Industry against govt's order to use jute bags | BS

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Domestic sugar industry, which is already incurring losses due to a supply glut, is strongly against the government’s order to compulsorily use jute bags for packaging the commodity, a senior industry official told NewsWire18 today.

“The government’s order to use only jute bags for packaging sugar has been issued to please the Left Front, which rules West Bengal — the major jute-growing state,” said Prakash Naiknavare, managing director, Maharashtra State Cooperative Sugar Factories Federation.

The government earlier issued an order for 100 per cent use of jute bags for packing sugar, but subsequently diluted the same, allowing up to 30 per cent use of polypropylene bags. The industry should be allowed 100 per cent use of PP bag, as it costs half the price of jute bag, said an official of a Kolhapur-based sugar mill.

The industry needs 500 million bags during the current season ending September. While the cost of 500 million jute bags is nearly Rs 1,300 crore, it is just Rs 600-700 crore in the case of PP bags, said the official.

“We are not in a position to bear the additional burden of Rs 600-700 crore, as we are already reeling under heavy debt,” the official added.

Due to the ongoing six-week long strike by jute industry workers, the availability of jute bags is also a problem. Currently, these bags are imported from Bangladesh.