The Hindu Business Line : Jute industry fears dilution of packaging material rules

Kolkata, May 21 The jute industry is apprehensive that the Jute Packaging Materials Act, 1987, which makes it mandatory for foodgrains to be packed in jute bags, may be diluted gradually.

The apprehension of the jute industry in this regard owes its origin to a move initiated by the Union Ministry of Consumer Affairs, Food and Public Distribution, in March this year to exempt the “foodgrains stock to be held in strategic reserve from the purview of the Jute Packaging Materials Act, 1987”.

It was decided in a meeting of the Empowered Group of Ministers (EGoM) held on March 14, 2008 regarding creation of strategic reserve of foodgrains — aggregating to five million tonnes — that “the provisions of the Jute Packaging Materials Act will not apply to stocks held in the strategic reserve to ensure longer preservation in more modern packaging”.

“Statutory order”

Subsequently, the Union Ministry of Textiles had objected to the same stating that the orders for reserving certain commodities for packaging in jute was a “statutory order”. Therefore, for issuing the order of exemption as decided by EGoM, “due process as prescribed in the JPM Act need to be followed”.

The Textiles Ministry had also sought information on “the need and justification” for exempting the strategic reserve from the provision of the JPM Act. This procedure involves consultation with the Standing Advisory Committee (SAC) and, thereafter, the decision is taken by the Union Cabinet.

Sources said that even a partial dilution of the JPM Act will adversely impact the jute industry, which is largely dependent upon government purchases of B Twill bags that are used to pack foodgrains and sugar. It is understood that the SAC, in a meeting held earlier this month, has favoured dilution of the JPM Act to the extent of 30 per cent in the case of foodgrains and 25 per cent in the case of sugar in the 2008-09 jute year (July-June). The matter will be taken up by the Union Cabinet in the first week of June.

Production count

Of the jute industry’s total annual production of 16 lakh tonnes of jute goods, gunny bags account for around 10 lakh tonnes. The market for one lakh tonne of jute bags will be lost if five lakh tonnes of foodgrains in the strategic reserve are packed in alternate packaging material. The jute industry is apprehensive that, if this is allowed, it will become a precedent for dilution of the JPM Act in the future.