Calcutta, Oct. 19: The Union textile ministry has asked the Bengal government to generate additional demand for jute bags within the state and provide administrative support to the jute commissioner to prevent illegal import of jute products from Bangladesh and Nepal.

In a letter to state chief secretary Sanjay Mitra, textile secretary Sanjay Kumar Panda expressed concern about the closure of mills and reduction in shifts in others on account of a fall in demand for jute goods.

The ministry attributed a major part of the lack of demand to the Punjab government’s decision to buy less sacks during the kharif season (May-October 2014). While assuring that the matter will be taken up with the Punjab government, Panda asked Mitra to develop the demand for jute goods within Bengal to prevent closures and large-scale unemployment. Bengal houses 75 per cent of the total mills in the country.

The textile ministry further pointed out that the rice mills in the state were not adhering to the 90-per-cent mandatory packing of foodgrains under the Jute Packaging Materials Act, 1987. It has estimated that an additional demand for over 3 lakh bales can be procured from the director-general of supply and disposal if the procedure is followed.

The textile ministry has also urged the state government to explore the use of jute bags to pack potatoes and use jute geotextiles in the development of infrastructure.

The ministry has expressed concern over illegal import of jute bags from Bangladesh and Nepal. The ministry also urged the state government to provide administrative support to the jute commissioner to prevent such imports.

The Union minister of state for textile Santosh Kumar Gangwar and commerce minister Nirmala Sitharaman on October 11 had met representatives of the mills in Calcutta to take stock of the industry issues.

Jute industry body IJMA had said they were in favour of imposing a countervailing duty on imports from Bangladesh to create a level-playing field.