Business Standard

The ancien regime

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Business Standard New Delhi
The Cabinet has approved reverting to the use of jute bags for all packing of foodgrains and sugar, thus shutting out cheaper and more convenient plastic substitutes. That this has been done after over-ruling a recommendation to the contrary by a parliamentary standing committee, sharpens the questions that flow from the decision. The government's intention, from all appearances, is to appease the Left parties, which have a huge political stake in the labour employed in West Bengal's struggling jute industry. But packaging orders of this kind are not the norm anywhere in the world, and it should not be the task of government policy to prop up uncompetitive industries by an executive order that shuts out cheaper or more convenient substitutes. This is especially so when the jute industry can feed burgeoning demand for jute products other than gunny bags.
 
The harsh fact is that the jute goods industry has failed to keep pace with changing times, persisting with outmoded machinery and sticking to the production of conventional products that cannot hold their own in evolving markets. That is why a retrograde measure like the mandatory use of jute bags will provide only temporary life support to an industry that refuses to change its ways. It also penalises end-users, who have to incur higher costs. Moreover, both sugar and foodgrains are hygroscopic products, prone to absorbing moisture and deteriorating in quality when packed in jute bags. Sacks woven out of high-density polyethylene, on the other hand, are better suited because of their moisture resistance.
 
The government's move is also not in tune with its own National Jute Policy, enunciated last year. The policy rightly envisages positioning jute as a superior, environment-friendly natural fibre. As such, it seeks to enhance the productivity of raw jute and boost the export of diversified jute products through innovative marketing. Significantly, the two most crucial requirements of the jute sector, if it has to thrive in the changed global environment, are a diversification of product base and the upgrade of processing machinery to churn out better products. This is clear also from the fact that, while the 70-odd vintage mills manufacturing conventional products with obsolete machinery are falling sick, the large number of small-scale industries in the decentralised sector producing handicrafts, decoratives, twines, pulp and paper from jute and allied fibres and particle board from jute sticks are doing well. In fact, the use of jute for pulp and paper production alone can take care of the country's entire jute production, so the livelihood of jute growers and workers is not at issue. It has already been established that most conventional pulping techniques are suitable for jute pulping as well. Notably, Japan has shown interest in replacing its wood pulp requirement with jute pulp. This apart, jute-based geo-textiles, being increasingly used the world over for applications like separators in earthworks, drainage and linings for controlling soil erosion and establishing plant growth, can provide another avenue for the bulk consumption for jute. Policy-makers should look at such issues and not resort to regressive measures that help no one.

 
 

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First Published: Jul 17 2006 | 12:00 AM IST

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