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Record jump of 30% in jute goods production
Bhubaneswar, June 2, 2008: A record jump of 30 per cent was registered by the jute industry in production, thanks to higher crop yield, favourable conditions and market demands. The quantum jump made manufacture reach 17.70 lakh tonnes in 2007-08 as against 13.34 lakh tonnes in 2006-07.
The highest rise was seen in sacking materials (both A.Twill and B.Twill categories), which went up to 11.43 lakh tonnes this jute year (July-June) as against 8.7 lakh tonnes last year.
Meanwhile, dispatches for internal consumption also registered a jump of about 28 per cent to 15.43 lakh tonnes in 2007-08 as compared with 12.16 lakh tonnes in 2006-07. Here too, sacking material took the maximum share with figures of 11.02 lakh tonnes in 2007-08 as against 8.54 lakh tonnes in 2006-07. Hessian followed with 2.71 lakh tonnes from the previous 2.09 lakh tonnes. In this period, CBC, yarn and Twine were 1,400 tonnes and 93,700 tonnes as against 400 tonnes and 89,200 tonnes in 2006-07.
With export market looking up between April and March, CBC, Yarns and Twines have registered a rise as maximum offtake were from US and European markets. Dispatches for exports in 2007-08 also went up by 25 per cent to 2.07 lakh tonnes from the previous year’s 1.65 lakh
tonnes.
Source: Business Standard, Kolkata
Centre may gift Assam
Rs 200-cr jute park project
Kolkata, May 21, 2008: The centre is considering a proposal to award the proposed Rs 200-
crore jute park project under the Scheme for Integrated Textile Park (SITP) to a willing Assam.
The project has an employment potential of 10,000 people, which was earlier proposed for West Bengal. What is a loss for West Bengal would end up being a gain for Assam.
Under SITP, there are currently nine textile parks and one jute park. This SITP project at national level
for the eastern region had come to West Bengal, the largest producing state, four years ago but the
state failed to allocate suitable land and apparently did not evince much interest.
Admittedly, talks were on for allotting Haringhata Dairy land worth Rs 150 crore but the process met many hurdles many
hurdles which unproductively dragged on. Ironically, the official nodal agency—Jute Manufactures’
Development Council—for the project on behalf of the Union ministry of textile also did not follow it up seriously.
Assam is keen on the project and has already marked about 100 acres for setting up the proposed park, aiming at providing infrastructure facilities to prospective local entrepreneurs in small & medium scale sectors for developing and manufacturing value-added diversified jute products (DJPs) and to create employment opportunities.
Some composite mill owners are also interested in manufacturing DJPs and other premium-fetching products, including sophisticated technical
textiles having vast market potential. In sharp contrast to jute, the cotton textile industry has already 15 such textile parks in the western and southern states but West Bengal has no such jute park.
Source: The Economic Times, Kolkata
JCI procures 14 lakh quintals raw jute
Kolkata, May 16, 2008: The Jute Corporation of India (JCI), has purchased about 14 lakh quintals of the commodity this jute year (July 2007-June 2008).
Last year, the corporation had procured about 8 lakh quintals, (4.44 lakh bales) of raw jute. They were mostly commercially bought and later, were sold at a loss to jute mills.
The raw jute purchases of the corporation are used for food grain and sugar packaging, as mandated by the Jute Packaging Materials Act (JPMA) 1987.
According to sources, unlike last year, when the JCI incurred a loss of about Rs 44 crore, this year, the corporation may fare better as the bulk purchases were made when the prices were low. With the prevailing high prices, the corporation is unlikely to make fresh purchases, said sources.
About 9-10 lakh quintals of raw jute has come under the B Twill linkage for delivery in jute mills, as of now.
Of the 14 lakh quintals procured this year, about 10 lakh quintals were bought at JCI's own centres and the rest by co-operatives.
This year, the market support price of raw jute is Rs 1,055 per quintal (TD-5 Ex-Assam).
Major purchases by the JCI was done from Malda, Murshidabad and Nadia, the traditional jute-growing areas.
