Pleasing Left: Now jute on 145;essential146; list

In the dying moments of Parliament8217;s winter session, the government placed a Bill to amend the Essential Commodities Act, 1955, that or...

In the dying moments of Parliament8217;s winter session, the government placed a Bill to amend the Essential Commodities Act, 1955, that originally appeared during WW-I when a widespread shortage of food and essential items caused British rulers to pass an order for controlling production, supply and distribution of essential commodities.

But in a move that defeats the intent of the amendments, the government plans to retain a non-essential category of goods as 8220;essential8221; in a blatant attempt to please the Left8212;raw jute and jute textiles. The Act, which at one time included over 200 commodities including auto parts, cinema reels and battery cells, currently has 15 items. Post-liberalisation, the Act is one of the most severe impediments to free trade, as the demand, supply position in all commodities has altered radically.

A Standing Committee of Central and state ministers set up in 2001, had recommended that restrictions on movement of all agricultural commodities be removed so as to create a competitive environment for growth in the agriculture sector. However, in the Amendments Bill placed before Parliament, the government has chosen to retain seven categories of goods recommended by the ministries concerned to be retained as an 8220;essential commodity8221;, one of which is 8220;raw jute8221; and jute textiles. Here8217;s why this is a move to please the Left. Of the 78 jute mills in India, 61 are in West Bengal, three each in Bihar and UP, seven in Andhra Pradesh and one each in Assam, Orissa, Tripura and MP.

In the eastern region, specifically West Bengal, where jute production is concentrated, the sector directly employs about 2.76 lakh workers, supports around 40 lakh farm families and nearly 1.4 lakh people engaged in allied works.

S Majumdar, the Jute Commissioner of India says, 8220;The whole of eastern India depends on jute. It8217;s the only crop that grows apart from rice.8221; However, he believes 8220;jute will survive even without protection,8221; and doesn8217;t need to be part of the Act.

Officials in the Ministry of Food and Public Distribution deny that including jute in the Act is a political ploy. 8220;This is being done to protect farmers8217; interests and consumers. With plastic bags being banned, domestic demand for jute would pick up. Farmers should get a fair price and not get exploited by traders and mill owners, while consumers should be able to buy jute bags at reasonable prices.8221; Even for these reasons, jute8217;s continuation in the Act is bizarre as the government has come out with an unprecedented National Jute Policy in April 2005, aimed at comprehensively developing the sector.