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Related Keywords: boost jute exports, cut production, demand to impose duty, domestic jute bage manufacturers, domestic manufacturers, flooding Indian market, India and Bangladesh, Indian jute mills association, jute geo-textiles, Jute Packaging Materials Act, non level playing, on import of jute goods, SAARC treaty, subsidized jute goods, zero duty

The Indian Jute Mills Association (IJMA) has raised the demand ahead of the Union Budget to impose duty on imports of jute goods from Bangladesh that has grown by 35 percent in the April-December period of this fiscal at the expense of domestic manufacturers. Over the same period, the domestic jute bags manufacturers have cut production by more than 25 percent.

Under the SAARC treaty, there is zero duty on import of jute goods from Bangladesh, thereby creating a non level playing field between jute manufacturers of India and Bangladesh.

Related Keywords: high price, huge stock, Indian Jute mill association, jute bags, jute bags from West Bengal mills, Jute Packaging Materials Act, packaging of foodgrain, West Bengal jute mills

West Bengal jute mills are sitting on huge stocks, even after operating as only a third of capacity. According to rules, it is compulsory that 90 per cent of packaging of foodgrain be done in jute bags but the Punjab government is refraining from purchasing jute bags used for foodgrain packing. Punjab which is the largest buyer of jute bags from West Bengal mills. In addition, orders from the sugar sector have dried up due to which the jute sector in West Bengal is faced with crisis.

Related Keywords: 90 percent for foodgrains, dilute mandatory jute packaging, Jute Industry, Jute Packaging Materials Act, performance and production trends, product diversification, Union textiles ministry

The Union textiles ministry keeping in view the performance and production trends of sacking bags of the jute industry over the years has proposed to dilute the mandatory jute packaging order mandated under Jute Packaging Materials Act (JPMA), 1987.

The dilution moves is also aimed at gradually decreasing the dependence of jute mills on sacking and persuade them to go for product diversification.

Related Keywords: B Twill jute bags, freeze capacity, Indian jute industry, internal consumption lower, Jute Commissioner, Jute Packaging Materials Act, Subrata Gupta, union textile ministry

The Union textiles ministry is planning to freeze capacity of B Twill jute bags based on the recommendation made by Jute Commissioner Subrata Gupta, who had advocated freeze in capacity since internal consumption of jute bags was lower than the actual capacity. The jute bag capacity likely to freeze at 2.59 million bales (one bale is 180 kg) for 2014-15.