Last year, the corporation had purchased raw jute for Rs 1,350 -Rs 1,400, with about 5 lakh bales commercially purchased due to high prices before the prolonged strike in jute mills.
The jute season of 2007-08 began with a carryover stock of 23 lakh bales with estimated production of 95 lakh bales and an import of 4 lakh bales.
Source: Business Standard, Kolkata
Imports of raw jute rise 91% in’ 07-08
Kolkata, May 02, 2008: Imports of raw jute and jute products during the period April 2007 to February
2008 through Petrapole border in West Bengal were 1.66 lakh tonne valued at Rs 189.67 crore and 51,640 tonne worth Rs 125.35 crore, respectively, according to land customs sources.
When compared to import figures of corresponding period 2006-07, it was 91% and higher in quantity and 36% in value in case of raw jute and 2% higher in quantity and 11% lower in value in respect of jute product.
It was 86,996 tonne at Rs 139.04 crore for raw jute and 50,703 tonne at Rs 140.93 crore for jute goods.
During February 2008, import figures of raw jute jumped to 6,671 tonne valued at Rs 8.37 crore, higher by 488% in terms of quantity and by
4-million odd farmers and about 3 lakh workers attached to the jute industry across the country.
The commencement of futures trading in raw jute by MCX from July 31 2007 witnessed a rise in fibre prices to unprecedented levels mainly due to speculative activities which is wholly unrelated to the demand-supply scenario.
The industry has approached the textile ministry to take up the matter with the department of food and public distribution and instruct FMC to stop proceedings on jute and jute products in the area of futures trade.
The stabilization of raw jute prices was essential under the National Jute Policy (NJP) as the government now wants to shift focus for the jute industry from packaging to diversified and value-added items which could occupy a place in the export markets.
According to NJP, the government is looking at a CAGR of about 15 per cent per annum for the jute industry on the quantity of exports of jute and jute products.
With price being the prime indicator and determinant factor that influences decisions of the international buyers to purchase jute goods from India, the futures trading therefore needs to be banned to ensure stable fibre prices. In fact, the government, is already contemplating banning of futures trade in some essential commodities due to abnormal price rise.
The industry has approached the textile ministry to take up the matter with the department of food and public distribution (DFPD) and instruct the Forward Market Commission (FMC) to stop proceedings on jute and jute products in the area of futures trade.
Source: Business Standard
Jute imports from Bangla may rise 78%
Bhubaneswar, March 28, 2008: Imports of jute products from Bangladesh during January-July 2008 would increase by 115 per cent in value and 78 per cent in volume compared with those for the same period last year, according to the government estimates.
Raw jute imports from the country are also likely to go up by 35 per cent in volume and 7.2 per cent in value during the period. Ever since the government has removed import duty on jute products, goods from Bangladesh are flooding the Indian market.
The domestic jute industry has been urging the government to revoke its decision if it wants to save the country's jute sector.
While imports of jute products during January-July 2007 stood at 34,208 tonnes, it will go up to 61,158 tonnes during the same period in 2008. The cost of imports will rise from Rs 79.67 lakh to Rs 1.72 crore during the period.
Imports of raw jute is expected to go up to 6.69 lakh bales from the previous 4.94 lakh bales. In value terms, the rise will be from Rs 1.25 crore to Rs 1.34
crore.
Meanwhile, exports went down from 66,000 tonnes in April-June 2006 to 60,000 in 2007. However, exports earnings went up from Rs 256 crore to Rs 258 crore during the period on rise in global prices.
Source: Business Standard, Kolkata
Number of defaulting jute mills on the rise
Kolkata, February 29, 208: Cases of defaulting jute bag supplying jute mills to departmental account, consequent to non-lifting of B.Twill-linked JCI-jute against production control orders (PCOs), are on the rise. What is more, these defaulting jute mills are understandably charging bills at officially fixed high prices for such supplies.
As a disciplinary measure against these erring jute mills under Jute & Jute Textiles Order, 2000, the jute commissioner, it is learnt, has debarred them from allocation of subsequent PCOs and issued show-cause notices to them asking reasons for such flaws on their part.
He has also advised DGS&D to recover the differences between high priced B.Twill-linked JCI-jute and non-linkage price.
