Jute industry demands reversal of dilution in packaging norms

Seeks intervention of UPA chairperson and Congress president Sonia Gandhi to reverse the decision

Shaken by the decision of the Cabinet Committee on Economic Affairs (CCEA) to dilute mandatory jute packaging norms for sugar and food grains, the jute industry has now sought the intervention of UPA chairperson and Congress president Sonia Gandhi to reverse the decision.

The industry held that the CCEA decision will adversely impact 30 million farmers and workers of West Bengal and six other jute growing states. The decision is also set to precipitate job cuts as jute mills will either shut down or cut production shifts.

“Since 1987, the Congress party has always protected the Jute Packaging Materials Act (JPMA). It is surprising that the same party has suddenly decided on lifting the protection, without a reason. Moreover, JPMA is an Act of Parliament. It is upheld by the Supreme Court as the government's executive decision since 2001. The decision to dilute JPMA in favour of plastics could be taken only on the floor of the Parliament”, Sanjay Kajaria, joint managing director, Hastings jute mill and former chairman, Indian Jute Mills Association (IJMA) wrote to the UPA chairperson.

“For 25 years, the Act (JPMA Act) functioned as a pillar against attack from the synthetic lobby for millions of workers and farmers of the jute industry. It is unfortunate that our protector is our predator”, the letter added.

On October 11, the CCEA diluted JPMA norms by 60% for sugar and 10% in case of foodgrains based on the recommendations of the Union textiles ministry. The last dilution was done in 2001.

The Union textiles ministry has recommended dilution despite the fact that the jute industry possesses the installed capacity to produce and supply jute bags more than the demand, said Kajaria.

While one million tonne of jute sacks are needed to pack foodgrains, 0.2 million are necessary for packing sugar. The jute industry has the capacity to churn out 1.5 million tonne of sacks and sacking capacity is almost 0.55 million tonne higher than peak government demand.

“Your party has always protected the jute industry and opposed the use of synthetic bags. The industry looks up to the Congress and you as their real saviour. You alone can force the CCEA to revert on its decision. Your intervention is urgently solicited in the matter as it will save the industry and millions of lives attached to it”, Kajaria stated in his letter.