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Kohinoor Mandal

KOLKATA, Feb. 17

AFTER all the screaming, lobbying, parleying, arguments and counter-arguments in courts and elsewhere by the jute industry on the dilution of the mandatory packaging order, it is now clear that the consuming industries are yet to find a replacement for the golden fibre.

According to the Jute Commissioner, Mr S.R. Majumdar, all major procuring agencies of different State Government have continued with jute sackings because most of them are not sure of the longevity of food products in plastic bags.

``The Food Corporation of India has decided to buy plastic bags to the extent of only five per cent of their total requirements. Then they will store the foodgrains for three years and find out whether there is any deterioration in its quality,'' Mr Mazumdar told Business Line.

Similar is the situation in the sugar industry. According to sources, there is hardly any demand of plastic sackings in the sugar sector. Demand for A Twill jute bags (used only for packing sugar) is somewhat same compared to the previous year.

The jute industry had been enjoying 100 per cent mandatory packaging in foodgrain and sugar industry under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

But last year, the Union Government decided to dilute this order by 20 per cent foodgrain and 25 per cent for foodgrain and sugar for the year 2002-03.

It is scheduled for further dilution to 40 per cent and 50 per cent respectively in 2003-04.

Till date, a legal case against the dilution is still pending in Calcutta High Court. When inquired whether the dilution of mandatory orders were ineffective, Mr Mazumdar said it is too early to say so. ``Moreover, none is too sure whether foodgrains can survive in a plastic bag because there is hardly any scientific study on this subject'', he said.

If that be so, then the obvious question raised by a jute mill owner was what was the compelling need for the dilution of the order. The obvious answer was that in a free market economy there cannot be a legislation which bars an industry from selecting its own packing material.

Mr G.M. Singhvi, Chairman of the Indian Jute Mills Association, felt the situation would change once the 50-kg bags (as recommended by the International Labour Organisation) are made compulsory.

``We always had an advantage over plastic bags and we will continue to have it. However, we feel that we will lose some business once the new packaging norms are introduced,'' Mr Singhvi said.

Statistically speaking, the traditional jute products comprising sackings and hessian still hold the major share. In terms of production, its share is 80 per cent and 67 per cent in exports.

Again, despite the dilution of mandatory order, the average nation production of jute goods will remain more or less the same. In 2000-01 it was 16.25 lakh tonnes. In 2001-02, it dropped marginally to 16 lakh tonnes and in current year it is expected to be between 15.5 and 16.5 lakh tonnes.

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