The Hindu Business Line : Jute industry could get additional order

Kolkata March 22 The Department of Food and Public Distribution in the Union Ministry of Food and Public Distribution is likely to soon issue orders to the jute industry for supply of another 65,000 bales of B twill bags for packing foodgrain in the rabi season. The orders, when they materialise, is expected to act as a shot in the arm of the beleaguered jute industry, which has just come out of a 63-day industry-wide strike.

Following withdrawal of the strike on March 8, the Indian Jute Mills Association (IJMA) requested the State Government to prevail upon the Centre to cancel the indent invited by it for procurement of 1.15 lakh bales of HDPE/PP bags and ensure that orders would be placed for jute bags in lieu thereof.

Following a meeting in Delhi on March 14, it was decided that part of the indent would be cancelled and orders for 50,000 bales of B Twill jute bags would be indented for delivery within April 7. Orders to this effect were subsequently issued.

On March 20, IJMA wrote a letter to the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, drawing his attention to the issue. IJMA said when the strike was settled on March 8, the industry was assured that the State Government would prevail upon the Department of Food & Public Distribution at the Centre to cancel the indent for procurement of HDPE/PP bags and the Jute Commissioner would be advised to place orders for procurement of equivalent quantity of jute bags in place of HDPE/PP bags.

"It was then realised that jute mills were starved of orders and if the indent for procurement of HDPE/PP bags was not cancelled, the jute industry would face a real crisis, which must be avoided."

Mr Rupchand Pal, MP and Chairman of the Lok Sabha Committee on Public Undertakings, also took up the matter with the Union Ministry of Agriculture, Consumer Affairs, Food and Public Distribution. In a letter to its Minister, Mr Sharad Pawar, Mr Pal had urged "continuation of the prevailing practice of 100 per cent use of jute packaging material for foodgrain and sugar".

Industry sources expressed confidence that, following interventions by stakeholders, including the State Government, the Centre would soon cancel the said indent for procurement of the balance 65,000 bales of HDPE/PP bags and advise the Jute Commissioner to place orders for B Twill bags in place of HDPE/PP bags. Meetings in this regard are in progress in New Delhi.