Ministry turns the heat on jute industry

The ministry of textiles (MoT) has criticised the jute industry and the standing advisory committee (SAC) on jute for their role in recommending the dilution of Jute Packaging Mandatory Act (JPMA) of 1987.

A government note to this effect has been privately circulated among some industry representatives.

The note pointed out that the industry's heavy reliance on sacking materials is acting as a bottleneck to modernisation, creating difficulties for the jute sector. Alongside, a very small portion of the annual turnover of jute mills are being utilised for the purchase of new machines.

"This shows that the jute industry is neither eager to modernise, nor to come out of its traditional garb," it said, adding that the industry's offtake from the Technology Upgradation Fund was also abysmal.

"Due to slower pace of modernisation in the jute industry compared with what the textile sector has achieved, it is imperative that industry should rely less on traditional items such as sacking and promote the use of diversified items," the note said.

According to the ministry, the government has already initiated steps to promote the use of jute geo-textiles, which is largely used in the making of roads and dams as soil-savers.

Pilot projects promoting the use of jute geo-textiles are currently carried out in Assam, Chattisgarh, Madhya Pradesh, Orissa and West Bengal.

The note said that despite the government overtly sponsoring the use of jute geo-textiles, the industry paid scant attention and continued to stick to traditional product manufacturing such as sacking and hessian.

Moreover, the note also pointed out that the production of jute items for internal consumption and exports remained static over the last 3-4 years. Though the government continues to protect the jute industry through the JPM Act, the latter has not been able to increase production and export of jute goods.

As a further measure of protection for the industry, the directorate of sugar has been instructed by the government to make it known to sugar mills that they would have to submit monthly returns to the office of the Jute Commissioner, indicating total despatches in the domestic market, usage of jute bags and also shortfall, if any.

The government note also criticised the stand taken by SAC, recommending dilution of JPMA to the extent of 80 per cent in the case of foodgrain and 75 per cent in case of sugar packaging from the current 100 per cent.

Senior MoT officials categorically recommended there would be no dilution, and status quo would have to be maintained regarding food grain and sugar packaging. The recommendation is also in line with the National Textile Policy of 2000.

The government is decided on reviewing the JPMA occasionally in the benefit of the farmers and the industry. A recent letter received from Apex Yarn through MoT informing that Tea Board of India has allowed the use of high-density polyethylene (HDPE) bags instead of jute bags for packing tea has turned to be a major of concern for the industry and the government.

Following the Tea Board decision, apprehensions have set in that it would badly damage the prospect of jute industry in the north-east.