Textiles ministry calls for third party study on jute logistics

Responding to the concerns raised by the jute industry pertaining to the supplies of jute goods, the Union textiles ministry has called for a third party study by the Directorate General of Supply and Disposal (DGS&D) to streamline logistics issues of the industry.

The textiles ministry has pointed out that the procurement of jute bags by the government procuring agencies which used to be 16-17 lakh bales per annum has now gone up to 24-25 lakh bales every year.

The ministry is taking necessary steps to ensure that the production capacity of the jute industry in the country is geared up to meet the said requirement.

Moreover, the ministry feels that the logistics, despatch and procedural system need to be geared up to overcome the prevailing bottlenecks in supplies.

Indian Jute Mills Association (IJMA), the apex body of the jute industry in the country had earlier suggested certain Terms of Reference for the third party study and the textiles ministry is in agreement with the same.

The ministry is also prepared to provide funds for implementation of the recommendations of DGS&D in case of fund constraints.

The ministry is in favour of appointing a third party assessor for the study and wants the study to be commissioned at the earliest so that the challenges of logistics and despatch of jute goods can be managed in a professional manner.

In its Terms of Reference, IJMA had suggested to examine whether staggered indenting was beneficial or rake wise orders should be allowed for the individual jute mills.

IJMA has suggested the introduction of a long-term procedure of system inspection and the need for a bilateral agreement between the Government and the other procuring agencies of jute bags. On logistics issues, IJMA has suggested DGS&D to work out a scientific model on despatch of jute goods through road and railways. It has also stressed on revising handling and branding charges of jute goods.