Jute use order set for extension

The Union ministry of textiles is thinking of extending the time frame of mandatory jute packaging order (JPM) from one year to five years. JPM is now on year to year basis (June to June).

The present term of JPM will expire on June 2005. JPM for 4-5 years time frame might be included in the national comprehensive jute policy.

This was disclosed here by the secretary (textiles), Wajhat Habibullah.

Habibullah was here to attend the seminar on the formulation of comprehensive jute policy, organised by Jute Manufacturers Development Council.

The textile secretary said there was some uncertainty in year to year basis JPM.

The ministry would like to remove the uncertainty element by making it a regular affair till the jute sector becomes competitive.

"We should continue with this order till the jute industry becomes competitive. At least we should give them some time to become competitive and to stand in own fit,"Habibullah said.

Habibullah feels that 4-5 years time frame could be given to the sector.

"Mandatory jute packaging for food grains and food grade articles could be made a regular affair," added him.

Textile secretary even indicated that the food and allied industry might have to buy the jute packaging at a price determined by the jute sector.

Habibullah said the comprehensive jute policy would be ready by the end of December 2004.

The main objective of the policy will be to make the sector more competitive through improving productivity, modernisation, product diversification and marketing.

"The improvement of productivity is required across the sector in both agriculture and industry then only we could get desired effect," he said.

JMDC secretary Arun Bahl said a separate market strategies to be developed for domestic and export markets, so that the ratio of domestic and export markets rise from 82 :18 to 65 :35.