Jute Material Packaging Act unlikely to be diluted this year

The Centre is unlikely to dilute the Jute Material Packaging Act (JPMA) this year, Union Textile Minister, Shankar Singh Vaghela, indicated on Tuesday.

He said his ministry would recommend 100 per cent reservation for jute bags in sugar and food grain packaging at the next Cabinet meeting.

The plastic industry was hoping for partial dilution of the Act this year, after the Standing Advisory Committee (SAC) had recommended to the Cabinet Committee on Economic Affairs (CCEA), the dilution of jute reservation norms by 30 per cent for grains and by 25 per cent for sugar.

However, the jute body had been garnering political support to stop the dilution.

 

Speaking at a press conference here on Tuesday, the minister said, “The dilution of JPMA will not be in the favour of jute farmers. The textiles ministry will not recommend dilution of the act to the Cabinet.”

He also called for permanent system for 100 per cent reservation of jute bags for packaging the two commodities.

At present, the JPMA act was subject to a yearly review.

The Centre has also finalised the blueprint for the revival of Khardah and Kinnison jute mills in North 24-Parganas, under National Jute Manufactures Corporation (NJMC), through private participation. The revival package has been approved by the Board for Industrial Financial Reconstruction, and bids from private parties would be invited soon, he said.

The government will retain 51 per cent stake in the mills.

Also, over the last few years the government has disbursed Rs 900 crore on VRS of about 16,000 workers in NJMC mills.