Government Schemes for Jute Industry in India: Complete Guide to Subsidies, Support & How to Apply

India’s jute industry, often referred to as the “Golden Fiber Industry”, plays a vital role in sustainable manufacturing and rural livelihoods. To boost innovation, employment, exports, and eco-friendly production, the Government of India has introduced several powerful schemes for jute farmers, artisans, MSMEs, exporters, and entrepreneurs.

In this blog, we explore all the latest jute subsidy schemes, how to apply, and who can benefit.


1. Jute Raw Material Bank (JRMB) Scheme

This scheme helps artisans, SHGs, and micro-units get raw jute materials like yarn, blended fabrics, ropes, and accessories at mill-gate prices—right in their locality.

🔍 Key Features:

  • ₹12 lakh/year subsidy per Jute Bank
  • Includes:
    • 5% buyer discount
    • 25% logistics reimbursement
    • ₹1.50/kg extra support in North East and hilly regions

Who Benefits:

  • Women-led SHGs
  • Jute artisans
  • Small manufacturers
  • NGOs and rural startups

How to Apply:

  1. Watch for Expression of Interest (EOI) from www.jute.com
  2. Submit proposal with infra and past experience
  3. Get inspected & approved by National Jute Board (NJB)

2. ISAPM – Incentive for Acquisition of Plant & Machinery

If you’re upgrading or setting up a jute product unit, this scheme gives capital subsidy for modern equipment and tech.

Benefits:

  • MSMEs: Up to ₹25 lakh
  • Larger units: Up to ₹40 lakh
  • Covers machines for cutting, printing, stitching, weaving, etc.

👥 Who Can Apply:

  • Registered MSMEs
  • Cooperatives
  • Exporters
  • SHGs & NGOs with manufacturing experience

📝 How to Apply:

  • Prepare detailed project report (DPR)
  • Attach quotations from machinery suppliers
  • Apply via NJB with registration documents

3. ICARE – Improved Cultivation and Advanced Retting Exercise

Designed for jute farmers, ICARE boosts fiber quality and yield through tech and training.

🔍 Key Benefits:

  • Free/bulk-subsidized certified jute seeds
  • Retting tank support for better processing
  • Drone monitoring in select districts
  • Soil health testing & advisory

👥 Who Can Apply:

  • Jute farmers in West Bengal, Bihar, Assam, Odisha, Tripura
  • In collaboration with KVKs, ICAR, and JCI

Farmers can approach their nearest Krishi Vigyan Kendra (KVK) or Jute Corporation of India (JCI) center for enrollment.


4. MDA – Market Development Assistance for Jute Products

To promote Indian jute globally, this scheme reimburses marketing and exhibition expenses.

Assistance:

  • Up to ₹10 lakh per participant annually
  • Covers:
    • Stall rental in fairs/exhibitions
    • Logistics cost for product transport
    • Publicity material

👥 Who Can Apply:

  • Jute exporters
  • Women SHGs and NGOs
  • MSME product makers

📝 Application Process:

  • Participate in NJB-approved events (India or abroad)
  • Submit expenditure bills, photos, and sales reports to NJB

5. MSP Procurement – By Jute Corporation of India (JCI)

If market prices fall below ₹5,650/quintal (2025–26 MSP), JCI purchases directly from jute farmers at fixed price.

Features:

  • Payment within 72 hours
  • Unlimited quantity accepted
  • Operates via 110 centers across jute-growing states

Farmers must carry their Jute Passbook and Aadhar-linked bank account.


6. Skill Development & EDP Training

National Jute Board also offers free training programs for youth, women, and SHGs in jute crafts.

Courses Offered:

  • Jute bag making
  • Footwear, home décor, and handicrafts
  • Value-added products

Benefits:

  • ₹200/day stipend
  • Free raw material kit
  • Certificate upon completion

How to Join:

  • Watch for updates on jute.com
  • Or visit local NJB training centers

7. Design & Product Development Support

This scheme supports innovation in jute-based designs, packaging, and eco-products.

Grant:

  • ₹3–5 lakh per designer/project
  • Collaboration with NIFT, NID, or experienced artisans

8. Freight Subsidy for JDP Exports

Exporting jute products from remote or NE regions? You can claim transport subsidy to ease shipping cost.

Support:

  • ₹2–₹5 per kg based on location/distance
  • Claimable by exporters and large SHGs

Summary Chart

Scheme NameBenefitWho Can ApplyMax Support
JRMBRaw jute supply at low costSHGs, artisans₹12 lakh/year
ISAPMMachinery subsidyMSMEs, exporters₹25–40 lakh
ICARECultivation techJute farmersSeed/retting aid
MDAExport marketing supportExporters, NGOs₹10 lakh
MSP via JCIMinimum price guaranteeFarmers₹5,650/qtl
EDP/TrainingFree jute skills trainingWomen, youth₹200/day
Product DevEco-design supportDesigners, NGOs₹5 lakh
Freight SubsidyExport logistics aidJDP exporters₹2–5/kg

Where to Apply?

All applications go through the National Jute Board (NJB) or Jute Corporation of India (JCI).

Online Portal:

  • www.jute.com – For schemes, EOI notices, and application forms

Email:

📞 Contact:

  • +91-33-2252-4083

🏛 NJB Regional Offices:

  • Kolkata (HQ), Bhubaneswar, Guwahati, New Delhi, Chennai

Final Words

These schemes are designed to empower:

  • 🇮🇳 Local artisans
  • 🧵 Women-led SHGs
  • 🌾 Jute farmers
  • 📦 Eco-product exporters
  • 🏭 Rural MSMEs

If you are in the jute business—or want to start—this is the best time to take advantage of these subsidies and training programs. Whether you need machinery, raw materials, or market support, the Government of India has your back.


💡 Need Help Applying?
Let Ahans World help you connect with the right officials, draft applications, or promote your jute business online.

📩 DM us on Instagram @ahansbags or email us today.

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