Calcutta, Feb. 26: The jute industry expects the finance ministry to clear the proposed Rs 450-crore Jute Technology Mission Fund in the budget. The finance ministry has been sitting over the proposal for the fund for months.

Besides this, the formation of the jute board as an apex monitoring and promotional body may be included in the budget proposals. The merger of Jute Manufacturers Development Council with National Council for Jute Development for a concerted thrust to promote export as well as diversification of jute products may also be taken up.

Finance minister P. Chidambaram would make a few strategic announcements on the jute sector in the budget, said a senior official in the textile ministry.

“It is most likely that Chidambaram will make the announcements in the budget, especially keeping in mind the upcoming Assembly polls in Bengal and Assam,” said a senior official in the ministry.

The cabinet had approved the National Jute Policy last year. It included creation of a fund to take care of the needs of the farm sector, machinery development and modernisation of jute mills. Sources said the textile ministry had tried to impress upon the finance ministry about the importance of implementing the policy, as it would have a bearing on 40 million jute farmers and lakhs of workers in the east.