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Sugar mills using plastic bags may face police action
Kolkata/ Bhubaneswar December 28, 2011: Sugar mills using plastic bags for packaging in blatant violation of the
Jute Packaging Materials Act (JPMA)-1987 are headed for trouble as the Government of India on the advice of the law ministry has directed the
Jute Commissioner to initiate action against such non-compliant mills. JPMA provides for mandatory use of jute bags for the purpose of packing
food grains and sugar up to 100 per cent. Under Section 9 of the Act, sugar mills and others flouting the Act can
be punished with the imposition of a penalty which is double the cost of jute packaging material which should have been used.
In a recent letter R K Vashisth, under secretary, Union ministry of textiles issued instructions to Jute Commissioner Atri
Bhattacharya to file criminal complaints against the erring sugar mills.
"The Central Government does not have the power to impose penalty under
Section 9 of JPMA-1987". It vests with the competent court? which means
the district court under whose jurisdiction the particular sugar unit is
located, Vashisth's letter said. The ministry's directive comes after a long-standing demand from the
jute industry to implement Section 9 of JPMA-1987 as there is allegation of rampant flouting of law by the sugar mills and other units. The CAG
was apprised of the matter and it had sent notices to the Union textiles ministry for necessary action.
According to O P Bagri, deputy legal adviser, Ministry of Law and
Justice- Department of Legal Affairs, any violation of JPMA-1987 is a cognizable offence under Sections 7, 8, 9 and 12 of the Act where the
Jute Commissioner or any competent authority has the power to inspect, cease and impose penalty by following it up with police action under the
Code for Criminal Procedure (CrPc) against the erring parties. Individuals can also file criminal charges against the violators of
JPMA, 1987.
Meanwhile, plastic manufacturers have alleged that the jute industry is
engaged in cartlelizing, manipulating and artificial rigging of
raw jute and jute goods prices, violating provisions of the Competition Act-2002. The Competition Commission of India (CCI) is probing the
complaint. In 2010 -11 the beleaguered jute industry fears to have lost Rs 1500 crore as the peak sugar season was over by October and JPMA-1987
was not extended by the Cabinet Committee on Economic Affairs until November 16.
The jute industry supplies around 0.2 million tonnes of 50 kg A Twill jute bags produced every year for mandatory packing of sugar
manufactured in 450 sugar mills. Source: Business Standard
Grant of subsidy to Jute Corporation of India
(JCI)
Ministry of Textiles, December 7, 2011: Grant of subsidy to Jute Corporation of India to maintain its
infrastructure for MSP (Minimum Support Price) operations The Cabinet Committee on Economic Affairs today approved the following:
(a) To provide subsidy to Jute Corporation of India on continuous basis to off-set the losses on account of MSP operations. The quantum of
subsidy will include the difference between the expenditure incurred on MSP raw jute upto the point of sale and sale price of MSP raw jute. The
reimbursement of fixed overhead cost would be maintained at a level of Rs.55 crore from the jute year 2011-12. It will be granted every year as
preparedness expenses for conducting MSP operation, therefore, to be paid even for those years when there is no MSP operation.
(b) To regularise the subsidy given to JCI during 2009-10 and 2010-11 (Rs.36.59 crore and Rs.30crore
respectively) and release the balance amount due for 2010-11 (Rs.6.59 crore) to make it at
the same level as that of the previous years.
(c) To provide one-time government guarantee upto Rs.150 crore along with accrued interest, as applicable, for 10 years with effect from the
financial year 2011-12 to public sector banks for availing of working capital loan facility as and when required by the Jute Corporation of
India Ltd. for conducting the MSP operations.
This decision will provide financial support to Jute Corporation of
India to protect the interest of the jute growers through procurement of raw jute under the MSP fixed by the Government of India and also to
stabilize the raw jute market for the benefit of the 40 lakh farm families and the jute economy as a whole.
Market for Indian textiles, Jute and handicrafts
Sydney November 25, 2011: Australia is emerging as an important market for Indian textiles and
handicrafts. To capitalise on this untapped bilateral trade potential, as many as 60 Indian businesses showcased some of the finest wares at
the three-day Australian International Sourcing Fair held from November 22-24 at the Sydney Convention and Exhibition Centre here.
