Proposal to remove jute from Essential Commodities list

KOLKATA: In a significant development the Union textile ministry has proposed to bring raw jute and jute textiles out of the purview of the Essential Commodities (EC) Act.
The joint secretary (textile), Atul Chaturvedi, has asked the Jute Commissioner (JC), S Majumdar, to send him a detailed report on the after "examining the pros and cons of removing raw jute and jute textiles from the EC Act".
Bringing raw jute and jute textiles out of purview of EC Act means the end of protectionism to the jute industry. The Union textile ministry feels that its proposal stems from the concept of "repositioning the jute industry to become an internationally competitive industry in the country against the backdrop of liberalisation".
According to the textile ministry, there was no need to control production of jute textiles since jute was already covered under the minimum support price (MSP) fixed by the government. Besides, the ministry was of the view that since the JC has powers to notify MSP for different varieties and grades of jute, the price of value added items could be left to the market forces.
This means that if raw jute is brought out from the purview of EC Act then it would mean the end of MSP for raw jute as well as fixing the price for value added products. It also indicates that the Mandatory Jute Packaging Act would become "armless".
The textile ministry is insistent on bringing raw jute and jute textiles out of purview of EC Act for it feels that the jute industry "needs to be freed from the shackles of regulations".
Meanwhile, the Indian Jute Mills'' Association (IJMA) had convened an emergency meeting last week to discuss the issue. The IJMA is expected to hold another round of meeting soon and submit its opinion on the textile ministry''s proposal.