Sugar mills express concern over mandatory 100% packaging of sugar in jute bags

LUCKNOW: Private sugar mills have expressed concern over the Cabinet Committee on Economic Affairs order that 100% of sugar produced be packaged in jute bags. The sugar industry said that the decision would further hurt the financials of sugar companies already reeling under the impact of increased cane price.

The prices of jute bags for private players is not controlled like it is done for government agencies. When contacted the Indian Sugar Mills Association said that jute bag prices are open to undue variation and hikes by jute mills and traders which leads to escalation in the cost of producing sugar.

ISMA said that this would not only lead to a burden on sugar mills but also the common consumers. ISMA said that the sugar industry should not be penalised and forced to buy juet bags at high rates when better quality HPDE bags are available. It said that the government should either give subsidy to sugar mills for the high cost of jute bags or restrict the mandatory 100% packaging in jute bags to foodgrains only.