GM Singhvi, chairman of Indian Jute Mills Association, is confident of convincing the ministers and their secretaries the necessity of the Act. Singhvi, is also the managing director of Willard India Ltd, he spoke to The Financial Express at length on the subject. Excerpts:

On the protection given to the jute industry through the mandatory packaging orders

The mandatory packaging orders is not a gift from anyone. Instead it is an Act of the Parliament, the Jute Packaging Materials (Compulsory Uses for PackingCommodities) Act, 1987, by those members who are elected by the people of this country. The mandatory orders mentioned by this Act, is not just anyone's gift but a prescription for the betterment of the jute industry. And we must not forget that this prescription was worked out after lengthy discussions at the Parliament, where members from all parties supported it. Regarding liberalisation, I must say that the jute industry also supports it and they are ready to face any challenge from any other sector. But just for the sake of liberalisation, we cannot dishonour the Act.

On the inability to supply jute bags for packaging requirements of the fertiliser and cement industries.

No. I feel that a conspiracy has been hatched against the jute industry by vested interest groups and they are spreading rumours about the non-availability of jute bags. Let me clarify, first, there is no shortage of raw jute fibres. If cement and fertiliser units orders jute sackings we will be able to meet it. Secondly wehave not defaulted in our supplies to the government for the rabi crop. When the government orders were placed, incidentally which was doubled this year, we were surprised. However, we assured the government that the total amount will be supplied before the procurement season starts off and we have done it. We have also offered that if there is an additional requirement we will be able to supply it.

On jute bags being more expensive than polythene bags and seepages arising out of jute bags.

Apparently it may seem that jute bags are costlier than polythene bags but we must not forget that a jute bags is re-used for more than three times, which substantially reduces its initial price. Regarding seepage in jute bags, we should not paint the town red because according to the National Council for Applied Economic Research its only 0.4 per cent more than synthetics sackings.

On the industry being labelled as a sunset industry, which has neither modernised nor diversified.

The jute industry isnot a sunset industry. The recently completed research programme under the guidance of the United Nations Development a number of new products, like jute composites, jute geotextiles, jute fabrics, including denim and upholstery have been developed. Regarding modernisation, I am proud to state that the Indian jute industry is the most modern jute sector in the world. Moreover, we have developed hydrocarbon jute bags, which has been readily accepted by the western countries. The cocoa, coffee and hazelnut users, all over the world have recommended the usage of this bag. Apart from these, one should not forget the bio-degradable nature of jute and today, worldwide everyone is preferring jute over synthetics.

On the industry yearning for mandatory orders despite making progressWe need three to four years for developing the market for these new products and till that time the industry must be kept alive.

In spite of these assurances if the government wants to scrap the Act, they are free to do so but in turnit will be rewarding the cement and fertiliser industries, who have broken the law. Cement industry is not using a single jute bag and urea units are using it to the range of 30, though the Act asks for 50 per cent usage.