Admittedly, one of the departmental buyer ---Food Corporation of India (FCI) --- is always paying lower set of prices irrespective of JCI-linked B. Twill supplies and non-linked set of prices. Set of prices for the last three months are giving signs of defaulting tendency among some jute mills for two to three months.
Understandably, the jute commissioner is contemplating to file an FIR against defaulting jute mills with local administrative authorities for criminal offences. However, such defaulting of departmental jute bag supplies is not a new phenomenon in jute industry sector.
Generally, it is witnessed that jute mills go for defaulting departmental supplies on two counts--- one for selling jute bags meant for departmental buyers at high open market prices to earn windfall profits
and other is charging high prices for departmental supplies at the cost of the JCI, particularly in a falling raw jute market.
Such a questioning practice by some mills is not only sullying the image of the jute industry as a whole but also discouraging god performing jute mills, according to a section of the industry. This is because the cost of production in case of defaulting jute mills becomes less and profit earning and competitive strength are more compared to counterparts who mind to comply with official guidelines and rules.
In other words, instead of reward for their good performance, they are being indirectly punished.
Source: The Economic Times, Kolkata
Jute Industry seeks upgrade scheme
Bhubaneswar, February 14, 2008: The beleaguered jute industry has approached the Centre to formulate an accelerated depreciation scheme (ADS) on lines with that existing for the wind energy and renewable sources of power generation, which will allow it to save on tax payable by using depreciation benefits on the investments made on modern new jute machinery.
The industry feels jute is also a renewable and bio-degradable item having almost similar features of renewable power and wind energy, and therefore should be given the benefit of ADS, keeping in view the target set by the National Jute Policy of 2005 for revamping it through modernization and technology upgradation meeting international standards.
A pre-union budget presentation recently given to A K Singh, secretary, ministry of textiles ( MoT), by the Indian Jute Mills Association (IJMA), highlights the necessity ADS along with other demands.
Of the 73 jute mills across the country over 90 per cent have their balance sheets in the red and
therefore, need to approach the government for a swift redress.
The industry proposes that companies investing in new jute mill machinery for commercial production should get a depreciation of 80 per cent of their investment in the first year.
This will imply a tax saving of approximately 25 per cent on their level of investment.
In this process, however, the government in the long run would earn taxes by helping the non-profitable companies to become profitable.
Industry estimates comfortable returns for the government by way of tax revenues from the now-ailing jute companies once ADS is introduced for this sector.
The industry has also requested the Centre to do away with the principle of cess levied as the Jute Technology Mission (JTM) has already made budgetary provisions on these lines.
MoT has been urged to take up the matter with the union ministry of finance for provisioning of cess in the budget. The Jute Manufactures Development Council would prepare a statement for the purpose.
Currently the government earns an annual Rs 45 crore by way cess collected from the jute industry. The Centre levies 1 per cent of cess on finished jute goods produced across the country.
India currently produce 16 lakh tonnes of jute goods valued at over Rs 5500 crore of which 2 lakh tonnes are earmarked for exports.
MoT has also been requested to take up the matter of advancing soft loans to the jute industry towards gratuity dues of employees and workmen enabling jute mills to reduce its cost and invest in modernization.
The matter has already been brought the notice of the West Bengal government. The jute industry has about 250 crore outstanding dues with its over 2.5 lakh workmen.
The issue, after being taken into consideration by the West Bengal government, the Reserve Bank of India (RBI) pointed out that the banks will enjoy the freedom to determine interest rates as per the market.
The industry seeks the Centre's help in arranging for soft loans at special interest rates to pay of the gratuity dues.
The request for extension of the exemption of 8 per cent central excise on jute twine from January 1 2007 to June 14 2007 has also been made by the industry. This, the industry feels would be of immense help for the member mills of IJMA and the industry at large.
