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Jute sector receives another blow

04
Feb '10
With the jute workers strike showing no signs of abetting, the textile industry has recommended dilution of the mandatory jute packaging act by 78 percent. Under the act, it was 100 percent mandatory to pack food grains in jute bags.

This could mean a big blow for the jute sector which had fought tooth and nail in the previous year when a proposal to dilute the act by 25 percent was mooted by the textile minister and had got the proposal repelled.

The dilution of the packaging act would help allow use of plastics instead of B-Twill jute bags for the current agriculture season and could also mean a loss of Rs 10.6 billion for the jute sector in the season.

On account of the 78 percent dilution, government agencies will instead purchase polymer bags as an alternative to the jute bags totaling up to 780,000 bales for packaging food grains and sugar.

Fibre2fashion News Desk - India


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