"Brand India's aim is to introduce or re-acquaint the Australian textile, fashion and design industry to what India has to offer in terms
of creativity, quality, variety, flexibility and timeliness," said Siddhartha Rajagopal, executive director, The Cotton Textiles Export
Promotion Council of India (TEXPROCIL). India's textile and clothing export sales in 2010-11 were worth $25
billion and are projected to reach $32 billion in 2011-12. "While China
dominates 90 per cent of the Australian market, India is second at merely four per cent followed by New Zealand at three per cent. In the
first half of 2011, our exports have touched $350 million and because of these fairs there has been a significant growth. We expect to touch $500
million by 2012,? Rajagopal told Business Standard.
India is the largest producer of organic cotton and jute, second largest
producer of raw cotton and silk. Australian buyers are looking at India as a reliable source market.
"Our strengths lie in the quality and diversity of fabrics, weaves, colours, range of embroidery interspersed
with beads and sequins. Indian innovation is following a global approach to product styling, finishing, redefining quality, visual merchandising
and international collaborations," Rajagopal added. Source: Business Standard
Odisha Govt to sell out defunct Konark Jute Mill
Bhubaneswar, November 17, 2011 : The Odisha Government on Wednesday decided to sell out
the defunct Konark Jute Mill at Dhanmadal in Jajpur district. And after negotiation, Bhatia OSL Washery Mineral Limited was short-listed for
handing over the mill that would be operational within next two months. The decision was taken at a high-level meeting held under the
chairmanship of Finance Minister Prafulla Chandra Ghadai. It was stated that Bhatia OSL Washery Mineral Limited has agreed to pay Rs 34 crore to
take over the mill, a sister concern of the State-run Industrial Development Corporation of Odisha.
Ghadai said that as per the agreement, the private company has deposited
Rs 12 crore with the Government and promised to pay the rest Rs 22 crore within next two months for final handing over the unit. He said the
company has also agreed to absorb all the regular employees of the mill. Ghadai said it was also decided to take steps for capacity expansion and
modernisation of two State-run units, Konark Iron Works at Barbil and the ferrochrome plant at Jajpur Road. Source: Odisha News
Jute goods export likely to touch 1500-cr this financial year
VISHAKHAPATNAM, November 6, 2011 (PTI): Jute good exports from India in the current financial year is likely to touch Rs 1500
crores, a top official of the National Jute Board said. Speaking to reporters after opening a exhibition cum sale of jute
products here yesterday as part of the sales promotion, Market Officer B Narasimhulu said jute goods worth Rs 1400 crores were exported to
various countries last financial year and this time it may touch Rs 1500
crores.
He said the National Jute Board, under the Textiles Ministry had been encouraging small entreprenuers in making jute products and
providing 20 percent capital expenditure subsidy for jute mills in the /country.
Narasimhulu said the Jute Board was conducting training programmes to small groups and Non-Governmental organisations in making various types
of jute products.
The official said it was also organising exhibitions at various places
to encourage artisans to establish their stalls free of cost to exhibit their products as part of sales promotion.
He said the week-long exhibition from today is expected to fetch a sales worth Rs 12 lakhs as against Rs 10 lakhs last year.
KMSS seeks probe into jute farmer deaths
JORHAT, October 13, 2011: The Krishak Mukti Sangram Samiti (KMSS) on Wednesday staged a sit-in at the district
headquarters of Jorhat, Golaghat and Sivasagar districts, seeking an immediate probe
into the Darrang cop firing incident in which four farmers were killed. The peasantsa body also asked the government to ensure dignity of labour
to farmers by issuing reasonable price lists of local products.
"We staged a demonstration near the DC office for two hours in protest
against the brutal killing of farmers in Darrang district on Monday and demanded a high-level inquiry into the firing. We have also urged the
government to punish the guilty police personnel, who shot dead the four protesting farmers while they were seeking justice on jute prices. We
strongly condemn the atrocity and want justice on the matter", said Dibyajyoti Sharma, the secretary of KMSSas Jorhat unit.
