The development brings some confidence among the jute industry that involves three lakh workers and 40 lakh farmers in West Bengal alone.
"The second report submitted recently with the Parliament is against dilution of the Jute Packaging Act," Member of the Committee and CPI(M) MP and CITU general secretary Tapan Kr Sen told PTI.
A Union Finance Ministry note in November to Textile Ministry had recommended dilution and a full phase-out of the Act within next two years.
This was done "so as to effectively safeguard the interest of the jute workers and growers and promote the jute Industry in a big way and not to dilute the provisions of reservation as contained in 'The Jute Packaging Materials (Compulsory) Use in Packaging Commodities) Act 1987", the standing committee has noted in its report.
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West Bengal Chief Minister Mamata Banerjee had recently shot off a letter to the Union Textile Minister urging not to dilute the Jute Packaging Act while highlighting the direct impact of such a step on the 43 lakh people in the state whose livelihood depends on the sector.
Farmers and jute mill workers are already facing deep trouble as industry had cut the production level. Daily deployment of workers has plummeted to about 150,000 only, indicating the the depth of the crisis.
"The situation is also affecting the jute growers as they are compelled to make distress sale of their jute produce at Rs 1,600 per quintal although the minimum support price is Rs 2,400 per quintal," Sen said.