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Jute industry could face order shortage this month
May '18
Jute industry could face order shortage this month
The jute industry may face a shortage of order in May in spite of its ability to fulfil it, owing to the department of food and public distribution (DFPD)’s decision to procure 92,000 bales of plastic bags. The relaxation in the rule of mandatorily using jute bags was allowed in February this year as the jute industry estimated a shortfall in March 2018.

The rule was relaxed by the textile ministry for March 2018 in order to avoid affecting food procurement programmes. However, during a meeting held in mid-April, DFPD decided to place an order for 92,000 bales of HDPE/PP bags for Madhya Pradesh and Uttar Pradesh. These plastic bags are expected to be supplied by the end of May.

Textile secretary Anant Kumar Singh has written a letter to Ravi Kant, Union food and distribution secretary pertaining to the issue. He said in it that the jute industry can now supply additional quantity of bags and the relaxation was allowed so as to not affect the food industry due to jute industry’s inability to supply the required amount by March 31, 2018.

Singh’s letter also points out the mismatched supply projections. The total projection for 2018-19 rabi marketing season (RMS) was 16.93 lakh bales, but the total orders for bags, including the plastic bags, amount to 15.62 bales.

The Indian Jute Mills Association has said that it is now ready to supply the required amount of jute bags, according to media reports. The association added that if the order for 92,000 bales of plastic bags is not withdrawn, then a number of mills that do not receive adequate orders could close down. The industry has also communicated its concern to the Central government.

Union textile minister Smriti Irani will discuss this issue with Ram Vilas Paswan, Union consumer affairs, food and public distribution minister at a meeting to be held soon. (KD)

Fibre2Fashion News Desk – India

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