Move to keep wheat from packaging makes Bengal cos squirm

Image
Press Trust of India Kolkata
Last Updated : Apr 21 2016 | 5:07 PM IST
The jute industry in West Bengal finds itself in a tight spot as the Committee of Secretaries (CoS) is set to discuss with the Cabinet Secretary on April 22 a proposal for exemption of wheat from the ambit of the mandatory packaging Act.
"A high-level meeting under the Cabinet Secretary is proposed tomorrow evening with the CoS on exempting wheat from the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1947," sources told PTI.
"When a key stakeholder is busy with elections and the state government cannot be consulted, such a drastic step by the Centre like taking out an important crop like wheat from the minimum mandatory packaging Act is completely unwarranted. It will hurt employment scenario severely in the state as the industry employs about 2.5 lakh people."
The size of wheat packaging in jute bags is estimated at 1.2 million bales (one bale is 180 kg), or almost 50 per cent of all government orders of gunny bags. In value terms, the market is pegged at about Rs 3,000 crore, the sources said.
The Indian Jute Mills Association (IJMA) recently wrote to the textiles secretary expressing surprise over the proposal despite 85 per cent of the total intended supply has already been provided by the mills in the rabi season of 2016-17.
In a recent communication to the Union textiles ministry, the Department of Food and Public Distribution has emphasised on an alternative in the form of high-density polyethylene (HDPE)/polypropylene (PP) bags so that alleged malpractices by a handful of errant jute millers can be checked.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 21 2016 | 5:07 PM IST

Next Story