The Standing Advisory Committee (SAC) on Jute has recommended dilution in jute packaging order in foodgrains by five per cent to 85 per cent in the 2017-18 procurement season.
"SAC on Jute in a meeting recently with all the stakeholders has recommended dilution in Jute Packaging Material Act for foodgrains by five per cent to 85 per cent from 90 per cent in the last fiscal," jute industry sources told PTI.
The SAC, however, maintained to continue with 20 per cent mandatory jute bag packaging in sugar.
In normal course the recommendations of the SAC are adopted by the government. The jute packaging order mandates the government to ensure minimum mandatory packaging of foodgrains and sugar in jute bags.
Sources claimed that government has recommended dilution after jute mills allegedly failed to supply requisite quantity of bags in the last two years.
Food ministry had recommended to reduce mandatory packaging in jute for foodgrains should be brought down to 75 per cent.
Jute sector sources said, the West Bengal representative also conditionally accepted the Centre's suggestion to use plastic/synthetic bags instead of jute bags.
"It will help the Centre to build cases against jute industry and scrap packaging act in future," sources said.
"The industry is accused of manufacturing in an inefficient manner and possessing an inadequate capacity to supply but both are untrue," Indian Jute Mills Association officials claimed.
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