1.8 Suggested Action Plan
The suggested action plan for improving the present status of the Indian Jute industry and to reduce the unhealthy competition between Jute bags and H.D.P.E. bags is summarized below:
i) The Jute mills should not totally depend on ‘Jute Packaging Materials Act’ but should try and improve Jute bags, manufacture diversified Jute products etc. The jute mills should carry out research in house on product improvements, new products development etc.
ii) It is recommended that the Government of India should modify the “Jute Packaging Materials Act’ with the respect to the following:
a) 100% of Foodgrains, Sugar & Oilseeds to be packed in jute bags, since jute bags are better suited for these sectors.
b) The share of Jute bags in packing of cement, fertilizers and urea should be reduced to 40% (year 1991-92), gradually to 10% (by year 1995-96) and not jute bags to be used for there sectors since use of jute bags causes huge loss of revenue due to material seepage (estimated at Rs. 270 crores for year 1990-91).
c) For packing of Cement, Urea & Fertilizers, Polyjute bags should be provided a packaging share of 10% (year 1991-92) which should go up gradually to a maximum of 40% by the year 1996-97 and onwards. H.D.P.E. bags should be provided maximum share of these segments with 50% (Year 1991-92) which should be gradually increased to a maximum of 60% by the year 1995-96. Based on the above suggested share patterns, it is estimated that the H.D.P.E bags manufacturers would be able to utilize their full installed capacity of 1.6 lac tonnes by the year 1994-95.
iii) Jute research institutes i.e. IJIRA should concentrate more on development of diversified jute products, related technology and low cost machines which could be transferred to the Jute industry.
iv) In order to assess the domestic and export market for diversified jute products, improved jute products etc. it is suggested that a detailed Market Survey be carious out. Such surveys could highlight lucrative jute products which could be manufactured by the Jute industry. Organizations i.e., JMDC, IJMA etc. can play a vital role.
v) For tapping the Vast International market, organization i.e. JMDC etc. should undertake efforts for promotion and demonstration of new jute products. They should participate actively in World Textile fairs, organise buyer-seller meets, Seminars etc.
vi) It is suggested that Jute goods manufacturers should actively participate in Trade fairs, Exhibitions etc. being held in Indiana from time to time. This would create greater awareness among the people regarding new jute products and their applications.
vii) The jute mills of manufacturing polyjute bags would require H.D.P.E. tapes from the H.D.P.E. bags manufacturers organizations i.e. IJMA, PLASMA etc. can play a vital role in coordinating the supply and establishing understanding between the two industries.
viii) In order to encourage modernization fn product diversification in the jute industry on a larger scale it is recommended that the Government of India should also finance additional working capital requirements of the Jute Mills (arising from modernization) under the “Jute Modernization Fund Scheme” to make the modernization process complete.
ix) It is recommended that TIFAC should initiate further studies on polyjute bags, JRP boxes/chests, other diversified jute products to evaluate in-depth the techno-economic feasibility, end users acceptance and long tern potential of these options.
