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IJMA claims jute mills can meet Govt's 2010-11 demands

21
Jul '10
As per the Union Textiles Ministry, claims made by Indian Jute Milla Association (IJMA) about the production capacity are not viable.

Jute Commissioner's Office (JCO) prepared a note which revealed that, about 70-75 percent jute mills were operating below the regulations of the Jute Manufacturer's Development Council (JMDC). This note will be presented for approval at the Cabinet Committee on Economic Affairs' (CCEA) meeting soon.

Fighting against the proposal made by the Standing Advisory Committee of the Centre for 25 percent dilution, IJMA informed that, there existed no capacity limitations and the jute industry was well-equipped to fulfill the packaging needs of the government agencies for the year 2010-11.

However, the JCO note reveals that, sacking capacity, which has been depicted by IJMA, cannot be achieved owing to machinery imbalance and holdups. More so, while IJMA claims that the jute industry has an inbuilt capacity of 1.5 million tons a year of jute bags, JCO note said that, the actual capacity was 1.18 million ton a year.

Further more, in order to support its stance for a 25 percent dilution in favour of plastic bags for the current fiscal, the Union Textiles Ministry informed that, the same was being done in the interest of the economy and that, it is in compliance with the National Jute Policy, 2005.

Fibre2Fashion News Desk - India


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