Centre, state clash over jute packaging ruling

With the Union government planning to continue with the Jute Packaging Materials Act (JMPA), which may spell the death knell for the state's plastic industry, the Centre and state governments are on loggerheads.

Under JMPA, packaging of food grains and sugar must be done only by jute bags.

"It is for the first time that a minister representing Gujarat has taken a decision against the industries and the economy of the state. The Union textile minister, Shankarsinh Vaghela, caving in to the pressure from the Left parties, has ruined the plastic industry by banning the use of plastic bags for packaging of food grains and sugar," said Saurabh Dalal, state minister of petroleum, on Monday.

The Union ministry of textiles has decided to continue with the JMPA. The Centre would announce its jute policy in December, which will focus on the interest of farmers, workers and mill owners.

"The law on mandatory use of jute for packaging has resulted in the closure of six lakh plastic industry units in the country. While six lakh plastic units have been closed across the country, the Act has caused over Rs 800 crore of annual loss to Gujarat alone," said Hasmukh Patel, chairman, executive council, Gujarat State Plastic Manufacturers Association (GSPMA).

"A plastic bag costs Rs 10, while a jute bag will cost Rs 30. The country will have to spend over Rs 1,900 crore more due to this move. However, he appeared unconcerned about the environmental benefits of using bags made of jute."

GSPMA has called for a repeal of the latest notification which makes the use of 100 per cent jute in packing foodgrains and 90 per cent for sugar compulsory.

"We have urged the government of Gujarat to represent the case of a large number of plastic woven sack units, likely to be hit hard by the notification," said Patel.

GSPMA has urged to revert the notification to the prior-September 28, 2004 notification under the JPM Act of 1987. Under this Act, foodgrain could be packed in sacks containing 60 per cent jute and sugar with 50 per cent jute.

An expert group on petrochemicals recently recommended doing away with the JPMA, and the state is planning to take up the suggestions made by the expert group with other concerned ministries and the planning commission to strengthen the petrochemical industry in the state.