The jute mills across the country are sore with the recommendations of the Centre’s Standing Advisory Committee to allow a dilution of up to 25 per cent in the use of jute bags for packaging foodgrains meant for government procurement.
The recommendation for a 25 per cent dilution in packaging foodgrains for government procurement was made recently at a meeting of the committee comprising of officials from the Union ministries of agriculture, food, textile and petrochemicals.
The recommendation is expected to be placed soon for approval before the Cabinet Committee on Economic Affairs of the Union government.
The standing committee has recommended a 25 per cent dilution amidst concerns of a dip in jute production in the country in the wake of the closure of eight jute mills in West Bengal and another nine jute mills in the state which were blacklisted for their low quality production.
The jute production in the country is projected at 9 million bales this fiscal and the standing committee is of the view that this level of jute production would not be adequate to meet the packaging requirements of foodgrains meant for government procurement.
Sources said the Indian Jute Mills Association (IJMA), the representative body of the jute mills association in the country has taken exception to this dilution plan of the committee. IJMA is likely to submit a petition to the Union textiles ministry soon, voicing its concerns on the issue.
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The association was also likely to approach the West Bengal government on the issue, keeping in view the impact of the dilution plan on the Indian jute industry.
According to the Jute Packaging Materials Act of 1987, food grains and sugar procured by the Food Corporation of India (FCI) and the state food procuring agencies had to be mandatory packed in jute bags up to a level of 100 per cent.