A day after the jute industry faced flak in Parliament with Union Finance Minister Pranab Mukherjee making a statement on shortage of jute bags for foodgrains packaging, the industry said on Thursday that the problem was not due to supplies but due to improper planning at the government level.
“We are putting all our efforts to gear up supplies so that additional bags can reach their destinations by June 10,” said Indian Jute Mills Association (IJMA) chairperson Manish Poddar.
Pointing out that a failed tender for jute bags by one of the state governments had led to a demand-supply gap of around two lakh tonnes, he said the industry was putting in all efforts to plug this gap for the rabi crop season.
Former IJMA chairperson Sanjay Kajaria said the industry has adequate capacity and that the problem has to do with coordination and logistics. He described as false the clamour on the short supply of jute bags for the rabi marketing season 2012-13. He said he has already highlighted the issue in letters to Mr. Mukherjee and West Bengal Chief Minister Mamata Banerjee.
West Bengal is the biggest supplier of jute bags to ten States as well as the Food Corporation of India in each crop season. Almost 66 operating jute mills, of which 54 are in West Bengal, possess an installed capacity of around 15 lakh tonnes of jute bags. The present demand for gunny bags for foodgrains is estimated at 10 lakh tonnes. Of the total crop, 20 per cent goes to the public distribution system where jute bags are used for packaging. Around 30 per cent is sold in the open market, where recycled bags are used. The rural population locally consumes the rest.
Mr. Mukherjee on Wednesday had promised that he would do all that is possible to end the shortage of jute bags to store the procured foodgrains that are now lying in the open at some places.
The Minister, who was making a statement in the Lok Sabha on the protest made by Opposition members in the House (earlier they forced adjournment of the House for a few minutes) on the bags shortage, said construction of more warehouses and export of foodgrains were some other options being examined to meet the situation and they might take time.