Four farmers were shot dead by police at Besimari in Darrang district
when a group of farmers blocked NH-52 in protest against the low jute price fixed by wholesale buyers at the Besimari weekly market. Some
other farmers and police personnel were also injured in the incident. Source: Times of India
Chittivalasa jute mill may be re-opened this month
Visakhapatnam, September 7, 2011: At last, the impasse in the Chittivalasa Jute Mills at Tagarapuvalasa in
Visakhapatnam district has been broken and it is likely to be reopened following an agreement between the management and the workers. It may be
recalled that the mill, the oldest composite one in Andhra Pradesh, was closed following a lockout on April 20, 2009.
According to the agreement, the workers will report to work once power
supply is restored. Within a few days, power may be restored and the clean-up job will be completed to make the mill fit for production.
The management declared a lockout on April 20, 2009, to reduce shifts from three to two following problems in power supply. The mill has a
production capacity of 100 tonnes a day with 2,200 permanent and 1,800 badli workers.
Mr. K. Varahala Raju, the president of INTUC-affiliated CJM Workers’ Union
, said here on Wednesday that the work would resume anytime following the agreement signed on Tuesday in
Hyderabad.
Jute industry under CCI lens for alleged cartelisation
New Delhi August 24, 2011: The Competition Commission of India (CCI) will investigate an alleged
cartelisation charge on the domestic jute industry. Prima facie, the regulator has found substance in the complaint and last week decided to
initiate a probe, said a sugar industry official. The sugar industry had filed a complaint with CCI through two apex
associations claiming that the jute industry had abused its dominant position by charging excessive price in the absence of competition.
It had appealed to the commission to use its advocacy role and advise the textile ministry to suitably relax the mandatory jute packaging
requirements for sugar. The textile ministry, the administrative ministry for jute industry, and the two jute industry bodies have been
made parties in the case. The sugar industry consumes around 300,000 tonnes of A Twill jute sacks
at Rs 1,650 crore at the Rs 55,000 a tonne.
The Indian Jute Mills Association and Gunny Traders Association have cartelised the market for
packaging material for sugar thereby infringing section 3(3) of the CCI Act by jointly deciding sale prices and limiting technical development
of the industry, the Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories have alleged. The All India
Flat Tape Manufacturers Association, which produces plastic sacks, has also joined hands since the reservation given to jute industry has
restricted their growth.
The Jute Packaging (Mandatory) Act of 1987 had made use of jute bags mandatory for packing sugar, foodgrain, fertiliser and cement. But, the
supply of jute bags failed to keep up with the growing output. As a consequence, cement and fertilisers were exempted. An exception is given
to sugar mills on sugar meant for export and bags of up to 25kg. In international trade, the accepted practice is to pack sugar in
high-density polyethylene (HDPE) bags. The Centre has the power to decide on the quantum of sugar that should be packed in jute. However,
the government has repeatedly overruled the recommendations of the Standing Advisory Committee that sugar factories be allowed to pack 25
per cent of their production in non-jute bags.
The situation, the sugar industry argues ?has encouraged the creation of
a dominant position of the jute industry, whereby they are misusing the position by taking undue advantage of their monopolistic and dominant
position in the absence of any competition from non-jute suppliers The associations have argued that since grains are procured by the
government for PDS, sugar is the only commodity handled by the non-government body that is forced to use jute.
The sugar industry argued that by making jute bags mandatory, the
sweetener consumers are penalised in two ways: First, they are made to pay an extra 40 paise for a kg of sugar since cost of jute bag is higher
and second, that the sugar is not as clean as it would have been if it had been packed in HDPE bags. Source: Business Standard
Tamil Nadu government to create venture fund for jute entrepreneurs
Chennai August 09, 2011: The Tamil Nadu
government has set aside Rs 100 cr for MSMEs in the jute industry. The number of such units in Tamil Nadu is the largest among all states in
the country, accounting for 15.07 per cent of the national total. The Tamil Nadu government is planning to create a venture capital fund
with the support of private industries and foreign investors for the Entrepreneurship Development Institute (EDI) in the state.
O Panneerselvam, the state finance minister, who presented the interim
budget last week, said that the EDI will also create a corpus fund by pooling resources from financial institutions, and the state and Central
governments. The EDI will be revamped to motivate and train young entrepreneurs,
particularly first generation entrepreneurs, he said. Speaking about sectoral development in the state, Panneerselvam said the
state had set a target of developing 50 clusters in the 11th Five Year Plan. The
state's Small Industries Development Corporation Ltd (Sidco) has identified 2,256 acres in 25 locations to promote industrial
clusters for micro, small and medium enterprises (MSME) in the coming years.
