News & Updates

29 October 2015

Source: The Hindu

Racket in import of gunny bags

Bulk import of used gunny bags has come under the government scanner on the suspicion that these bags are being pushed into the Public Distribution System (PDS) for packaging purposes in violation of government rules.

Use of recycled bags for packing foodgrains and sugar is prohibited under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act. The recycled jute bags are being imported mostly from Thailand, apart from Malaysia, the U.S. and Jordan. This month, about 1.3 crore used bags worth Rs.30 crore have been imported through the Chennai port,the Pipavav and Mundra ports in Gujarat and the Nhava Sheva Port in Mumbai.

“The import cost on paper is shown as Rs.20-22 per bag. However, such bags are sold at a much higher price in the domestic market,” said RTI activist Gouri Shankar Jain.

The Act mandates that jute bags supplied to government agencies must be manufactured by Indian mills, using only domestically produced raw jute. “The Act’s objective is to protect the interests of about 35 lakh farmers and 2.5 lakh workers,” said Mr. Jain.

The Union Textiles Ministry recently unearthed a major racket in the import of cheap jute bags from Nepal and Bangladesh, for supply to government agencies.

25 October 2015

Source: The Economic Times

Antidumping probe on jute products from Bangladesh, Nepal

NEW DELHI: After finding sufficient "prima facie" evidence of dumping of jute products, India has started a probe to ascertain if an anti-dumping duty can be imposed on such imports from Bangladesh and Nepal to save the domestic industry.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has launched the investigation into imports from the two neighbouring countries on the request of Indian Jute Mills Association (IJMA).

The association has filed an application "for initiation of anti-dumping investigation and imposition of anti-dumping duty" on the imports of 'jute product' originating in or exported from Bangladesh and Nepal, the DGAD said.

The DGAD found "sufficient prima facie evidence of dumping" of the goods, injury to the domestic industry, and a causal link between the alleged dumping and injury exist to justify initiation of an anti-dumping investigation.

"The Authority therefore hereby initiates an investigation into the alleged dumping and consequent injury to the domestic industry...to determine the existence, degree and effect of the alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," the DGAD said.

The DGAD only recommends anti-dumping duty and it is the revenue department which imposes the import restrictive levy.

There are 34 producers of jute products in India who are members of the IJMA. As many as 15 Indian producers have "expressly supported" the petition and have provided injury information. Further, 14 companies have supported the petition.

Jute is a natural and an eco-friendly fiber, which comes from the inner bark of plants. The broad usages of jute include packaging, geo-textiles, protection of rooting plants, making of cloths, bags, wrapping, boot and shoe lining.

It is also used to make ropes, strings, upholstery foundation, curtains and furnishing fabrics. Jute can also be mixed with wool for fine yarn and fabric production.

Jute production is estimated at 102.84 lakh bales (180 kgs each) against the target of 110 lakh bales set for the crop year 2015-16 (July-June), as per the first advance estimate of the Agriculture Ministry.

06 October 2015

Source: The Hindu - Business Line

Jute bags could be considered for packaging tea also

The option of using jute bags to package tea can be explored in the coming days, Jute Commissioner, Subrata Gupta, said here late on Monday evening.

Speaking on the sidelines of the annual general meeting of the Tea Association of India, Gupta said "food-grade packing material" for coffee and cocoa has already been developed and options can be explored to extend the same to tea.

“We have developed food-grade packaging material for coffee and cocoa. Now the opportunity may well be explored to package teas,” he said.

Under the prevalent Jute Packaging Act, 1987, the use of jute bags is mandatory for packing foodgrain and other material weighing beyond 25 kg (a package).

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