Jute mills in tight spot over relaxation in packaging norms

The problems in the sector started in 2012-13, when the then UPA govt tweaked the Jute Packaging Materials Act

A tiff over procurement of foodgrain packaging material in the ensuing rabi season has put the jute sector in a tight spot. While the Union food, civil supplies and consumer affairs department has allowed for packaging of grain in plastic bags, the Union ministry of textiles said there was no dilution in the packaging norms. The  jute industry is worried, as it is sitting on a huge stockpile of bags.

Earlier this month, the Punjab government had requested the department to allow it to purchase 58,000 bales of 30-kg plastic bags for wheat packaging. This year, the Punjab government is expecting wheat procurement of 16.8 million tonne (mt), of which approximately 12.5 mt will be procured by the state procuring agencies and Food Corporation of India (FCI).

Beside, FCI had requested purchase of 11,440 bales of 50-kg plastic bags for foodgrain packaging. On February 18, the food and civil supplies department approved the requests of the Punjab government and FCI.

However, on February 23, the textile ministry wrote to the food and civil supplies department that it did not agree with the relaxations granted to the Punjab government and FCI for purchase of plastic bags.

The problems in the sector started in 2012-13, when the then United Progressive Alliance government tweaked the Jute Packaging Materials Act. From 100 per cent reservation (for packaging the commodity in jute bags) for sugar and foodgrain packaging under the Act, the reservation was diluted to 90 per cent for foodgrain and 20 per cent for sugar.

The proposed dilution for wheat and foodgrain packaging this year by the Punjab government and FCI will be close to two-three per cent of the total packaging.