Cement manufacturers have opposed the provision of mandatory use of jute bags, saying the legal obligation could hike prices of the key construction material.
Parliament passed the 'Mandatory Jute Packaging Act 2010,' last year, making the use of jute bags for packing food stuff, agriculture produces and cement legally binding. The law aims to promote the use of eco-friendly jute bags.
President of Bangladesh Cement Manufacturers Association (BCMA) Mustafa Kamal said jute packages are not suitable for preserving cement for long, making its storage difficult.
In addition, he said, huge dust might come out at the time of loading and unloading of cement, which will be harmful for public health and environment.
BCMA leaders said that the mandatory use of jute bags might raise the cost of per bag cement by Tk 60-70 taka, because a jute bag costs Tk 80-90, while its plastic alternative costs only Tk 18-20.
"This type of decision might hamper the infrastructural development of the country and export growth in this sector as well," he added.
According to the law, manufacturers will be required to use packaging materials made of at least 75 per cent jute fibers.
Industry also said the country's jute mills have a capacity to supply at best 40 per cent of the total demand, which may trigger supply shortage.
Md. Shamsul Haque, a director with Bangladesh Jute Mills Corporation (BJMC), said jute production is increasing rapidly, thanks to the government's some bold steps.
He said that national production of jute in the current fiscal year rose to 7.0 million tones, up from 5.0 million tonnes last fiscal.
Mr. Haque, however, agreed that the current production of jute bags could disrupt supply and said the government should enforce the law in phases before jute mills ramp up production.
"In the early 80s, India put such restrictions. Still, they are practicing the same," he added.
Mr. Haque also said that the United Arab Emirates has also taken a decision to stop plastic bag use by 2013.
President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Shahedul Islam Helal said unless the government subsidises users, the price difference between jute and synthetic bags will be a major factor since use of jute bags may contribute to the escalation of prices of essentials.
First vice-president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin said Wednesday that implementation of the act will depend on availability of jute bags, price difference between jute and synthetic bags, and technical problems in using jute bags for different items.
Jashim Uddin, a member of the law implementation committee said jute mills have to ensure adequate supply of jute bags.
He noted that the content of the act was not discussed with stakeholders before it was railroaded through the parliament.
President of Bangladesh Jute Goods Association Kamran Uddin said initially, it will be tough to catch up with the demand of jute bags, but insisted that supply could be boosted.
He favoured the act and said if the government takes step to implement it, production cost will go down, which will ultimately put a positive spin on jute exports.
http://www.thefinancialexpress-bd.com/more.php?news_id=130928&date=2011-03-31
Parliament passed the 'Mandatory Jute Packaging Act 2010,' last year, making the use of jute bags for packing food stuff, agriculture produces and cement legally binding. The law aims to promote the use of eco-friendly jute bags.
President of Bangladesh Cement Manufacturers Association (BCMA) Mustafa Kamal said jute packages are not suitable for preserving cement for long, making its storage difficult.
In addition, he said, huge dust might come out at the time of loading and unloading of cement, which will be harmful for public health and environment.
BCMA leaders said that the mandatory use of jute bags might raise the cost of per bag cement by Tk 60-70 taka, because a jute bag costs Tk 80-90, while its plastic alternative costs only Tk 18-20.
"This type of decision might hamper the infrastructural development of the country and export growth in this sector as well," he added.
According to the law, manufacturers will be required to use packaging materials made of at least 75 per cent jute fibers.
Industry also said the country's jute mills have a capacity to supply at best 40 per cent of the total demand, which may trigger supply shortage.
Md. Shamsul Haque, a director with Bangladesh Jute Mills Corporation (BJMC), said jute production is increasing rapidly, thanks to the government's some bold steps.
He said that national production of jute in the current fiscal year rose to 7.0 million tones, up from 5.0 million tonnes last fiscal.
Mr. Haque, however, agreed that the current production of jute bags could disrupt supply and said the government should enforce the law in phases before jute mills ramp up production.
"In the early 80s, India put such restrictions. Still, they are practicing the same," he added.
Mr. Haque also said that the United Arab Emirates has also taken a decision to stop plastic bag use by 2013.
President of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) Shahedul Islam Helal said unless the government subsidises users, the price difference between jute and synthetic bags will be a major factor since use of jute bags may contribute to the escalation of prices of essentials.
First vice-president of the Federation of the Bangladesh Chambers of Commerce and Industry (FBCCI) Jashim Uddin said Wednesday that implementation of the act will depend on availability of jute bags, price difference between jute and synthetic bags, and technical problems in using jute bags for different items.
Jashim Uddin, a member of the law implementation committee said jute mills have to ensure adequate supply of jute bags.
He noted that the content of the act was not discussed with stakeholders before it was railroaded through the parliament.
President of Bangladesh Jute Goods Association Kamran Uddin said initially, it will be tough to catch up with the demand of jute bags, but insisted that supply could be boosted.
He favoured the act and said if the government takes step to implement it, production cost will go down, which will ultimately put a positive spin on jute exports.
http://www.thefinancialexpress-bd.com/more.php?news_id=130928&date=2011-03-31
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