Calcutta, Nov 5: Sugar industry has approached the Union ministry of agriculture and textiles to allow them 20 per cent exemption from the mandatory jute packaging orders as it apprehends that the jute industry will not be able meet their demands.Sources in the industry said that the jute commissioner's office in Calcutta, had already met the representatives of the industry three times over this issue, after the formation of the new Union government.
"The office of the jute commissioner is apprehending that the industry will not be able to meet the demands of the sugar industry, which will be around 1.5 lakh tonnes during the next three months," sources said.
Even government purchase of jute sackings will increase during the next three five to six months for the rabi crop. These purchases will meet the demands of the Food Corporation of India (FCI) and certain state governments."According to the indents placed by the government, purchase of B Twill bags, which will be used for foodgrains packaging, will be around 2.22 lakh tonnes during the next six months," sources said.
"The sugar industry's demand will also seek A Twill bags. We feel that the jute industry will not be able to supply such a huge quantities," they added.
Sanjay Kajaria, chairman of the Indian Jute Mills Association, tried to clear the apprehensions of the sugar industry. "The total demand, including sugar and foodgrains will be around 4.14 lakh tonnes during the next six months. So on an average it will be 70,000 tonnes per month, which is well within the reach of the industry, whose average production is around 72,000 to 73,000 per month," he said.
According to the jute mandatory packaging orders, both sugar and foodgrains industries are bound to use only jute sackings for its packaging purposes. However, the sugar industry has requested the government to allow non-jute material for packaging purposes up to 20 per cent. Previously cement and fertiliser were also under the jurisdiction of the mandatory jute packaging, but they were exempted recently.
Even jute traders carry the same apprehension as that of the sugar industry. "The government and the sugar orders will not be spaced out. Instead there will be heavy purchases from both the consumers during the month of November, December and January. Moreover, other sorts of sackings are also needed for potatoes and pulses. During these three months there will be a shortage of jute bags," a jute goods trader said.
A section of the jute industry felt that government should have spaced out the orders properly. "There was hardly an government order during the last three months. All of a sudden it has placed such huge orders. It could have easily made some purchases during August and September. The demand would have eased out substantially," a jute mill owner said.
Reacting to it a government official said, "We are the consumers. We will decide when to purchase jute bags. Moreover, the rabi crop will be ready during December. We have already informed the industry to get themselves ready".
"How could they ask us to place the demands of the jute bags, even the before the crop is ready." he added.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.