Jute packaging norm may be relaxed this year
Mumbai July 13, 2011: The standing advisory committee on jute under the ministry of textiles
has recommended a relaxation in the Jute Packaging Materials Act for 2011-12.
Sources close to the development said the proposal was under the consideration of the Cabinet and a decision would be taken soon.
However, officials say, jute production in the current year has been
robust, unlike last year. Therefore, the relaxation will not be as high as last year. Last year, it was in a proportion of 75:25 (a user could
use plastic or any other material only for 25 per cent of the produce and the rest had to be packaged in jute).
"Along with robust jute production, the food grain harvest is also quite
strong. Therefore, the relaxation may be done for only 10-15 per cent of the
produce," explained an official. The cabinet is likely to take a
decision on this soon. The chemicals and fertilisers ministry is of the view that in a market
economy, manufacturers should have the liberty to use the material they find convenient.
At present, it is mandatory to use jute bags for sugar and food grains.
However, according to the proposed relaxation, other materials might be
allowed to be used for packaging some food grains up to a certain quantity. Backed by favourable weather and adequate availability of seeds in the
market, the sowing of raw jute is estimated to be higher, at 11 million bales in 2011-12, as against one million bales last year. Jute sowing
usually starts by the end of March and continues till the end of May.
Raw jute production in 2010-11 was slightly lower in spite of good sowing as harvesting was hampered because of
lower- than- anticipated rainfall last year. The Directorate of Jute Development had estimated sowing coverage of
8,65,000 hectares for jute and allied fibres during 2011-12. The industry requires about 5,500-6,000 metric tonnes of seed to cove
Jute Commissioner recommends 20% dilution of Jute Act
Kolkata/ Bhubaneswar July 05, 2011: In tune with the recently released National Fibre Policy (NFP)-2011 and
the earlier National Jute Policy (NJP)-2005, the Jute Commissioner has recommended a dilution of the Jute Packaging Mandatory Act (JPMA) 1987
by 20 per cent for food grains and sugar packaging in the current fiscal. As a second alternative, the Jute Commissioner?s Office (JCO) has
recommended 100 per cent dilution of the Act for sugar packaging while continuing 100 per cent reservation for jute bags for packaging of food
grains. JPMA makes it mandatory for government procurement agencies to pack sugar and food grains in jute bags to an extent of 100 per cent.
The jute industry annually supplies around 6.65 lakh tonnes of jute bags
for packing around 230 million tonnes of food grains and 2.16 lakh tonnes of sugar twills (A twill jute bags) for packing 220 lakh tonnes of sugar.
The jute industry?s annual business turnover is around Rs 9000 crore including around Rs 1200 crore of exports. The jute bags are produced in
66 operating jute mills spread out in seven states. Of them, 5 are in West Bengal. The industry has the capacity to consume up to 105 lakh
bales of raw jute to produce 22 lakh tonnes of jute goods every year. As per Jute Advisory Board (JAB) estimates, this year the raw jute
availability will be around 122 lakh bales because of good monsoon. The road map of NFP-2011 points out that jute sector will not enjoy any
protection by the end of the 14th Plan Period (2022-27) with the phased withdrawal of JPMA 1987.
According to the Jute Commissioner, total protection to the industry
will only create an imbalance in the jute sector as mills will only manufacture sacking products at the cost of other jute products. This
will be counter productive as it will act a bottleneck for future modernization.
The Jute Commissioner, however, has admitted that the industry has the
capacity to supply and meet the annual projected demand for 8.3 lakh tonnes (25 lakh bales) of gunny bags in the Kharif and Rabi seasons of
2011-12. This year, the demand is likely to go up by around 21 per cent from last year's demand of 20.71 lakh bales of gunny (B Twill) bags. The
industry is expected to orders for supply of 14 lakh bales and 11 lakh bales of gunny bags in the Kharif and Rabi season.
