Jute mills hope to bag govt orders for Rabi grain packing

The jute industry expects 180,000 tonnes government order for sacks to pack food grains procured during the Rabi season in December-February, Indian Jute Mills’ Association President Sanjay Kajaria said on Monday.

“The government will inform us about the quantum of procurement for the Rabi season on November 20, but we expect it to be around 1 million bales,” Kajaria said. Record food grain output in 2007-08 (July-June) has made the government to significantly increase its procurement for jute sacks in 2008-09.

However, he is apprehensive that the jute mills — majority of them concentrated in West Bengal — may not be able to meet the commitment as several jute workers’ unions, barring CPI (M)-affiliated Centre of Indian Trade Unions, have called for a strike from December 1 when the Rabi food grain procurement begins. Kajaria claimed a higher demand has also led to some dilution in the legislative protection available to the industry in terms of preferring jute sacks to synthetic bags.

“In kharif season, the government ordered for 1.1 million bales for June-October, four times the average offtake, but allowed use of 10,800 tonnes of synthetic sacks. This development is alarming,” Kajaria said. If the industry fails to supply the Rabi order, Kajaria fears the government could altogether stop preferring jute sacks to synthetic materials.

Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, all sugar and food grain procurement has to be done in jute sacks. But this legislation undergoes an annual review.

Synthetic bags made of high-density polyethylene are available cheaper at Rs 18 a bag against Rs 40 for a jute bag.

While higher demand has pushed up prices of B.Twill variety sacks by 25 per cent since June, fall in petrochemical prices triggered by the current economic crisis would make high-density polyethylene bags cheaper, Kajaria said.