The Hindu Business Line : Jute mills' strike feared to hit packaging orders

"The rabi season is nearing completion. There is a huge demand for jute bags. And with the jute industry lying closed for over four days, there is every possibility that it will fail to supply the jute bags. We cannot allow the foodgrains to rot in the fields," an official of Jute Commissioner's Office told Business Line.

Kolkata , Jan. 1

THE ongoing indefinite strike in the jute industry, which has entered its fourth day, may lead to a dilution in the mandatory packaging orders.

According to industry sources, there are no signs of an early end to the crisis as both sides - the mill owners and the agitating 15 central trade unions leaders - have stuck to their guns.

If the strike continues for a few more days, in all probability the jute industry will lose some protection that it currently enjoys under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

Already, the Union Ministry of Textiles has worked out a detailed plan for a gradual dilution of the mandatory packaging orders by 20 per cent and 25 per cent respectively for foodgrains and sugar.

Once the matter was notified, the Indian Jute Mills Association moved the Calcutta High Court and received a favourable judgement.

The matter is pending before the Supreme Court and is scheduled to be heard on January 6.

Sources said that Jute Commissioner's Office, a staunch opponent of such protective legislation, would cite the cause of "national interest" in its argument against the mandatory packaging orders.

According to Mr S. Mazumdar, Jute Commissioner, the total demand for jute bags for the current procurement season is 8.5 lakh tonnes, of which 2.3 lakh tonnes have been indented and 1.1 lakh tonnes already supplied by the industry.

With all the jute mills, except those of National Jute Manufactures Corp Ltd (a Central PSU) and Bharat Jute Mill (a State PSU), lying closed, the average daily production loss is to the tune of 4,000 tonnes.

More than 2.5 lakh workers in the mills are already affected by the strike.

While the workers have stuck to their demand of increased dearness allowance, the mill owners want implementation of productivity norms.

Mr Mohammed Amin, Labour Minister, has urged the mill owners and trade union leaders to solve the crisis by the end of the week but so far no date has been fixed for a meeting.