Lok Sabha Question No. 3451 (UNSTARRED), answered on 2017-03-23
Subject: Import of Gunny Bags
Ministry: TEXTILES
Asked by: P. C. MOHAN

## IMPORT OF GUNNY BAGS

## 3451.  SHRI P. C. MOHAN:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) whether gunny bags are being imported from Bangladesh and Nepal whereas the Indian jute industry is facing difficulties in getting orders and if so, the details thereof;
- (b) whether her Ministry has received any report from Jute Commissioner that the statutory packing order has been violated;
- (c) if so, the details thereof; and
- (d) the  steps  taken  by  the  Government  for  the  revival  of  jute  industry  and  to prevent import of jute bags from other countries?

## उत्तर

## ANSWER वस्त्र      मंरी (श्री अज      )

## MINISTER OF STATE FOR TEXTILES (SHRI AJAY TAMTA)

(a): No,  Madam.  The  Indian  jute  industry  has  an  assured  market  as  State Procurement  Agencies  are  required  to  purchase  gunny  bags  under  the  Jute Packaging Materials Act, 1987.

- (b): No, Madam.
- (c): Does not arise.
- (d): Government is implementing the following schemes and measures to support the jute manufacturing units and to strengthen the jute sector:-
- (i) Under  the  Jute  Packaging  Materials  (Compulsory  Use  in  Packing Commodities) [JPM Act], 1987, Government specifies the commodities and the  extent  to  which  they  are  mandatorily  required  to  be  packed  in Jute Packaging Materials. At present, a minimum of 90% of food grains and a minimum of 20% of sugar are to be compulsorily packed in jute sacking. On an average, the annual Government support to jute industry on the account amounts to Rs.5500 crores.
- (ii) Whenever the  market  price  of  raw  jute  falls  below  a  certain  level,  the Jute Corporation of India (JCI) procures raw jute at Minimum Support Price  (MSP), fixed on the basis of recommendation of the commission for Agricultural Cost and Prices (CACP) from jute growers to safeguard their interest. Government of India has sanctioned Rs. 204 crores for four years  starting  2014-15  to  enable  JCI  to  be  in  readiness  for  MSP operations.
- (iii) Incentive  Scheme  for  Acquisition  of  Plants  and  Machinery  (ISAPM): Government  of  India  launched  ISAPM  for  Jute  Industry  and  Jute Diversified  Products  Manufacturing  Units,  with  effect  from  1 st October 2013.  The  basic  aim  of  this  scheme  is  to  facilitate  modernization  in existing and new jute mills and up- gradation of technology in existing jute mills and to provide assistance to a large number of entrepreneurs to manufacture value added biodegradable Jute Diversified Products (JDP) as well as for modernization Jute up-gradation of technology.
- (iv) Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise): This pilot project launched in 2015 is aimed at addressing the difficulties faced by the jute cultivators by providing them certified seeds at subsidized rates, seed drills to facilitate line sowing, nail-weeders  to carry out periodic weeding and by popularising several newly developed retting technologies under water limiting conditions. This has resulted in increased returns to jute farmers.
- (v) The  National Jute Board  implements  various schemes  for market development,  workers  welfare  and  promotion  of  diversification  and exports.
- (vi) Government  has  issued  a  notification  on  5 th January,  2017  imposing Definitive Anti-Dumping Duty on jute goods originating from Bangladesh  and  Nepal.  Based  on  the  current  level  of  imports,  the Industry has estimated that this is likely to generate upto 2 lakh MT of additional demand for jute goods to be met by the Indian Jute industry.
- (vii) Government has made it mandatory for the entire chain from importers and traders to the level before the end-users, to register with the Office of Jute Commissioner, and furnish monthly reports on the imported goods.
- (viii) Government through its Office of Jute Commissioner, Kolkata has also directed  all  manufacturers,  importers  processors  and  traders  to  mark/ print/ brand the words 'Made in- Country of Origin' on imported bags. Customs have also been requested  to  maintain  a  strict  vigil  so  that  no unregistered  importers/  traders  can  import  jute  and  no  unbranded  jute goods can enter India.

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