Govt may restrict raw jute imports

Country imported around 100,000 tonnes of jute products during 2006-07. The Centre may consider demands raised by the jute industry for imposing qualitative and quantitative restrictions on import of raw jute and jute goods from neighbouring countries Bangladesh, Nepal, Pakistan and China.

Recently, the government decided to do away with duty on raw jute and jute goods imported from these countries, drawing flak from the industry as it feels it will spell doom for the sector.

The industry has asked for qualitative restrictions on imported jute materials, especially their use in the food grains and sugar sectors, the two mainstays of the beleaguered domestic jute industry.

It has demanded checks on cheap quality imported jute bags containing more than 3 per cent non-halogenated hydrocarbons (jute batching oil or JBO). The industry says that allowing such bags in the food grain and sugar sectors will mean violation of the jute mandatory packaging act of 1987. According to the act, it is mandatory that sugar and food grain products are packed in 100 per cent jute bags.

On the quantitative aspect, the jute industry has asked the Centre that a specified amount needs to be identified by the government for import of the materials.

The domestic jute market is worth Rs 6,000 crore, which includes exports of around Rs 1,000 crore. In volume terms, the market size is about 1.7 million tonnes including 100,000 tonnes of exports. As per the industry estimates, the country imported around 100,000 tonnes of jute products under the open general license (OGL) during 2006-07.

In a recent letter addressed to A K Singh, secretary, ministry of textiles (MoT), the jute industry has sought specific labelling of imported jute bags, which are not always in conformity with BIS specifications.

Moreover, the industry says, the loophole in the "jute bags marking order" was also creating concern and it has become necessary for the imported bags to carry the name of the country of its origin. This, the industry feels, will help in curbing illegal activities and will lessen the scope of supplying cheap and non-standard materials to India.

The industry has also asked Jute Commissioner Binod Kispotta to issue a uniform order making it mandatory for imported jute bags to have the name of the country of origin printed on it.