Jute Industry Faces Challenges: Key Issues Discussed at Advisory Meeting

Kolkata, Jul 31 (PTI) The Indian Jute Mills Association highlighted several pressing issues at the 32nd Standing Advisory Committee (SAC) meeting in New Delhi, including the challenges faced by the sector due to declining demand for jute bags, officials said.

Key stakeholders such as representatives from the sugar and plastic industry bodies participated in the meeting on Tuesday.

The SAC makes recommendations to the Union government on the mandatory use of jute packaging materials, and packaging norms for essential commodities such as foodgrains and sugar.

The Jute Commissioner's Office (JCO) stressed upon the need for supporting the sector, the IJMA officials said.

An estimated 40 million farmers and 3.5 lakh jute mill workers are dependent on the industry.

The representatives of sugar industry bodies raised concerns about the pricing and quality of jute bags, urging the government to fix rates for sugar jute bags.

"They also noted the reluctance by major buyers like some beverage giants to use jute bags, despite environmental benefits," said industry sources present at the meeting.

The non-compliance with government notifications by the sugar industry was also a cause for concern, they said.

Plastic industry representatives sought the removal of “discouraging language” about plastic bags in the Jute Packaging Materials Act (JPMA), the sources said.

"The jute industry is operating at 55 per cent capacity, affecting over 50,000 workers. The demand for jute bags is projected to drop to 30 lakh bales for 2024-25," IJMA Deputy Chairman Rishav Kajaria said.

The IJMA also urged the SAC for immediate government intervention in enforcing 100 per cent reservation norms in foodgrain and sugar packaging in 2024-25.

Other key issues discussed at the meeting include revising policies on the use of used jute gunny bags, addressing financial constraints due to the GeM portal pricing cap, initiating investigation into subsidised jute imports, and ensuring strict compliance with labour laws and wage agreements, the officials said.

The jute industry contributes over Rs 12,000 crore to the rural economy, but is faced with challenges as raw jute prices fall below MSP levels, they added.