Question : JUTE PACKAGING

(a) whether the Government has continued reservation for 100% jute packing for foodgrains and sugar;

(b) if so, whether the Government is aware that such reservation affects the plastic woven sack industries;

(c) if so, whether the Government is considering to dilute/repeal such provisions;

(d) whether Standing Advisory Committee had recommended 75% reservation for foodgrain and 20% for sugar under the Jute Packaging Material Act, 1987 for the jute year 2006-07; and

(e) if so, the final decision taken on the recommendation?

MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SHRI E.V.K.S. ELANGOVAN)

(a) to (e): The 14th Standing Advisory Committee (SAC) had recommended 75% reservation for Foodgrains and 70% for Sugar under the Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 for the Jute Year 2006-07 (July- June). However, the Central Government decided for continued reservation of 100% for both the aforesaid commodities during the Jute Year 2006-07. Accordingly, an Order dated 24.07.2006 was issued in the Official Gazette, prescribing 100% compulsory packaging for Foodgrains and Sugar. Such reservation has been made keeping in view the interests of the jute growers and the Jute Sector as a whole. The policy affects the plastic woven sack industries to a minuscule extent as all other commodities except Foodgrains and Sugar are out of the purview of such reservation. The Hon’ble High Court of Gujarat vide Order and Judgement dated 19.11.2006 in SCA No.19592-19594 has quashed the Order dated 24.07.06 and has ordered the Government to decide the matter afresh, and during the pendency, the recommendation of the 14th SAC would prevail. An Appeal has been filed against the said Judgement of the Single Judge before the Division Bench of the Hon’ble High Court at Ahmedabad. At present, there is no proposal to dilute/repeal the said provision.