The Hindu Business Line : Industry fears dilution of Jute Packaging Act

The Union Ministry of Food, Consumer Affairs & Public Distribution, too, has suggested that a decision on the extent of dilution of the Packaging Act may be taken by itself, i.e., the Ministry that procures the packaging material, or by the Committee of Secretaries.

Ambar Singh Roy

Kolkata, Aug 13

The Left Front’s withdrawal of support to the UPA Government at the Centre may cost the jute industry dearly, it is apprehended. The industry feels that the Centre may accept the recommendations of the Standing Advisory Committee (SAC) of the Union Ministry of Textiles and dilute the Jute Packaging Materials Act, 1987, which makes it mandatory for foodgrains and sugar to be packed in jute bags.

CCEA decision

The Cabinet Committee of Economic Affairs (CCEA) is expected to take a decision on the issue of compulsory use of jute bags for packaging foodgrains and sugar for the July 2008-June 2009 jute year. In the jute years 2006-07 and 2007-08, the SAC had recommended that reservation for packaging in jute bags be contained at 75 per cent in the case of foodgrains and 70 per cent in the case of sugar.

However, the Union Cabinet had overruled the SAC’s recommendations and decided that 100 per cent of foodgrains and sugar be packed in jute bags.

For the jute year 2008-09, the SAC has once again recommended that packaging in jute bags be reserved up to 75 per cent and 70 per cent for foodgrains and sugar, respectively.

The Union Ministry of Food, Consumer Affairs & Public Distribution, too, has suggested that a decision on the extent of dilution of the JPM Act may be taken by itself, i.e. the Ministry that procures the packaging material, or by the Committee of Secretaries.

Informed sources said the extended deadline for implementation of the Cabinet Committee recommendations for the jute year 2007-08 expires on August 15.

Earlier this year, the SAC had recommended that reservation for packaging of foodgrains and sugar in jute bags may be made for up to 75 per cent and 70 per cent, respectively.

Additionally, it had suggested that, in case of a shortage and disruption in the supply of jute packaging material, the Union Ministry of Textiles may, in consultations 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 had recommended that sugar fortified with vitamins may be exempt from the purview of the order. It had also been proposed that the strategic stock of foodgrains created by Food Corporation of India be exempted from the order.

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