Issues like mandatory eco-labeling, revision of duty draw back rates, commercial purchase and linking of commercially procured jute with B.Twill quota, speeding up of External Market Assistance (EMA) claims by JMDC on food grade jute bags and effective implementation of the Jute Packaging Mandatory (JPM) Act of 1987 alongwith the bringing back of import duty on raw jute has been included in the presentation by
IJMA
Source: Business Standard
Sarda Group
of Kolkata buys JK group jute mill in Kanpur
Kolkata, January 31, 2008 (PTI): The Sarda Group on Thursday said it has acquired a 120-tonne
capacity jute mill in Kanpur belonging to G H Singhania's JK Group at the cost of Rs 35
crore. "We have acquired JK Jute Mills in Kanpur. The mill was closed for about two and half years. We have acquired 92 per cent stake in the company and will go for an open offer shortly in the company listed in the local bourse," Sarda Group chairman Ghanshyam Sarda told reporters here today.
The total acquisition cost was Rs 35 crore, including liability totalling Rs 25
crore. With this acquisition, the group will now have 10 jute mills and the total capacity of the group will go upto 560 ton per day, he said. Sarda said he expected the mill to be be up for commercial production from May-June this year. "We will retain all the 4,500 workers associated with the mill," he said.
The Rs 2,000-crore group has mills in Bihar, Andhra Pradesh and Bangladesh. A greenfield jute mill had been under construction in
Alwar, Rajasthan with an investment of Rs 70-80 crore. "The Rajasthan mill will be up for production from March this year," Sarda said.
Swarnadhra Jute Mills
expand its production capacity
Visakhapatnam December 20, 2007: Swarnadhra Jute Mills (SJM) has lined up an investment of Rs 4
crore to expand its production capacity by 10 tonnes per day. SJM has a unit in the Pydibhimavaram industrial estate in Srikakulam district. It started production in December last year and currently produces 10 tonnes of jute twine per day.
SJM have invested Rs 9 crore to set up this unit and now
expanding its capacity to 20 tonnes of jute twine a day with an investment of Rs 4
crore. During the current year, so far, the company has achieved a turnover of Rs 8 crore and expects it to cross Rs 10 crore by the end of this fiscal. The company is aiming for a 100 per cent growth in sales turnover post expansion.
The company gets raw material from West Bengal and sells its products in Andhra Pradesh, Tamil Nadu, Kerala, Orissa and Maharashtra. SJM also plans to adds a looms division at an investment of Rs 10 crore to this unit for making gunny bags. The company expects to start work on the project in 2009-10.
Jute industry seeks
a stop to illegal licences
Kolkata, October 26, 2007: The jute industry has urged the jute commissioner to invoke Rule 7 of the Jute Packaging Materials (Compulsory Use in Packing Commodities Act, 1987 (JPMA). It is seeking the arrest of those using the Bureau of Indian standard’s (BIS) illegal marketing licence for supplying gunny bags against tenders offered by agencies in Punjab, Haryana, Orissa and two agencies in
Maharashtra.
The agencies include Punjab State Sugar Federation of Cooperative Sugar Mills Ltd, Chandigarh; Haryana State Federation of Cooperative Sugar Mills, Panchkula; Orissa State Conservative Tribal Development Corporation Ltd (kendu leaf); Maharashtra State seeds Corporation Ltd, Akola and Maharashtra State Cooperative Tribal development Corporation,
Nashik.
These units are not manufacturers of textiles as prescribed under the relevant rules of JPMA and Jute & Jute Textiles Control Order, 2000 (J & JTC) and they are only stitching units. The law defies that producers of textiles include mills producing textiles from fibre involving mechanical or electrical process with heavy-duty carding machines. In other words, units which are not using carding machines are not being granted BIS licences for participating tenders on behalf of different state agencies for supplying gunny bags.
The Indian Jute Mills association (IJMA) has recently appealed to the jute commissioner for deputing an officer to unauthorized licence holders. He will inspect their stock to ascertain that the bags stitched by them are strictly in conformity with Notification No S.O. 698(E) of
JPMA.
The notification directs manufacturers, importers, processors and traders to mark/print/brand items and verify whether their goods have more than 3% of non-halogenated hydrocarbons (jute batching oil) as mentioned in the official Notification No. S.O. 828 of August 28, 2001.