The Government purchases 40 per cent of the gunny bags manufactured by
the jute sector. This is almost an 81 per cent protection for sacking and 56 per cent protection on all jute products. According to an Ernst
and Young (E&Y) report, the manufacture of gunny sacks should be pruned by 17 per cent from the present 67 per cent and the reduction
distributed between yarn and diversified items whose demand is likely to rise in the market.
In 2009 and 2010, the JCO had also recommended a dilution of 25 per cent
of JPMA but the proposal was struck down by the Cabinet Committee on Economic Affairs (CCEA) with interventions from the Union finance
minister Pranab Mukherjee and the then Railway Minister Mamata Banerjee. Source: Business Standard
West Bengal labour minister to revive sick jute units
Kolkata, June 2, 2011: West Bengal labour minister Purnendu Bose today said his
department would take the initiative to open closed industrial units, particularly those that stopped operations recently and had chances of
survival. To begin with, he has called tripartite meetings on Wimco and Wellington
jute mill. The units - Wimco in Dakshineswar and Wellington in Hooghly, have around 5,500 workers all together. They shut down after the
Assembly polls following months of industrial disputes.
The meeting on Wimco, a manufacturer of matches acquired a few years ago
by the Calcutta-headquartered ITC, is scheduled for Monday.Bose said he had asked his officials to prepare a status report on all
closed units. "The Left Front government failed to prepare a comprehensive database on the number of closed units and the workers
involved. We are trying to gauge the extent of the problem and intervene accordingly."
National Jute Board invited proposals from advertising
agencies
Kolkata, April 22, 2011: The National Jute Board (NJB), a Ministry of Textiles statutory body,
Government of India, has invited proposals from advertising agencies for empanelment, senior industry sources have informed. The appointment of
the agencies will be for the current financial year, which may be extended for one year at a time up to March 31, 2014.
The duties range from integrated communications to promotional campaigns
for jute through outdoor, print, TV, radio, the Internet and other media. The chosen agencies will be required to conceptualise, design and
execute a sustained campaign to build a brand identity for Indian jute and jute products within the country and internationally. Preparation of
product and category specific promotional materials will also be a part of their responsibilities.
The empanelment pitch is open only for those agencies that are accredited to the INS (Indian Newspaper Society) and have their offices
in Kolkata and in at least two of the other five metro cities - namely, New Delhi, Chennai, Mumbai, Bangalore and
Hyderabad. Minimum annual turnover of Rs 10 crore, excluding revenues from media buying in any
form including print, radio, television, Internet or hoardings, is also a required.
Interested candidates can submit their proposals at NJB, Park Street,
Kolkata. Last date of submission of proposals is April 25, 2011. Source: www.exchange4media.com
Union food ministry bats for dilution of jute packaging norms
Kolkata/ Bhubaneswar March 12, 2011: The Union food ministry has once again initiated the move for a partial
dilution of compulsory jute packaging norms provided by the Jute Packaging Materials Act (JPMA) of 1987 despite the Union Cabinet in
September 2010 categorically rejecting such an earlier proposal put forward by the textiles ministry.
The under secretary of the ministry K C Yadav has recently approached the textiles ministry pleading on behalf of the food ministry to relax
JPMA norms for better storing of wheat and distribution in future.
According to Yadav, creating silos (structures for storing bulk materials) for storing of wheat will strengthen the Public Distribution
System (PDS) and it would also benefit the food department on costs against maintenance of warehousing corporations.
It may be noted that three years back in 2008 ? 09, the food ministry tried to take a similar step but it was vehemently turned down by the
then textiles secretary A K Singh who found it to be contravening the government's decision.
The move is against provisions laid down in the Union Budget of 2010-11
where the Union finance minister Pranab Mukherhjee had specifically pointed out that modern storage capacity and capital investments over it
would only have to be increased and met through Viability Gap Funding of warehousing corporations and private entrepreneurs.
The department of food has calculated a saving of around Rs 6.54 paise per quintal in comparison to wheat stored in warehouses.
Yadav has proposed the use of 20 lakh plastic (HDPE/PP) bags of 50 kg capacity every year for an assured movement of 0.1 million tonne of
wheat, replacing jute bags.
The formula has been derived by the food department in line with the
PUNGRAIN scheme taken up by the Punjab government to create four silos of 50,000 capacity each for storing two lakh tonnes of wheat.
