Sugar industry allowed to use alternative packaging instead of jute bags

Due to shortage of jute bags for packaging of sugar for supply in the open market the market prices of sugar has risen sharply by 30-40%, according to a notification issued by the Union Ministry of Textile.

In view of the current circumstances, the Centre has allowed sugar industry to use 20% alternative packaging materials for sugar up to May 31, 2009, by postponing the earlier order for 100% compulsory use of jute packaging materials for food grains and sugar.

A notification (No.S.O.859E) has been issued by the Union Ministry of Textile (Jute Section) last week which stated that the government has considered the estimated demand by the sugar industry for 2008-09 season is 1.73 lakh tonnes. The supply from the jute industry during current year is estimated to be 1.19 lakh tonnes. Therefore, the Central Government being of the opinion that it is necessary or expedient to do so in the public interest and the exercise of the powers under the provisions of Section 16(1) of the Jute Packaging Material Act (JPM), the Centre has allowed for packaging sugar in material other than jute.

Earlier, the Union Ministry of Textile issued a notification (S.O.2143E dated 1st September, 2008) under the provisions of Section 3 of the JPM Act which reserved food grain and sugar for 100% packaging in jute packaging material for the year 2008-09.

According to Bhupendra Singh, Joint Secretary, Union Ministry of Textile (Jute Section), this exemption would be valid for use of alternative packaging material used by the sugar industry during jute season 2008-09 and the procurement of the said alternative packaging material should be completed by May 31, 2009. In order to prevent any misuse of this exemption, this order shall be subject to conditions such as the exempted agencies shall furnish a return to the Chief Director (Sugar) and the Jute Commissioner (JC) indicating the details of procurement of alternative packing material on the basis of this relaxation by July 15, 2009, alternative packing material procured should be as per the Bureau of Indian Standards (BIS) standards and branding of the Bags and Bales should be according to the applicable rules.

Chief Director (Sugar) shall monitor the utilisation of exemption by the sugar mills and enforce the provisions of the JPM Act and take action as per the JPM Act in case of default. Also, Chief Director (Sugar) shall submit a consolidated report to the Union Ministry of Textile by July 31, 2009, Singh added.

source: fnbnews