IJMA has also drawn the attention of jute commissioner to a court order in a similar case relating to Lal Chand Dharamchand & another versus jute commissioner & others, turning down the petitioner’s showcause on the jute commissioner for violating the responsibility to mark imported bags.
The order—delivered by Justice Ranjit Kumar Mitra of the Kolkata High Court in October, 2001—that ‘the jute commissioner was by the statute fully empowered by the Government of India to exercise all powers contained in the jute control order, 2000 and JPMA in respect of the larger interest of the industry and all concerned with it.”
Mitra did not find any substance in the writ petition; the petitioners being fully aware of the obligation to mark imported bags illegally violated the direction of the jute commissioner.
Source: The Economic Times
Scrapping of EMA hits local jute goods exports
Kolkata, June 26,
2007: It is a debatable issue whether the revival of External Market Assistance (EMA) is
WTO-compatible in the light of global liberalization and economic reform regime any more. The question
assumed a new dimension with jute products exports receded by over 25% after the withdrawal of EMA and fierce competition from heavily subsidised jute mills in Bangladesh.
Those in the industry feels to achieve the National Jute Policy, 2005 (NJP), target of five-fold increase in
exports, the Union government should revive the EMA. It has been withdrawn from April1,’07.
Besides, discontinuance of EMA, a number of genuine Indian exporters is also facing problems despite claiming arrear EMA.Disbursing agey Jute Manufacturers Development Council (JMDC) suspended disbursement even after accepting export documents, particularly for food grade jute products, certified by authorized agent SGS India and recognised by importing countries from February this year.
JMDC said it couldn’t pay EMA backed by SGS, if not cleared by the Union textiles ministry. However, it has disbursed EMA to
exporters on certification of Indian Jute Research & Development Association
(IJIRA).
In a recent communication to Union textile minister Shankersinh Vaghela, the Indian Jute Mills
Association (IJMA) has strongly urged for restoration of EMA. Its withdrawal is already telling on exports quantity. IJMA sources said the withdrawal will have a snowballing effect on export market and overseas buyers of Indian jute products.
Recent fluctuations in dollar-rupee conversion rates followed by the rupee’s appreciation have further produced an adverse impact on jute goods exports with costlier rupee vis-à-vis dollar. This has put the exporters of jute goods in the country in a bad shape besides rapid inroads into jute usage by cheaper
poly- sacks.
The Centre launched EMA as an export incentive to protect natural agro-base fibre like jute in ’89. It was then felt that on one hand it would provide a fillip to exports of selected items of jute and on the other it would help Indian jute goods exports to compete with Bangladesh to some extent in international markets.
In the past decade, average jute goods exports hardly exceeded 2 lakh tonnes, valued at Rs.900 crore, except a little over 3 lakh tonne-valued at Rs. 1,051 crore-in ’03-04. The decline in exports of traditional jute products like jute packaging materials has also contributed to this plight on export front. As such, diversification of obsolete mill machinery has become essential for the Indian jute industry.
In fact, India is lagging behind the target fixed in the NJP by the government. In line with the Indian Foreign Trade Policy (IFTP) a comprehensive view should be evolved for overall development and growth of jute goods exports. According to IFTP’s objective: “Trade is not the end itself, but a means to economic growth and national development.” It is feared EMA’s withdrawal would defeat this objective.
Among other factors, instances of abuse and selling substandard goods by some exporters led to the scraping of EMA. This was pointed out by former IJMA chairman Arun Bajoria to JMDC. He told JMDC that EMA was being misused by certain mill-exporters for their own benefits and also drew attention of former Union textile secretary DP Singh and additional secretary/financial adviser in the ministry of textile Asha
Swarup.
It all came to surface when the former jute commissioner drafted his speech to be delivered at a working group on goodgrade jute bags convened by the International Cocoa Council at London two years ago as a leader of Indian jute delegation for promoting exports of Indian foodgrade jute bags.
A copy of the draft was forwarded to IJMA.The note revealed that there was a quantum jump in exports of foodgrade jute bags from Rs 67.30 crore to Rs.114 crore in ’03-004 which took IJMA by surprise.
