Rules designed for mandatory use of jute sacks
The government has framed new rules to enforce a compulsory use of jute sacks to pack food grains and other items.
The compliance with the law is expected to give jute goods makers and farmers a cushion from a slump in prices due to reduced demand for jute items abroad.
The rules gazetted early this month will come into effect in August for public and private sectors. It will also be applicable to goods imported in bulk, according to the rules.
Businesses have largely been ignoring the law passed in October 2010, as the authority could not enforce it due to absence of the rules.
But rice millers expressed concern that the use of jute sacks would put a extra price burden on them due to high prices of the bags.
"It will make a positive impact on the industry," said Najmul Huq, chairman of Bangladesh Jute Mills Association (BJMA).
An advisory panel headed by Textiles Secretary Md Ashraful Moqbul will determine the amount of food grains and other items to be packed by jute sacks next month based on the annual availability and production of jute and sacks.
Formation of the rules has cleared ways to enforce the law, the secretary said.
"The increased domestic use of jute will prevent prices from falling amid reduced demand in international market. So it will protect farmers' interest to grow jute."
"We will be able to bargain more with the buyers with the enforcement of the law," said Huq.
The BJMA, however, said the industry can not take full advantage of the compulsory packaging act, as there is shortage of sacks.
Of the 30 crore pieces of jute sacks produced by public and private jute mills a year, 10 crore pieces are exported, said Huq.
So far, three state agencies -- Bangladesh Agricultural Development Corporation, Directorate General of Food, Bangladesh Sugar and Food Industries Corporation -- have started using the sacks.
But private sector businesses, including rice millers, flour processors and sugar refiners, have not yet started using the sacks due to its higher prices than the polypropylene bags.
A polypropylene sack costs Tk 13-15, but a jute bag requires Tk 50-55, said Layek Ali, convenor of Bangladesh Auto Major and Husking Mill Owners Association.
"We have no problem in using jute sacks to pack rice. But such use of sacks will increase prices of rice at consumer level."
"We sell rice in bags. So it is difficult for us to use the sack again.”
Rice prices would also go up by Tk 1 a kilogram due to the use of jute bags, he said. “Jute sacks may have higher prices, but these could be used two times more than the polypropylene ones.”
Ali said millers use jute sacks for paddy, not for rice.
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