Jute industry irked over govt decision to buy plastic bags

Industry alleges its capacity was ignored and an artificial shortfall of 250,000 bales was created to allow use of HDPE and PP bags

The jute industry is apparently peeved with the decision of the Department of Food & Public Distribution under Union ministry of consumer affairs to buy 250,000 bales (one bale is 180 kg) of plastic bags.

The packaging requirement of food grains for the Rabi Marketing Season (RMS) in 2018-19 has been pegged at 1.69 million bales. Of this, the shortfall for jute bags was calculated at 0.25 million bales. After consultations with the industry and on the strength of recommendations by the Jute Commissioner, the textiles ministry had approved the use of high density polyethylene (HDPE) and polypropylene (PP) bags to the extent of 250,000 bales.

The jute industry, however, alleged the industry's capacity was ignored and an artificial shortfall was created.

“Although, the Food Ministry created an unwanted opportunity for synthetic (PP/HDPE) suppliers they failed to manage orders. They could only manage a puny amount (order for 23000 bales) from Punjab. However, they did not supply a single bale”, said an industry source.

The ministry is understood to have extended the RMS delivery date for supply of plastic bags by a couple of months from March and had already requested Uttar Pradesh and Madhya Pradesh to float tenders for supply of synthetic bags by May 2018.

“The move will devastate the industry as it has no supply orders in May and its whole capacity is left idle. The industry is capable of fulfilling all government requirement”, the source added.

Indian Jute Mills Association (IJMA), the apex body of the industry, has moved the Prime Minister's Office (PMO), protesting the partisan move and has sought to reverse the decision to purchase plastic bags.

“We were taken aback in the food review meeting for RMS 2018-19 and advance planning meeting for KMS (Kharif Marketing Season) 2018-19 held on April 17, 2018 when we learnt that the Department of Food shall be exercising the permission to dilute 0.25 million bales in May 2018. If the Department of Food is allowed to use the permission to purchase HDPE/PP bags during May 2018, at a time when the jute industry will have no orders in hand, it will be catastrophic for the jute economy and a number of mills will have to close down. The plight of the jute farmers shall be even worse as the price of jute fibre (lower grades) have ruled well below MSP (Minimum Support Price) levels for a large part of this jute year and this decision shall bring the price of raw jute spiralling down”, read a letter to the Prime Minister, quoting IJMA chairman Manish Poddar.

IJMA has asked for revocation of the dilution orders in favour of plastic bags and placement of fresh orders for requirement of jute bags in the RMS of 2018-19.