The jute industry has been told to step up supply of gunny bags for the kharif season or face a dilution in the mandatory packaging order now in force to protect the one and a half century-old industry.

 

In a recent letter to the apex industry body, the Indian Jute Mills Association, the Jute Commissioner’s Office has said that the Union Food Ministry is concerned about the ‘unsatisfactory supply position of jute bags’ for the 2019-20 kharif season for packing foodgrains.

 

Procurement has already begun in some States and the Food Ministry wants relaxation in favour of HDPE (high density polypropylene) or PP bags.

 

As per the estimates given by various State governments, about 19 lakh ‘B Twill’ bags would be required for the ongoing 2019-20 kharif season. Although orders were issued for 13.1 lakh bales between June and October 2019, about 9.8 lakh bales had been inspected and passed while 3.33 lakh bales, comprising a quarter of the order, remained in backlog.

 

The Jute Commissioner’s office has sought the industry’s reply on its ability to clear this backlog within October, asking

 

The Jute Packaging Material (JPM) Act, 1987 was aimed at supporting the sector through the provision of a ready and stable market. Currently, 100% of foodgrains and 20% of sugar is mandated to be packed in gunny bags.

 

The Textiles Ministry feels that while the support of the Act was meant to protect a traditional industry, the mills had become over-dependent on this avenue for product offtake.

 

“Far from making the jute sector self-reliant, [this] has made the sector more dependent on compulsory reservation,” the Ministry said in a note. It also noted that the industry had done little to upgrade its age-old machinery and its technology. There are 89 jute mills, of which a majority are in West Bengal. The sector supports employment of about 40 lakh farmers and four lakh mill workers.