4,00,000 jobs could be impacted by refusal of food MNC,s companies to accept jute's bags for their sugar bags packaging . Indian Govt has made it mandatory for public companies ( JPMA) to use jute bags instead of poly bags for their supplies and procurement . This is to support ailing jute industry which gives jobs to thousands workers and farmers who grow jute . Food companies need to install few equipments to screen out foreign particles in sugar bags . Where as Jute manufacturers can innovate and manufacture bags which would remove objections from the food companies. Even plastic bags could bring contamination which any case requires sifters , magnets an other screening equipments to remove foreign particles .Bakery and Confectionery manufacturers are one of the biggest consumers of sugar .
In a body blow to the ailing jute industry in the country, major corporates like Coca Cola India, Cadbury, Nestle India and GlaxoSmithkline have outright rejected the supply of sugar in jute bags. These firms have argued that the jute fibres are contaminating the sugar that they use for manufacture of their products.
These corporate majors, have instead opted for supply of sugar packed in plastic bags.
The snub to jute bags by these corporates has come at a time when the Jute Commissioner's Office (JCO) and the Indian sugar industry have locked horns over the availability of raw jute and production of jute bags in 2010-11.
Over the past few months since the peak sugar season started, all the four food and beverage companies have written letters in phases to the Indian Sugar Mills Association (ISMA) expressing their concern over jute sacks and favouring packing their materials in polypropylene sacks.
ISMA in turn has taken up the issue with the Union Textiles Ministry and the Jute Commissioner's Office (JCO) in Kolkata.