PMO seeks clarification on use of plastic bags for sugar packing

The Prime Minister's Office (PMO) has sought clarification from the textile ministry on the use of plastic bags for packing sugar in the jute year 2013-14.

The ministry had recommended using plastic bags for packing 80 per cent sugar replacing jute. PMO wanted to know why such relaxation is required when there is a built in provision for using 30 per cent plastic bags in case of emergency.

Alongside, textile ministry would also inform the office on the amount of relaxation offered to plastics for packing sugar and food grain in 2012 - 13 and up to what extent the relaxation was utilised in absolute numbers and percent terms.
 

In a note (PMO ID no. 160/31/c/1/17/2013 - ES - II) to textile ministry on October 25, V Sheshadri, director at PMO, raised the questions. The jute industry had been crying hoarse for a long time that ministry was not doing enough to implement the Jute Packaging Mandatory Act (JPMA) 1987 properly.

The sugar lobby led by plastic manufacturers have approached the Competition Commission of India (CCI) against jute millers and gunny traders. They have alleged manipulation and price rigging by jute industry and violating monopoly norms. CCI had sent probe notices to sixteen jute mills.

In 2012 - 13, the ministry had recommended use of plastic bags for packing sixty percent sugar materials and ten per cent food grains. In the current year, similar optional recommendations have also been made by the ministry. The jute industry is opposing the move. The National Fibre Policy of 2011 had recommended phasing out of JPMA in the next fifteen years, ie, by the 14th plan period.

Almost 35-40 per cent of jute bags produced is purchased by the food ministry through Food Corporation of India on behalf of different state food procuring agencies. The jute sector has the capacity to manufacture around 12 lakh tons of jute bags. The installed capacity is around 15 lakh tons.

In 2011, the jute industry had approached the Comptroller and Auditor General to refrain sugar mills from using plastic bags. On CAG's advice, the law ministry instructed the competent authority to initiate police action against erring sugar mills. Until now, no action had been taken as the government is yet to identify the competent authority.

Sugar mills had been found to be biggest flouters of JPMA. Until 2011-12 the percentage of violation was close to 70 percent. As per Section 9 of JPMA any user violating the Act is liable to be fined and prosecuted as it is a 'cognizable' offence.

A number of state food agencies like Haryana and Madhya Pradesh have already placed orders of supply of plastic bags to pack food grains in Kharif and Rabi season of 2013-14 and 2014-15. Almost nine state food procuring agencies pack food grains through FCI.

The total volume of jute trade is valued at around Rs 12,000 crore. Government purchase is in the region of Rs 5,500 crore.

The jute industry had approached Prime Minister Manmohan Singh, UPA chairperson Sonia Gandhi and Congress Vice-President Rahul Gandhi to intervene and save the industry from the deluge of plastics.