The Hindu Business Line : Sugar industry upset over 100 pc jute packaging order

"The Union Government says that it is making the packaging order mandatory since jute is biodegradable. But we think it has passed the order under pressure from the Left parties," said a sugar industry official who did not wish to be identified.

The Centre has made it mandatory to pack all the sugar produced in jute bags from August 1.

The order reverses an earlier one passed on September 28 last year stipulating that 90 per cent of the sugar produced should be packed in jute bags.

The Centre's reason for the latest decision is on ecological grounds that jute is biodegradable and thus environment-friendly.

"We are surprised that the Government has taken this decision suddenly on ideological grounds. If that is so, why have the cement and fertiliser sectors been left out from the order?" sources asked.

When contacted, Mr S.L. Jain, Director-General of the Indian Sugar Mills Association, said the Centre had taken into view the interests of four lakh jute farmers instead of the five crore sugarcane growers.

"Who will pay for this? The mandatory order may create a monopoly leading to rise in jute prices," he added.

However, the order has not had much effect on jute prices. Currently, the spot prices of B-Twills are being quoted at Rs 2,560 a quintal against Rs 2,530 on July 31. But raw jute prices are quoting at Rs 1,220 a quintal up down from Rs 1,300 at the beginning of the month.

One of the reasons the prices have been unaffected could be the increase in the area under jute this year, to 7.88 lakh hectares from 7.69 lakh hectares last year.

According to Mr Jain, jute bags that could hold 100 kg of sugar could now cost up to Rs 30 a kg in view of the order. The plastic or woven sack bags cost Rs 20 for the same quantity.

"The order is discriminatory since it specifically targets the sugar sector," he said.

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