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Jute Advisory Board intervention sought to stop JPMA dilution
PTI - Kolkata

Indian Jute Mills’ Association (IJMA), the apex body of jute mills in India, has said it has sought Jute Advisory Board’s (JAB) intervention to solve impending crisis in the jute industry following dilution of compulsory packaging norms for foodgrains and sugar.

In a memorandum to JAB, the IJMA said apart from adverse effect on jute industry and its workers, the government decision to dilute the compulsory packaging norms by 20 per cent in respect of foodgrains and 25 per cent in respect of sugar will give rise to serious problems in marketing of raw jute.

“A real crisis situation will arise which has not been witnessed in the recent past as problems in marketing of raw jute will result in large scale distress sales and prices, which is already ruling below the support level with dip to still lower levels,” the IJMA memorandum said. “It is unfortunate that this situation will develop when the jute growers have put in extra efforts to produce a bumper crop,” it said.

IJMA said about six lakh metric tons of jute bags are presently consumed annually for foodgrains packaging and another two lakh metric tons for sugar.

The 20 per cent reduction in consumption level for foodgrains and 25 per cent for sugar will result in a total loss of market of 1.70 lakh metric tons. “This will force the jute mills to cut back production of jute goods and consumption of raw mill will decline by nearly 10 lakh bales,” IJMA said. IJMA said the dilution in Jute Packaging Mandatory Act ’87, which was passed to help the industry providing employment to over 20 lakh people, will give an opportunity to synthetic bags to make an entry into foodgrains and sugar packaging. As a result synthetics will occupy a large share than it deserved in normal course as there was no effective machinery for enforcement of the mandatory order, the apex body said.

“The one and the only solution to the above problems lies in reconsideration of the government’s decision for progressive dilution of the compulsory packaging norms for use of jute bags for packing foodgrains and sugar,” it said.

Following an expected bumper crop of about 115 lakh bales (105 lakh bales last year) during the current season, the total supply of raw jute was expected to touch a high of 135 lakh bales, including 17 lakh bales opening stock and import of about three lakh bales.

The situation will cause huge losses to over 14 lakh jute farmers in West Bengal, Assam, Orissa and Bihar and some North Eastern states as raw jute prices would come down significantly following reduced intakes by mills.

Jute exports to get major fillip, India bags sec gen of IJSG

India’s jute exports is set to get a big fillip with the country bagging the coveted post of first secretary general of the International Jute Study Group (IJSG), formed after the erstwhile International Jute Organisation was disbanded.

Neighbouring Pakistan, alongwith a host of other countries such as China, Japan, Indonesia, Philippines, Norway, Morocco and Nigeria is expected to join the group, set up to promote global trade in jute, later this year.

Mr T Nanda Kumar, a joint secretary in the Union ministry of textiles has been elected as the secretary general of the newly created international body at the second meeting of the council in Dhaka last month. He is expected to assume charge in August, official sources said here. India will retain the post for a three-year period.

The group, headquartered in Dhaka was set up earlier this year as a successor to the IJO to provide an effective framework for international cooperation, consultation and policy development among member countries concerning all aspects of the world jute economy.

Currently, India, Bangladesh, EU and Switzerland are members of the group, sources said adding other jute growing economies were expected to join in the course of the year. As the largest producer of jute and jute products, India is an important player in the international jute economy. By joining the group, India is expected to get the benefits of research and development in the area.

The group is intended to have a major focus on research. It will analyse and process jute trade information and statistics collected from food and agricultural organisation and other international and national institutions and private sector. While encouraging national institutions in producing member countries to improve data collection in the jute sector, the group will undertake studies related to the international jute economy.