Financial Daily from THE HINDU group of publications
Wednesday, Jul 10, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jul 10, 2002 |
|
|
|
|
|
Agri-Biz & Commodities
-
Jute Diluted packaging order will hit jute sector: IJMA Kohinoor Mandal
KOLKATA, July 9 MORE than 34 per cent of the total raw jute available in the country during the 2002-03 season will be left unutilised if the Union Government goes ahead with its proposal of diluting the mandatory packaging orders for foodgrains and sugar. This was submitted by representatives of the Indian Jute Mills Association (IJMA) at its 22nd meeting with the Jute Advisory Board held on Monday. According to an IJMA official, the farmers will be the worst hit due to the recent Union Government decision. He said that the consumption of jute mills would fall by over 10 lakh bales (of 180 kg). He urged the Union Government to reconsider the decision. The Union Textiles Ministry has recommended 25 per cent reduction in the mandatory packaging for 2002-03 (July-June) for sugar and 20 per cent for foodgrains. During 2003-04, these orders are supposed to be reduced further by 50 per cent and 40 per cent, respectively. These decisions were taken on the recommendation of the Inter-Ministerial Committee, which studied the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 in detail. The decision will be reviewed after a year. IJMA feels that raw jute production during 2002-03 will be around 115 lakh bales. Over and above this there is a carry-forward of 17 lakh bales, and approximately three bales of raw jute will be imported. So, the total availability of the golden fibre during the year will be 135 lakh bales. On an average, the annual raw jute consumption in the Indian jute mills is around 90-92 lakh bales. However, this year it is expected to be around 82 lakh bales only due to the proposed dilution of the mandatory packaging order. Consumption of raw jute in the unorganised, rural and domestic sector is expected to be around seven lakh bales. So, the total consumption of raw jute during 2002-03 will be only 89 lakh bales leaving a carryforward of 46 lakh bales, which comes to 34 per cent of the total fibre available. The total production of raw jute is also on the rise. According to IJMA figures, during 2000-01 raw jute produced was around 90 lakh bales. During 2001-02 it increased by 16 per cent to 105 lakh bales. In 2002-03, raw jute production was expected to increase further by 9.5 per cent to 115 lakh bales. "The price of raw jute will fall drastically as there will hardly be any demand for it. The farmers will be forced to go for distress sales as they will have to recover some of their costs. During 2003-04, the orders will be diluted further and it will only worsen the whole scenario,'' the IJMA official said. All the members of the Jute Advisory Board unanimously accepted this view. The board is made up of representatives from the jute industry, trade, farmers as well as from the Union and State Government.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, 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
|