The Prime Minister’s office (PMO) has sought clarification from the Union textile ministry on the use of plastic bags for packing sugar for 2013-14.
The ministry had recommended using plastic bags for packing 80% sugar, replacing jute bags. The PMO is keen to know the reason for such relaxation when there is a built in provision for using 30% plastic bags in case of emergency.
The textile ministry is also required to inform the PMO on the amount of relaxation offered to plastics for packing sugar and food grains in 2012-13 and the extent to which the relaxation was utilized in absolute numbers as well as per cent terms.
The PMO has raised these questions in a note sent to the textiles ministry on October 25.
The jute industry has been crying hoarse for a long time that the ministry was not doing enough to implement the Jute Packaging Materials Act (JPMA) 1987 properly. JPMA provides for 100 per cent reservation of sugar and food grains in jute bags by government procurement agencies.
The sugar lobby led by plastic manufacturers have approached the Competition Commission of India (CCI) against jute millers and gunny traders. They have alleged manipulation and price rigging by the jute industry and accused the industry of violating monopoly norms. CCI had sent probe notices to 16 jute mills.
In 2012-13, the ministry had recommended use of plastic bags for packing 60% sugar and 10 per cent food grains. For the current fiscal, similar optional recommendations have also been made by the ministry. The jute industry is opposing the move. The National Fibre Policy of 2011 had recommended phasing out of JPMA in the next 15 years, or by the 14th Plan period (2022-27)
Almost 40 per cent of jute bags produced is purchased by the Union food ministry through Food Corporation of India (FCI) on behalf of different state food procuring agencies. The jute sector has the capacity to manufacture around 1.2 million tonne of jute bags. The installed capacity is around 1.5 million tonne.
In 2011, the jute industry had approached the Comptroller and Auditor General of India (CAG) to refrain sugar mills from using plastic bags. On CAG’s advice, the Central law ministry instructed the competent authority to initiate police action against erring sugar mills. Until now, no action had been taken as the government is yet to identify the competent authority.
Sugar mills had been found to be biggest flouters of JPMA. Until 2011-12, the violation was close to 70 per cent. As per Section 9 of JPMA, any user violating the Act is liable to be fined and prosecuted as it is a 'cognizable’ offence.
A number of state food agencies like Haryana and Madhya Pradesh have already placed orders for supply of plastic bags to pack food grains in kharif and Rabi season of 2013-14 and 2014-15.
The total volume of jute trade is valued at around Rs 12,000 crore out of which government purchase is in the region of Rs 5500 crore.
