Jute industry opposes new procurement system

Industry argues that transition to the new system will not be a smooth affair wherein the industry may lose out

In a move unlikely to go down well with the jute industry, the Union commerce ministry has decided to abandon the three-decade old system of procuring jute bags through the Directorate General of Supplies & Disposal (DGSD).

According to the proposed change that might take effect from November 1, the jute bags are going to be sourced through the Jute Commissioner’s office. If the new system comes into force, the Jute Commissioner’s office, apart from procuring jute bags for supply to food agencies, would also issue jute production control and supply orders.

In a recent letter to textiles secretary Zohra Chatterjee, Union commerce secretary S R Rao said, “The DGSD has been procuring jute bags without any statutory backing or executive power for the past three decades. Jute bags are sensitive items for food operations and, therefore, no rate contract or tendering is allowed on the item. The Jute Commissioner is the custodian of the jute industry dealing with all jute matters, including production, pricing, supply and control.”

“The commerce ministry proposes to discontinue services of DGSD in the operation of procurement of jute bags with effect from November 1,” Rao said in the letter. The ministry felt the Jute Commissioner’s office is the only authorised office empowered to deal with these matters.

The industry has opposed the move. It argues that transition to the new system would not be smooth and the industry might lose out. The Jute Commissioner’s office, however, has welcomed the shift. It said there was no need for DGSD to procure jute bags, since the current practice was leading to wasteful expenditure through lengthy inspection of the bags.