Imports may harm jute mills: IJMA

The jute industry is up in arms against the government over the import of jute sacks from the neighbouring countries of Nepal and Bangladesh and have threatened to stop production if it continues.

Terming the imports as a major source of worry for the Indian jute sector, Sanjay Kajaria, chairman, Indian Jute Mills Association (IJMA), said in a complaint to the Jute Commissioner's Office (JCO), "These imports are not only having an adverse effect on the raw jute rates but are also putting pressure on prices of jute goods in the domestic market."

Imported materials are commanding a bigger share with prices lower than domestic rates. IJMA has urged the government to initiate immediate steps for the regulation of import of jute bags or it would result in the closure of jute mills in India.

The industry annually produces 16 lakh tonnes of jute valued at Rs 5000 crore, of which 9 lakh tonnes goes towards manufacturing jute sacks valued at Rs 2700 crore. The remaining market goes in towards 2 lakh tonnes of exports and 5 lakh tonnes of sale of Hessian in the locals.

The post-import conditions include marking, printing and branding of jute products and regulated oil content (in percentage terms) of the product.

IJMA said that even though custom authorities are under obligation to enforce each and every condition on the imported jute goods, it is not being complied with.

On other occasions, the markings and brandings of the bags are removed after they are imported and fresh branding is done. IJMA highlighted a few court cases and judgements to prove its point.

According to IJMA, the imported jute bags are being used for packing foodgrains and sugar in total violation of the statutory reservation order under the Jute Packaging Materials Act (JPMA), 1987.