The ban on imports of jute products from Bangladesh and Nepal into the country, as demanded by the Indian Jute Mills Association (IJMA), might encourage more use of alternative packaging materials, thereby causing loss to the jute industry, according to Mr S.R. Roy, Secretary, Gunny Trades Association (GTA).
GTA, according to Mr Roy, is strongly in favour of imports.
The annual prolonged and indefinite strikes by jute mill workers have caused irreparable damage to the consumers and users of jute cloth and bags for their packaging requirements, the Association said. “Many large industries have already switched over from jute bags to woven poly sacks and it is very regrettable that neither the mill owners nor the trade unions are concerned over the loss of these markets for jute products,” Mr Roy said.
Risks
Jute products imported from these two countries play a critical role in meeting the requirements of the users of jute bags. These supplies, when disrupted, might force the users to switch to alternative packaging, he observed.
“Our association, therefore, strongly opposes the move to ban imports. In fact, we feel that imports from these countries should be encouraged as it will not only result in a greater degree of competition and choice for the consumers but will also help in reducing the adverse balance of trade that these countries have with India,” he added.
The government and the sugar industry are the key buyers of jute products in the country and the prolonged strike has affected the supply of jute bags.
Source : Business Line