Public CompanyPaper industries demand rollback of bamboo price hike
The paper industries in Orissa have urged the state government to roll back its move to raise the selling price of the bamboo.
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There are two paper mills - JK Paper Mills of the JK Group and Sewa paper mills of Ballarpur Industries Limited (BILT) operating in south Orissa. In a recently held meeting, the empowered committee on bamboo in the state, headed by the Chief Secretary, has decided to increase the selling price of the bamboo to Rs 2600 per tonne in 2009-10 as against Rs 2100 per tonne in 2008-09. The price revision is being done in view of the hike in minimum wages by the state government from July this year.
While the cost of forest operation increased from Rs 1350 to Rs 1750 per tonne, the royalty, silvicultural charges and commission to the state owned Orissa Forest Development Corporation (OFDC) increased from Rs 500 to Rs 550, Rs 70 to Rs 90 and Rs 180 to Rs 210 respectively.
“The selling price of the bamboo including the forest operations, royalty and commission charges are revised due to the revision of the minimum wages of the labourers and also taking into account several other aspects”, one of the members of the empowered committee told Business Standard. The paper industries in the state, however, want a rollback in the revised price.
“We have already informed the special secretary of the forest department about our difficulties and he has promised to look into the issue”, said MC Goel, executive vice president (works) of JK Paper Mills. He hoped that the government would rollback the enhanced selling price of the bamboo to achieve the maximum utilization of the raw material.
Last year, JK Paper had utilized 33,000 tonnes of bamboo against the allotment of 45,000 tonnes. Law and order problems in the area, increase in temperature in the forest areas and reluctance of the labourers to work were some of the reasons for the low procurement of raw material last year, Goel informed.
Meanwhile, the Orissa Forest Mazdoor Union has urged the government to immediately start the bamboo operations to protect the livelihood of around 50,000 forest workers.