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CCEA to take decision on Jute packaging act

03
Sep '09
The Cabinet Committee on Economic Affairs (CCEA) is expected to meet to take a decision on the proposed 25 percent reduction in the use of jute bags for sugar and food-grains packaging under Jute Packaging Materials Act (JPMA) of 1987.

The act stipulates 100 percent use of jute bags for the packaging of sugar and food-grains. The CCEA meeting would prove to be significant as it has drawn criticism from the jute industry of the country.

There has been a fall in the prices of raw jute and jute items on account of the unprecedented situation that has emerged due to the indecisiveness on the reduction proposal.

The sugar industry has refrained from procuring jute bags from July of this year, amid fears of dilution, even though the new jute crop had started arriving by then.

Raw jute witnessed a price fall from Rs. 28,500 per ton on August 1 to Rs. 20,500 per ton on August 26 of the ongoing year. Similarly, the prices of B Twill jute bags (665gms) went down from Rs. 42,000 per ton on August 1 to Rs. 39,500 per ton.

The Indian Jute Mills Association (IJMA) sought the reversal of the dilution of JPMA for the benefit of more than 4 million jute cultivators and about 2.5 million jute workers.

In a last ditch effort, IJMA had sought the intervention of Prime Minister Mr. Manmohan Singh earlier this month, after approaching three Union Cabinet Ministers - Mr. Sharad Pawar, Ms. Mamata Banerjee and Mr. Pranab Mukherjee.

The dilution of 25 percent in JPMA was made by the Standing Advisory Committee (SAC) presided by the Union Textiles Secretary.

The committee was of the view that for the year 2009-10, production of raw jute would be 90 lakh bales, which was not sufficient for the government procurement agencies to pack food-grains and sugar.

Fibre2fashion News Desk - India


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