The Union food ministry has once again initiated the move for a partial dilution of compulsory jute packaging norms provided by the Jute Packaging Materials Act (JPMA) of 1987 despite the Union Cabinet in September 2010 categorically rejecting such an earlier proposal put forward by the textiles ministry.
The under secretary of the ministry K C Yadav has recently approached the textiles ministry pleading on behalf of the food ministry to relax JPMA norms for better storing of wheat and distribution in future.
According to Yadav, creating silos (structures for storing bulk materials) for storing of wheat will strengthen the Public Distribution System (PDS) and it would also benefit the food department on costs against maintenance of warehousing corporations.
It may be noted that three years back in 2008 – 09, the food ministry tried to take a similar step but it was vehemently turned down by the then textiles secretary A K Singh who found it to be contravening the government's decision.
The move is against provisions laid down in the Union Budget of 2010-11 where the Union finance minister Pranab Mukherhjee had specifically pointed out that modern storage capacity and capital investments over it would only have to be increased and met through Viability Gap Funding of warehousing corporations and private entrepreneurs.
The department of food has calculated a saving of around Rs 6.54 paise per quintal in comparison to wheat stored in warehouses.
Yadav has proposed the use of 20 lakh plastic (HDPE/PP) bags of 50 kg capacity every year for an assured movement of 0.1 million tonne of wheat, replacing jute bags.
The formula has been derived by the food department in line with the PUNGRAIN scheme taken up by the Punjab government to create four silos of 50,000 capacity each for storing two lakh tonnes of wheat.
The food department has estimated that the difference in storage charges of warehouses and silos would be met through cess and market levy reliefs.
Though the amount of HDPE/PP sacks recommended for packing of wheat from silos is less than puny in comparison to jute bags, it is really surprising how a government department could afford to override the decision of the Union cabinet of continuing with 100 per cent reservation for jute bags for food grain and sugar packing in 2010 – 11, said an industry source.
The jute industry produces 140 crore jute bags every year and wheat production is almost 180 million tonnes per annum.
