Reservation for the jute sector through the packaging order is set to continue in line with a decision taken by the Standing Advisory Committee (SAC) of the Union Textile Ministry. The Ministry also took note of the import of jute bags and fabric from Nepal and Bangladesh, while urging the Commerce Ministry to take concomitant action of this.
The SAC is the recommendatory body in respect of the Jute Packaging Material Act, 1987 (JPMA). This legislation was enacted to protect the traditional jute sector against alternative modes of packaging such as synthetic HDPE bags. Sacking accounts for around 65 per cent of jute usage and initially foodgrains, fertiliser and sugar were reserved for jute packing.
The SAC recommended that for the Jute Year 2015-16, jute packaging is reserved for 90 per cent of production of foodgrains and 20 per cent for sugar may be continued. However, it has been mentioned that these provisions may be relaxed in case of any shortage or disruption in supply.
The minutes of the meeting taken by the SAC, circulated last week, took note of the objection to the JPMA raised by various user-sectors. It was noted that the Act, a short-term protection measure for the jute industry, had been continuing for 27 years.
The age-old jute industry is naturally happy with the order. Of the 59 jute mills in West Bengal, (where the industry is concentrated), 14 are now closed, throwing out of employment over 50,000 workmen. It now remains to be seen how many of them open their gates in anticipation of improved workload.
