Jute Raw Material Bank Scheme

Jute Raw Material Bank Scheme is a central scheme run by the Ministry of Textiles to support jute artisans, women self-help groups (WSHGs), and small business units by giving them affordable access to raw materials. The scheme sets up local raw material banks that buy high-quality jute directly from mills, which keeps production costs low for small-scale manufacturers across India.

The banks are operated by experienced agencies that have the required storage, display, and selling space. These banks source raw material straight from jute mills and manufacturers at economical rates, so the cost stays manageable for every business. As of 2026, the scheme continues to be implemented on an annual basis by the National Jute Board under its Annual Action Plan, and applications are accepted from bonafide Indian agencies.

Jute Raw Material Bank Scheme - Introduction

Jute Raw Material Bank Scheme helps local clusters throughout India by working with experienced agencies that have the right infrastructure for storage, display, and sales. The scheme sources raw material directly from jute mills and manufacturers at economical rates so that costs remain low for the business.

By giving direct support, the scheme creates backward linkages for jute artisans, WSHGs, JDP micro and small units, and other eligible people. Raw material is now easy to get in the same locality, which helps in making jute diversified products (JDPs). The main aims of the scheme are to provide an uninterrupted supply chain, make finer-count yarn and special fabrics available, and keep quality steady so that jute products stay competitive in the market.

Highlights

Benefits

An agency that runs a bank under this scheme gets strong financial support. The support is split into a direct discount for the buyer and help with transport and running costs, so the whole chain stays affordable.

The reimbursement is paid every quarter after the agency submits its invoices, GST returns, and certified bank statements. For example, if a small entrepreneur from a local WSHG needs raw material, she can buy it at a subsidized rate through the bank, which lowers her input cost and improves her profit margin.

Eligibility

Any bonafide Indian agency that meets the following conditions can apply to run a raw material bank:

• The agency and its functionaries must be bonafide Indian agencies and Indian citizens.
• The agency should be a registered jute entrepreneur, manufacturer, exporter, merchant trader, NGO, cooperative society, federation, or PSU engaged in the production and marketing of jute diversified products for at least the last three years.
• The agency should have at least three years of experience in trading and promotion in the jute, handloom, handicrafts, or textiles sector.
• The agency must have its own office of at least 200 sq. ft with a computer, email facility, and telephone or mobile connection to run the bank.

Application Process

The application is done offline. Follow these steps to apply:

STEP 1 - Download and fill the application form (Annexure-1) available on the official website of the National Jute Board.

STEP 2 - Prepare a hard copy of the proposal and put it in a sealed cover.

STEP 3 - Number every page and get it signed by the authorized representative of the agency before submission.

Documents

Keep the following documents ready while preparing the proposal:

• Company PAN card and ID proof of the applicant.
• Proof of rental or ownership of the premises, along with GST registration details and trade license if applicable.
• Location map and interior and exterior photographs of the proposed site.
• Income tax returns and CA-certified balance sheets for the last three years.
• Work experience certificates or proof of earlier funding from government bodies, and letters of recommendation from local authorities such as the DM, Collector, DIC, or NABARD.

References

Office of the Jute Commissioner

Ministry of Textiles

FAQ's

What is Jute Raw Material Bank Scheme?

It sets up local banks in jute clusters to supply raw jute to artisans and small units at mill-gate rates, which makes production more cost-effective.

Who is eligible to run a bank?

Any bonafide Indian agency, including NGOs, manufacturers, or cooperatives with at least three years of experience, can apply.

What is the amount of financial support?

Support equals 30% of annual sales volume, capped at ₹12,00,000 per year.

Is there extra help for remote regions?

Yes, an additional ₹1.50 per kg freight subsidy is available for banks in hilly areas such as Himachal Pradesh, Uttarakhand, Jammu and Kashmir, and the North Eastern states.

What are the operational targets?

A bank should aim for around ₹40 lakh in annual sales and serve at least 20 beneficiaries each year.

How is the reimbursement received?

The agency submits its audited accounts and GST returns quarterly, and the authorities process the claims and pay the reimbursement.

What infrastructure is expected?

At least 200 sq. ft of space is required, along with standard office facilities like a computer, phone, and electricity.

What types of materials can be stocked?

Jute fibre, finer yarns, and blended or laminated fabrics can be procured from registered mills and distributed to beneficiaries.

How is the application submitted?

A sealed hard copy of the proposal is submitted with all required signatures and page numbers.

Which documents are essential for the application?

PAN, GST details, three years of audited balance sheets, and recommendations from local officials like the BDO or District Collector are required.