IJMA requested both the jute commissioner and JMDC to withhold EMA payments on foodgrade jute products, pending a final decision. IJMA’s letter prompted the textile ministry to direct JMDC and the jute commissioner to investigate into the matter.
Source: The Economic Times, Kolkata
Jute sector, MoT
plans for non-woven textiles a success
Kolkata: May 05, 2007: Indian jute industry
with the help of the Union ministry of Textiles (MoT) is understandably
getting encouraging results in its attempts to develop and promote value
added non-woven agro textiles which could reduce the industry’s craving for
traditional packaging materials like sacking and hessian. If produced on a
commercial scale, it could even achieve current production of sacking and
rub out the label of jute as a packaging industry.
In fact, the industry and other jute research organisation like IJIRA have
been trying to develop a number of diversified products during the last four
decades to reduce their dependency on traditional packaging materials like
sacking and hessian but could not achieve much success.
Admittedly, the industry has been able to develop diversified jute
products (DJPs) like jute yarns, hydrocarbon-free jute bags, shopping bags
and very recently geotextiles but no single items could compensate the loss
of share in sacking market both domestically and internationally.
As the Union government has, in its National Jute Policy, 2005, laid
special emphasis on developing and producing value-added DJPs and
modernisation of mill machinery, Indian jute industry has been making
sincere efforts to develop and produce such DJPs suitable for composite
mills to undertake production at commercial level with support of the Mot.
Another potential area in the textile field happens to be non-woven agro
textiles where other non-jute fibres including plastics have already
achieved remarkable progress. According to jute experts there is enough
scope for jute also. Non-woven jute products at present are made mainly of
waste material like felts and produced by an archaic process with obsolete
technology.
But such non-woven jute can hardly serve the purpose of quality required
for modern application in agriculture where there exists huge market and
immense possibilities in developed countries particularly in Europe.
The project submitted by him aims at developing and marketing non-woven
jute for technical textiles like agrotex for arresting weeds in costly crop
fields. According to experts in agrotex sector, estimated market size is
nearly 200 million square meters in Europe alone. Currently, the plastic
sheet dominates the market but jute sheets have a good chance to replace it
if made available at competitive prices. To achieve it, he suggests setting
up a modern pilot non-woven plant at a total cost of Rs 4.8 crore and offers
his mill and machinery unit along with NCJD, the official wing of MoT for
development of DJPs.
It is proposed that the ministry would provide funds for the site,
building and imports of machinery, consultation charges of export
organisations for development and market promotion of the products.
Source: The Economic Times
Gunny prices
decline on lack of govt buying
Kolkata: April 17, 2007
Kolkata gunny market ruled easier last week in the absence of department
buying of jute bags by the government and poor demand in open market.
Sellers offered their goods but the genuine buyer was scared. In an
unwilling market, even a small offer tended to depress prices out of
proportion.
Standard B.Twill prices declined further to Rs 29,500.00 per metric tonne
from the previous level of Rs 31,000.00 per metric tonne due to selling
pressure. In line, hessian prices were also quoted marginally lower at Rs
43,000.00. Losing a ground of Rs 500.00 from previous week’s level. The
volume of transactions was restricted and the closing undertone hesitant.
As regards the departmental purchases of jute bags by the Union government,
the office of the Jute Commissioner issued production control order for a
total of over 3.5 lakh bales so far. These jute bags of 50 kg were required
to meet packaging requirement of rabi food grains procurement by FCI and
state agencies. The quantity of production control orders issued by the Jute
Commissioner in consultation with DGS&D and were required to be delivered
within April 15, 2007. It was understood that the supplying mills had
already completed the delivery before the stipulated deadline.
In fact, there was no backlog left at the end of manufacturing and mills
were now starving of order. This was all the more disturbing for them as
they already returned to their normal production level after the recent
strike. In case the situation continued, it would be difficult for them to
maintain normal production level and to stay in business.
As understood, there will be no further requirement of B. Twill bags by the
government for packaging of rabi crop in this season. This means, the
government will place further orders for B.Twill bags on the mill only at
the advent of kharif season, which is still far off.
Raw jute market was also on further downswing. TD4 was being traded at Rs
1,200 per quintal against the previous week’s level of Rs 1,275 per quintal.
