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Friday, 7 September 2012

India declines to import jute bags from Bangladesh, Nepal

It is a correct decision to prevent smuggling of jute and jute Domestic Industry to promote
जूट की तस्करी रोकने का और स्वदेशी जूट उद्योग को बढ़ावा देने का एक सही निर्णय

India declines to import jute bags from Bangladesh, Nepal

The Government of India has turned down proposals from Nepal and Bangladesh to supply gunny bags in 2012-13 for packing sugar and food grains.
The Jute Packaging Materials Act (JPMA)-1987, a Central legislation, provides for 100 per cent mandatory reservation for jute bags for packaging of sugar and food grains.

Since both sugar and food grains are under the reserved sector, the Union law ministry has expressed reservations over import of gunny bags from Nepal and Bangladesh.
According to law ministry, there are serious technical, legal, supply and policy problems in allowing import of jute bags from Nepal. The law ministry, however, has allowed such imports in the unreserved sectors other than food grains and sugar.

Moreover, jute bag prices in India are fixed on a price formula of the Tariff Commission of 2001 and procured by Directorate General of Supplies and Disposal (DGSD) or through National Competitive Bidding (NCB). DGSD has no jurisdiction on inspecting quality of jute bags in Nepal or Bangladesh.

Says Manish Poddar, chairman, Indian Jute Mills Association (IJMA), “There was a proposal for import of gunny bags from Nepal and Bangladesh but it has been struck down by the Centre. In any case, the domestic jute industry is more than self-sufficient and is in a position to meet the requirement of packing sugar and food grains.”

While one million tonnes of jute sacks are needed to pack food grains, 0.2 million are necessary for packing sugar. The jute industry has the capacity to churn out 1.5 million tonnes of sacks and sacking capacity is almost 0.55 million tonnes higher than peak government demand.