles, to make jute raw material available to small producers at fair and stable prices. Under the scheme, Raw Material Banks are established that stock jute yarn, hessian cloth, jute fabric and other inputs and sell them in small quantities at mill-gate rates to units that make jute diversified products (JDPs).

According to the National Jute Board, small artisans, self-help groups and micro enterprises usually cannot buy directly from jute mills because mills sell in large minimum lots and require bulk orders. This leaves small producers exposed to middlemen, price fluctuation and supply shortages. The Raw Material Bank acts as a stocking and distribution point so a producer can buy just the quantity needed for a batch of bags, mats, home furnishings or handicrafts.

The scheme is best understood as institutional support, not an individual cash benefit. No money is credited to a beneficiary's account. The support takes the form of assured, affordable access to raw material, which lowers input costs and working-capital pressure for the smallest players in the jute value chain.

Who is eligible for the Jute Raw Material Bank Scheme?

Who can participate:

• Artisans and craftspeople who make jute diversified products.
• Self-help groups (SHGs) and joint liability groups working in the jute sector.
• NGOs, societies, cooperatives and producer bodies supporting jute artisans.
• Micro and small enterprises registered as MSMEs that manufacture JDPs.

Participation is through enrolment with the implementing agency that operates a Raw Material Bank in the area, or through a producer body linked to the National Jute Board.

Who cannot apply for a personal cash benefit:

• Individuals looking for a direct subsidy or grant deposited into a bank account cannot apply. The scheme does not provide one.
• Large jute mills and traders that already buy directly from the market are not the target group; the banks exist to help small producers who cannot.

Because the scheme works through banks set up in jute-producing and jute-consuming clusters, access depends on a Raw Material Bank operating in your region. Where none exists, producers can approach the National Jute Board to propose one.

What documents are required?

How to apply for the Jute Raw Material Bank Scheme

1. Identify the Raw Material Bank or implementing agency operating in your jute cluster, or contact the National Jute Board through jute.com to find the nearest one.
2. Submit your unit's registration document and member identity details, and describe the jute diversified products you make and your material needs.
3. Complete enrolment with the Raw Material Bank so your unit is recorded as an eligible buyer.
4. Once enrolled, purchase jute yarn, hessian and fabric in the quantities you need at the bank's notified mill-gate rates for each production cycle.

To propose a new Raw Material Bank where none exists, a producer body or group of artisans can write to the National Jute Board with details of the number of producers and the demand for raw material in the area.

How does the scheme help the jute sector?

The Jute Raw Material Bank Scheme sits within the National Jute Board's wider work of promoting jute diversified products and supporting artisans, alongside design development, skill training and market development activities. By keeping raw material available near production clusters at mill-gate prices, the scheme:

• Reduces the input cost and working capital that small units must lock up.
• Protects micro-producers from sharp swings in raw jute prices.
• Encourages more artisans to take up the manufacture of value-added jute goods such as shopping bags, fashion accessories and home furnishings.

Because JDPs are labour-intensive and often made by women's self-help groups in rural West Bengal, Assam, Bihar and other jute-growing states, steady access to affordable raw material directly supports livelihoods at the base of the sector.

Help and where to verify

• Official body: National Jute Board, Ministry of Textiles — jute.com
• The National Jute Board publishes scheme details, implementing-agency information and contact addresses on its official website.

Because exact rate lists, subsidy percentages and the current list of Raw Material Banks change over time and are set locally, verify the applicable rates and the nearest bank directly with the National Jute Board before planning a purchase. This guide describes the scheme's design and route of access; it does not quote a fixed rupee benefit because none is published as a universal figure.