With uncertainty prevailing over the supply of jute bags due to the indefinite strike of the jute mills in West Bengal, the Centre plans to allow Food Corporation of India (FCI) and the other government procurement agencies to place orders for polymer bags for packaging of food grains.
The requirement of packing material has been estimated at 10.48 lakh bales from November 2009 to February 2010.
The Centre feels that the indefinite strike in the jute mills which has stretched for over two weeks, is likely to cause a shortfall of 3.8 lakh bales of jute bags.
The supply to the government procurement agencies by the jute industry since the beginning of the strike on December 14 has been to the tune of 40,000 bales.
Given the current circumstances, the Centre is of the view that the jute industry may not be in a position to meet the estimated requirement of the procurement agencies if 100 per cent reservation for packing food grains in jute bags is continued.
Keeping in view the public interest and to tide over the shortfall, the Centre is thinking of invoking Section 16 (1) of the Jute Packaging Materials Act of 1987.
This would exempt FCI and the other government procurement agencies from making mandatory use of jute bags and they can opt for polymer bags for packing.
The proposed relaxation for these agencies would be to the extent of 20 per cent of their total procurement.
According to a recent notification issued by the Union textiles ministry, the allocation of the exempted quantity to the various procurement agencies would be done by the ministries of consumer afars as well as food and public distribution under intimation from the textiles ministry.
The exemption would be valid for procurement and packing of food grains made up to May 31, 2010.
In order to prevent any misuse of this exemption, the exempted procurement agencies would have to furnish a return to the Jute Commissioner, indicating the details of procurement of alternative packing material.
The alternative packing material procured should conform to the specifications of Bureau of Indian Standards (BIS).
Moreover, the branding of the alternate packing bags should be strictly as per the directions of the Directorate General of Supply and Disposal (DGS&D) and the quality of the bags should conform to the norms of the department of food and public distribution.
