 Mumbai: The Cabinet Committee on Economic Affairs on Aug 16 reversed the 25% dilution proposed by the ministry of textile on jute bags use and has restored 100% reservation in the mandatory Jute Packaging Materials Act (JPMA) for 2010-11 for packing sugar and food grains.
The standing advisory committee (SAC), chaired by the Textile secretary had recommended a 25% dilution in JPMA for 2010-11 in June. The textile ministry had also sought dilution to the tune of 25% recently. However, the Cabinet over-ruled the recommendations on Aug 16.
Union finance minister Pranab Mukherjee, railway minister Mamata Banerjee and West Bengal Chief Minister Buddhadeb Bhattacharjee, among others, played a key role in getting the textile ministry recommendation reversed, says Manish Poddar, chairman, Indian Jute Mills Association. This is to help the jute industry in West Bengal, which is the leading producer of jute (50%) in the country. The textile ministry was of the opinion that production would be lower than consumption during the current year. However, spurred by higher prices and favourable weather conditions, raw jute production has increased substantially than anticipated.
With a total production of about 120 lakh bales (108kg), carryover of 12 lakh bales from 2009-10 and likely import of 3-5 lakh bales, the total availability is likely to work out to about 135 lakh bales, according to a senior official in the industry.
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