• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Ambar Singh Roy

Kolkata, June 9

The jute industry’s apprehension of a dilution of the Jute Packaging Materials (JPM) Act, 1987 — which makes it mandatory for foodgrains and sugar to be packed in jute bags — may turn out to be true if the Centre accepts the recommendations that have been made to it in this regard by the standing advisory committee of the Union Ministry of Textiles.

The Cabinet Committee on Economic Affairs (CCEA) is slated to meet within the next few days take a decision on the issue of compulsory use of jute bags for packaging of foodgrains and sugar for the 2008-09 (July-June) jute year. Last year, following a meeting of the CCEA that was held under the Chairmanship of the Prime Minister, Dr Manmohan Singh, it was decided that jute bags must be used on a 100 per cent basis for packaging of foodgrains and sugar.

Following a meeting that was held last month, and after considering various suggestions and recommendations made by stakeholders, the standing committee has recommended a few exemptions to be prescribed under the JPM Act.

SAC has recommended that reservation for packaging of foodgrains and sugar may be made for up to 75 per cent and 70 per cent, respectively. Additionally, it has suggested that in case of a shortage and disruption in the supply of jute packaging material the Union Ministry of Textiles may, in consultation with the user ministries concerned, relax the provisions of the JPM Act up to a maximum of 20 per cent for foodgrains and sugar. It has recommended that sugar fortified with vitamins may be exempt from the purview of the order.

It has also been proposed that the strategic stock of foodgrains created by Food Corporation of India be exempted from the order. Other exemptions recommended are for small consumer packs of 25 kg and below, bulk packaging of more than 100 kg and packaging for exports.

It may be recalled, earlier in March this year, the Union Ministry of Consumer Affairs, Food and Public Distribution initiated a move that sought to exempt packaging of the foodgrains stock to be held in strategic reserve from the purview of the JPM Act. The move was opposed by the Union Ministry of Textiles, which stuck to its stand that orders, for reserving certain commodities for packaging in jute were a “statutory order” and “due process prescribed in the JPM Act needed to be followed if any exemption was to be allowed”.

More Stories on : Jute | Policy | Packaging

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dipole lends odds-on chance for surplus rain

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line