Short Supply Of Jute Bags By Bengal Mills Highlighted At SAC Meeting

Food grain producing states like Punjab and Haryana and procuring agencies raised the issue of short supply of jute bags by West Bengal jute mills at the Standing Advisory Committee (SAC) meeting, sources said on Thursday.

The SAC on jute, which functions under the Union Textile Ministry, has met on Wednesday to examine, consider and recommend reservation for packaging of commodities in jute bags for 2021-22.

The SAC's committee's recommendations to the government will decide whether or not the interests of jute mills and West Bengal are safeguarded.

'We were part of the first phase of the meeting and made our presentation before the committee. We assured it that with the upcoming bumper crop, mills will be able to supply 34 lakh bales to the government,' Indian Jute Mills Association chairman Raghav Gupta said.

The problems that the industry faced were highlighted by the millers, he said.

In the 2020-21 season, the industry could not supply jute bags to meet the demand due to lockdown induced disruptions, and huge crop loss because of the cyclone Amphan that led to a sharp rise in the price of raw jute, Gupta said.

About 80 per cent of jute packaging bags of the country are supplied by West Bengal as most of the mills are located in the state.

'Several states were unhappy because of the short supply. The department of food and public distribution is of view that present provisions of JPM Act should be diluted,' a source said.

Jute Packaging Material (JPM) Act says that packaging of 100 per cent food grain shall be in jute bags.

The government has already granted relaxation for use of 7.7 lakh bales of High-Density Polyethylene /polypropylene (HDPE/PP) bags for the Rabi season of 2021-22.

IJMA sources feared that the government might consider permanent dilution of JPM Act in favour of the plastics industry when the state is expecting bumper crops.

'If there is dilution, lakhs of farmers will fail to fetch remunerative prices and jute mills will face further closure. Jobs of nearly 2.5 lakh people employed by some 70 mills in the state will be under threat,' a mill source said.

The government has till the 2020-21 season retained 100 per cent reservation for packaging of food grains, and 20 per cent for sugar in jute bags subject to dilution if required.

Industry Secretary Vandana Yadav attended the SAC meeting representing the West Bengal government, sources said.

(PTI)