Because of dampening finished jute goods market, mills were cautious in
building up their raw jute stocks. In absence of mill support, raw jute
market was bound to fall.
Falling raw jute market has also created serious concern for the JCI. JCI
has been holding a substantial stock of raw jute bought under their
commercial operation during the earlier part of the 2006-07 crop season. It
was understood, in order to liquidate this held-up stock, the JCI authority
has been approaching the government to approve linkage of this held up raw
jute stock of JCI with the B. twill allocation.
Source: The economic Times
DGS&D bags tender
shocks Jute Industry
Kolkata: April 16,
2007
The Indian Jute industry is upset by the report that the DGS&D has again
invited two fresh tenders for procurement of 100 lakh woven HDPE/PP bags, or
totaling 38,636 bales each bale containing 500 pcs for packing food grain.
The official procuring agent has been asked by the authorities to place
orders immediately at the existing rates. It is likely to be open to all to
all manufacturers irrespective of their registration. It is also decided
that tendered quantity is to be put up on DGS&D website.
Unnerved at the report, deputy chairman of Indian jute Mills
Association (IJMA) RK Poddar has urged Union Textile secretary AK Singh to
intervene in the matter as the secretary (food), department of food and
public distribution (PDS) agreed to place orders on jute industry for supply
earlier in a similar tender immediately after the settlement of
two-month-old jute strike.
It may be mentioned that in that case, food secretary actually
placed on jute industry for supply of 95,000 (50,000+45,000) bales of
B.Twill jute bags of 50 kg capacity for procurement capacity for procurement
of food grain in cancellation of the indents
already placed on DGS&D for procurement of HDPE/PP bags. The industry then
committed to supply the entire quantity of B.Twill jute bags including the
backlog within April 15, and a large quantity has already been inspected,
passed and delivered.
The industry is now trying to understand what made the department
of food and public distribution advise DGS&D to place indents for 38,636
(18,634+20,000) bales of HDPE/PP bags for packing foodgrain. In the event of
department requires additional quantity of packing foodgrain for delivery
beyond the dateline of mid-April, the jute industry is in a position to
supply the entire quantity, as it has capacity of producing over 1.5 lakh
bales of B.Twill jute bags in a month.
As such, the jute industry, Mr Poddar said, has sought the urgent
intervention of Mr Singh to take up the matter with secretary (food) & PDS
so that its decision of buying HDPE/ PP bags already placed on DGS&D is
cancelled and in place directing the office of Jute Commissioner through DGS&D
to place indent for an equivalent of B.Twill jute bags on jute industry for
supplying within the month of April, 2007.
The jute industry fails to understand why anti-slip HDPE/PP bags
should be procured in preference to jute bags, especially when the jute
industry is being starved of orders after a prolonged strike.
Source: The Economic Times
Jute Board Bill to be introduced
New Delhi, March 11
The Government has decided to introduce the national Jute Board Bill 2006 in Parliament during the current session. This will pave the way
for creation of a national Jute Board (NJB) in Kolkata. The decision was taken at the meeting of the Cabinet recently, the Minister for Information and Broadcasting, Mr Priya Ranjan Dasmunshi, told
reporters here. The objective of the board would be to coordinate and implement the programmes of the jute sector, he said.
Raw jute output seen up; concern over quality
Kolkata , Oct.6 , 2005
FOLLOWING a sharp rise in raw jute prices during the last one month, there has been speculation on the total production and its quality. Mr K.K. Dhandhania, President of the Jute Brokers Association, in a press statement, sought to clarify that the availability of the golden fibre was
more than enough but added that the quality was not as good as expected. "Though in terms of quantity the crop exceeded expectations, the quality will be inferior to that in the previous years," he stated. According to him, inadequate rainfall in the districts of
Murshidabad, Nadia and Burdwan was responsible for this. Because of this, around 35
per cent of the crop has still not been harvested. "The crop has been outstanding in Assam, the semi-northern belts and has been at par with the previous years in some regions of northern West Bengal and Bihar. The south Bengal crop has improved in quantity, but it has lost quality," he added.
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