Govt steps in to check illegal jute imports

The Dollar Business Bureau

To ensure transparent and fair trade in jute products across Indo-Bangladesh and Indo-Nepal borders, the Ministry of Textiles has introduced a new guideline for the registration of importers. Under the new guideline, all traders and importers are required to register with the Office of Jute Commissioner. They will also need to file a monthly report on the imported jute products within four working days of the end of the month. If the reports are not filed within the given timeframe, the registration of the importers will be cancelled without any notification. As per the Packaging and Labeling Act, any food coming into the Indian market has to be packed. The new provision is aimed at ensuring transparency in jute imports. Under this rule, importers will have to apply for an "NOC" in a standard format to the office of the Jute Commissioner for every consignment. “A lot of jute bags coming into India from Bangladesh and Nepal are used bags. They are sold to the country’s huge private market. The used products are cheap, and the traders find their way into the market where there is no government’s supervision. Under this act, every importer has to be registered,” an industry expert told The Dollar Business. In July 2014, the total jute imports from Bangladesh jumped by 213% in terms of volume and 274% in value owing to illegal transportation of used jute bags. It is cheap to supply used bags to India’s vast private market. These bags are mostly of 50 kg, and they are used for packing food grains. “Especially in Nepal, there are large mafia gangs operating in this industry. They have an organised set up in the government departments from where they acquire IC Code easily. They use them to export used jute items illegally and earn hefty commission. The new initiative will keep a check on illegal transactions,” the expert said.  

                                                                                                                                                                                           September 28, 2015 | 1:33 pm IST