Bulk import of used gunny bags has come under the government scanner on the suspicion that these bags are being pushed into the Public Distribution System (PDS) for packaging purposes in violation of government rules.

Use of recycled bags for packing foodgrains and sugar is prohibited under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act. The recycled jute bags are being imported mostly from Thailand, apart from Malaysia, the U.S. and Jordan. This month, about 1.3 crore used bags worth Rs.30 crore have been imported through the Chennai port, the Pipavav and Nhava Sheva ports in Gujarat and Mundra in Mumbai.

“The import cost on paper is shown as Rs.20-22 per bag. However, such bags are sold at a much higher price in the domestic market,” said RTI activist Gouri Shankar Jain.

The Act mandates that jute bags supplied to government agencies must be manufactured by Indian mills, using only domestically produced raw jute. “The Act’s objective is to protect the interests of about 35 lakh farmers and 2.5 lakh workers,” said Mr. Jain.

The Union Textiles Ministry recently unearthed a major racket in the import of cheap jute bags from Nepal and Bangladesh, for supply to government agencies.

CBI probe launched

On a complaint from the Textiles Ministry, the CBI has now launched an inquiry into alleged pilferage, illegal sale and recycling of new unbranded bags supplied to government agencies, in connivance with quality assurance inspectors and middlemen.