As the jute industry has been struggling to meet its commitment of delivering gunny bags in December, the Centre has directed mills to step up supply of it or face dilution of the mandatory packaging order, if the situation does not improve, sources said on Thursday.
The government issued orders for 2.54 lakh bales this month while the mills were able to supply 0.43 lakh bales of jute bags till December 10, they said.
"The Jute Commissioner has directed all the mills to utilise entire sacking capacity for manufacturing of specified quantities of jute bags under the government order. No part of capacity can be diverted for making any other type of bags," industry sources told PTI.
The Jute Packaging Material (JPM) Act, 1987 was aimed at supporting the sector through the provision of a ready market. Currently, 100 per cent of foodgrains and 20 per cent of sugar is mandated to be packed in jute bags.
If the supply situation does not improve, a dilution of mandatory jute packaging order will be recommended in favour of plastic bags, the sources said.
Food Corporation of India and other state government agencies had estimated their requirement of 19.13 lakh bales of packaging jute bags for the 2020-21 Rabi season.
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