From Commodities and Agribusiness

Jute packaging order in limbo
Press Trust of India in New Delhi

The controversial mandatory jute packaging order lapsed on June 30 as the government was unable to issue a fresh order in the wake of a stay order by the Calcutta High Court last month.
Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act of 1987, which expired on June 30, foodgrains and 90 per cent of sugar have to be mandatorily packed in jute bags. Official sources said a fresh order had not been issued due to the stay order following a petition filed by the Indian Jute Manufacturers Association.

The Indian Jute Manufacturers Association has filed a petition in the court against the recommendations of a three-member inter-ministerial committee for progressive dilution of the compulsory packaging norms for foodgrains and sugar.

With the next date of hearing scheduled for July 19, the Centre had to let the order lapse on June 30, they said. As of today, firms do not have to abide by the earlier requirement of packing 100 per cent foodgrains and up to 90 per cent sugar in jute materials.

Textiles ministry officials said a new order could be considered only after the court verdict. The jute packaging order was controversial with the plastic industry lobbying for the dilution of the Act and the jute lobby insisting that the continuation of the Act was necessary for the survival of the industry.

In order to settle the issue, the government had in August 2001 constituted a committee comprising textiles minister Kashiram Rana, agriculture minister Ajit Singh and the then food minister Shanta Kumar to look into the issue.

The committee is expected to formulate a road map for progressive dilution of compulsory packaging norms for foodgrains and sugar under the Act, to facilitate its repeal.
In its report, tabled before the Cabinet recently, the committee favoured partial dilution over a three-year period followed by a review at the end of it.

However, recommendations of the committee have been kept in abeyance following admission of a petition by the Calcutta High Court. The government had in September 2001 issued an order for 100 per cent foodgrains and 100 per cent sugar being packed in jute packaging material.
As per the order, in case of shortage in the supply of jute packaging material, then textiles ministry could, in consultation with the user ministry, relax the provisions by up to a maximum of 20 per cent.

Following a shortage in the supply of a twill bags for packaging of sugar, the government in March 2002 issued a fresh order diluting the requirement for sugar by 10 per cent.