Centre allows Punjab to bypass jute bag order

In view of the huge shortage of jute bags during the ongoing paddy season, the government has partially diluted the The Jute Packaging (Mandatory) Act, 1997.

The Union ministry of textiles has allowed the state government of Punjab an exemption from procurement of 80,000 bales of jute bags, for packing of paddy procured on or before 30-11-2008

"Beyond the date, the said exemption shall be null and void. Any packaging of food grains on or after 1.12.2008 shall be in jute bags only," the GOI order states.

The dilution is in context of a recent letter by state government of Punjab to the Union ministry of consumer affairs, food and public distribution, saying, that the arrival of paddy in the Mandis(wholesale market )of Punjab may be more than 157 lakh metric tons (MTs), which is about 15 lakh MT more than earlier estimates. In view of such a situation, the state government apprehended shortage of about 80,000 bales of jute.

 

"If gunny bags cannot be procured, than HDPE/PP Bags may be procured through open tenders as a special case, so that the procurement process of paddy is not adversely affected," the letter said. Subsequently, the ministry of consumer affairs, food and public distribution, along with jute commissioner, noted that against indents of 5.6 lakh bales placed, the actual dispatch, had been only 5.11 lakh bales. There was a shortfall of about 58,000 bales and due to higher arrival of paddy, and additional requirement of 80,000 bales.

According to the office of the jute commissioner, there was a total backlog of 2.43 lakh bales with the jute industry. The monthly capacity of jute industry is around 2.20 lakh bales. "To manufacture additional quantity, the industry needs additional time and will not be able to manufacture any additional indents before 16.11.2008. The problem has arisen mainly because of placement of bulk indents in the months of August, 2008 and September, 2008. As government of Punjab has reported higher arrival of paddy in the Mandies, Jute Industry cannot supply additional quantity at least till 16-11-2008," the jute commissioner noted.

The exemption has only been granted in case of Punjab.