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Kohinoor Mandal

Both cement and fertiliser industries have been exempted from the mandatory orders. While the cement industry was freed in 1997, fertiliser industry was freed in 2001.

KOLKATA, Sept. 7

THE Jute Commissioner's Office has pulled up all the leading cement and fertiliser companies for violating the mandatory packaging orders under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

According to Mr S. Majumdar, Jute Commissioner, notices have been issued to 58 cement units, including L&T, ACC, Birla Cement, Gujarat Ambuja, and 26 fertiliser units in this regard. Incidentally, Birla Corporation has moved the Calcutta High Court against the notice and its plea has been upheld.

"Yes, I am aware that some of the affected parties have moved the court, but I have nothing much to say on this. This is a legal matter. As far I am concerned, I am questioning the cement and fertiliser companies for violating the law when it is applicable to them'', Mr Majumdar told Business Line.

He failed to indicate the total time that would be needed to complete the process. "This is a legal matter and it will take some time'', he said.

Interestingly, both cement and fertiliser industries have been exempted from the mandatory orders. While the cement industry was freed in 1997, fertiliser industry was freed in 2001.

It is well documented that from 1994-95 (when 70 per cent of cement packing was reserved for jute bags) to 1997 the cement companies had violated the order. From 70 per cent reservation the proportion was reduced to 50 per cent in 1995. For the fertiliser sector, reservation was 100 per cent in 1994. It was diluted to 65 per cent in 1995, further reduced to 20 per cent in 1998, and finally exempted in 2000. This sector too violated the order throughout this period. Even so, jute bags were also used to some extent.

All the three industries - cement, fertiliser and jute - are surprised over the recent actions of the Jute Commissioner. A fertiliser industry source said there was "no rational explanation'' behind this "sudden turbulence'' in the Jute Commissioner's office.

In fact, the Indian Jute Mills' Association has filed court cases way ago in 1995 and 1996 on the violation of the mandatory orders but the matter was hardly heard. A top IJMA executive failed to recollect such a major exercise being under taken by the Jute Commissioner on the issue of violation of the mandatory orders.

Incidentally, last year, the Principal Director of Audit, Central Kolkata, after going through the records of the Jute Commissioner's Office, had stated that the Union exchequer had lost over Rs 3,522 crore due to non-implementation of the Act in "proper perspective''.

Mr A.V. Srinivasan, Secretary-General of Cement Manufacturers' Association, told Business Line from Delhi that his organisation was not party to the case. "However, the association has written to the Union Industry Ministry to take up the matter with the Union Textile Ministry'', Mr Srinivasan said.

According to him, the Jute Commissioner issued the first notice in 1996 and it was duly replied to. "You cannot wake up after six years and say that the replies filed by our members were inadequate. The matter is dead by now'', he said.

It was his view that the Union Textile Ministry had already accepted the cement industry's views on the matter and the sector has been exempted.

There was no official comment from the Fertiliser Association of India on the issue. However, sources said the association had decided not to take up the matter with the Government. Instead, it would ask the individual companies to tackle the issue.

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