On Wednesday, a committee set up to recommend steps to restructure FCI discussed the use of jute bags and consequent spoilage of foodgrains, said an FCI official. The committee, headed by former Union minister Shanta Kumar, will give its final report soon.
As of now, by a Cabinet decision, HDPE/PP bags can be used only in case there is shortage in the supply of jute bags.
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FCI uses HDPE/PP bags only for packaging rice in cover and plinth. FCI's overall covered capacity stands at 33.86 million tonnes, or mt, (13 mt owned and 20.86 mt hired). It has an additional 3.03 mt of cover and plinth storage facility (2.64 mt owned and 0.39 mt hired). FCI uses HDPE/PP bags only for a small portion of the 3.03-mt cover and plinth facility.
"Cost is another driving factor behind the use of HDPE/PP bags. A recent assessment by FCI estimates HDPE/PP bags are cheaper by at least 50 per cent. So, even if we are saving Rs 2 a bag on HDPE/PP bags, the corporation will be able to save a huge amount on jute bags," the official said.
Every year, FCI procures about 60 mt of food grains. Given every bag of food grains holds 50 kg, the entity uses at least 600 million bags. If it saved Rs 2 a bag, FCI's total saving on this front would amount to Rs 120 crore a year, the official added.
Fearing rapid deterioration in jute bags, sugar mills have urged the government to liberalise the policy mandating their use.
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