The food department has estimated that the difference in storage charges of warehouses and silos would be met through cess and market levy
reliefs. Though the amount of HDPE/PP sacks recommended for packing of wheat from
silos is less than puny in comparison to jute bags, it is really surprising how a government department could afford to override the
decision of the Union cabinet of continuing with 100 per cent reservation for jute bags for food grain and sugar packing in 2010 ? 11,
said an industry source. The jute industry produces 140 crore jute bags every year and wheat
production is almost 180 million tonnes per annum. Source: Business Standard
Coca Cola, GSK, Nestle snub sugar packed in jute bags
Kolkata/ Bhubaneswar January 27, 2011: In a body blow to the ailing jute industry in the country, major
corporates like Coca Cola India, Cadbury, Nestle India and GlaxoSmithkline have outright rejected the supply of sugar in jute bags.
These firms have argued that the jute fibres are contaminating the sugar that they use for manufacture of their products.
These corporate majors, have instead opted for supply of sugar packed in plastic bags.
The snub to jute bags by these corporates has come at a time when the
Jute Commissioner's Office (JCO) and the Indian sugar industry have locked horns over the availability of raw jute and production of jute
bags in 2010-11.
Over the past few months since the peak sugar season started, all the
four food and beverage companies have written letters in phases to the Indian Sugar Mills Association (ISMA) expressing their concern over jute
sacks and favouring packing their materials in polypropylene sacks. ISMA in turn has taken up the issue with the Union Textiles Ministry and
the Jute Commissioner's Office (JCO) in Kolkata. ISMA has written to the Textile Ministry and JCO that there will be a
major shortage of jute bags in 2010 -11 because of a 26 per cent lower production of raw jute and around 24 per cent less production of jute
bags during the year.
ISMA has based its calculation on figures available from the Union Agriculture and Textile Ministry for 2010-11. Almost 70 per cent of the
sugar produced in India is consumed by industrial users like beverage manufacturers, biscuit and confectionery makers, food processing
industries and sweet meat producers. According to ISMA, the large corporates have found that jute bags tend
to absorb moisture and usually support microbial growth due to the organic nature of the bags.
Moreover, the jute industry is also facing labour shortage and will not be able to meet the requirements of production.
The sugar industry consumes around 0.3 million tonnes of A Twill jute
sacks valued at around Rs 1650 crore at the rate of Rs 55,000 per tonne. ISMA has requested the Textile Ministry to relax 25 per cent of jute
mandatory packaging order in favour of plastics given the bad condition of jute industry. The Union Government has decided to pack 100 per cent
sugar produced in the country in jute bags. The jute industry has an installed capacity to produce 2.3 million
tonnes of jute goods but depending on government and market demand, it currently produces around 1.9 million tonnes with a turnover of around
Rs 10,000 crore.
Sugar consumption is only 16.5 per cent both in value and volume terms.
The remaining is solely meant for food grains packaging in Kharif and Rabi agriculture season for the government and the market. ISMA's
objections have however been rebuffed by the Jute Commissioner's Office (JCO). In a letter to Abinash Verma, the Director General of
ISMA, Deputy Jute Commissioner Arti Kanwar said that there is no shortage of
raw jute availability or production capacity that may adversely affect the production and supply of jute bags for packing of sugar in the
current financial year. According to Kanwar, the jute crop in 2010-11 is sufficient to produce
1.92 million tonnes of jute goods as the availability of raw jute is about two million tonnes or around 119 lakh bales.
Moreover, under present conditions, the jute industry has the potential
and capacity to produce and supply 0.31 million tonnes of 630 gms sugar bags in five months between December 2010 and April 2011.
The sugar industry requires supply of 0.29 million tonnes of jute bags to pack the projected 2.3 million tonnes of sugar in 2010-11.
In her letter to Verma, the Deputy Jute Commissioner said that ISMA has also stated incorrect figures regarding the production of jute sacks.
She has also cited examples of the International Jute Organization
(IJO) receiving global supports from International Cocoa and Coffee Organizations since 1998 for packing food products in jute bags in
countries like USA, European Union and Latin America. Jute bags are also exported for food packing in African and West Asian nations.
Source: Business Standard, Jan 27, 2011
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