Calcutta, April 19: The jute industry is concerned over the government's proposal to exempt wheat from mandatory packing.

At present, 90 per cent of the foodgrain production and 20 per cent of sugar output have to be packed in jute bags, with a further dilution in case of a shortfall.

However, the scarcity in the availability of raw jute and supply backlog have prompted the department of food and public distribution to consider seeking cabinet permission to keep wheat out of the purview of mandatory packing under the Jute Packaging Materials Act, 1987.

In the current rabi season (December 2015 to April 2016), mills are looking to supply around 2 lakh bales per month against a total requirement of 13.43 lakh bales during the period. Based on the shortfall, the procuring agencies have been allowed to use 4.96 lakh bales of plastic bags.

According to industry sources, the move to exclude wheat is likely to impact up to 25-30 per cent of the production of jute goods.

"Over the years, there has been several dilutions in the jute packaging materials act. Besides foodgrain and sugar, cement and fertilisers used to be covered under the act. However, they were gradually removed and the amount of sugar packed has also come down. If wheat is removed, it would be a big blow for the sector," an industry source said, adding that the ongoing jute year (July 2015-June 2016) has seen unprecedented shortage of the fibre resulting in a rise in prices. The steps taken by the office of the jute commissioner to control prices have already cost the industry over Rs 100 crore.

The Indian Jute Mills Association has asked textile secretary Rashmi Verma not to take a hasty decision in view of the industry's performance this year.

A senior textile ministry official said if the entire amount of wheat packed using jute bags was exempted at one go, it would be detrimental to the farmers as well as the mills.