Plastic Laminated Sacks: Cement, sack producers urge govt to defer decision
KATHMANDU, AUG 24 -
As the government deadline to cement producers to requiring them to pack cement in plastic laminated bags getting over on Monday, the producers of cement and sack have asked the government either to make the system optional or defer the decision at least for another next three years.
The government, in a notice published in Nepal Gazette on May 28, had provided 91 days for cement and limestone manufacturers and importers to switch packaging to plastic laminated sacks.
Atmaram Murarka, president of Cement Producers’ Association (CPA) argued that the government’s move was not justifiable given that there are no factories in the country that can produce plastic-laminated sacks. “Implementation of this directive will result in closure of all cement and sack factories that will put an investment of more than Rs 50 billion at risk,” Murarka warned, while addressing a press meet on Thursday. He demanded the provision be either made optional or the manufacturers be given three-year deadline.
At the joint press meet organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), CPA, and Nepal Woven Fabric and Sack Producers’ Association, entrepreneurs asked the government to revoke its decision. The manufacturers said that since there was no possibility to start supplying cements in laminated bags after four days, market would face a shortage of cement, and would affect sectors including housing and hydropower project.
“The implementation of the government’s decision will badly affect the supply of cement in the market,” said Manish Agrawal, vice-president of the Employers Council, FNCCI. He added that the government must come up with a practical alternative at the earliest.
There are 40 cement factories in the country that need around 80 million sacks per year. At present, 12 sack factories have been producing woven fabric sacks to address the demand of the local manufactures. The industry, established with the investment of Rs 5 billion, employs over 2500 individuals.
“The government should hold extensive discussion with all stakeholders concerned and come up with a logical time to adopt new system as it is the matter of around Rs 5 billion invested in sack factories,” said Chandi Raj Dhakal, former president of the FNCCI. He added the government decision looked like coming in a “planned way” to offer benefit to certain people rather than allaying negative impact on investors.
Laminated bags are being widely used in others countries, including neighbouring India. However, it has not been made mandatory there. Sack producers said that since the technology was expensive, it would be difficult to see such factories being established any time soon. “The government should show us the papers that prove our products are not environment friendly,” said Basudev Golyan, president of the sack producers’ association. He added that the government should have conducted the Initial Environmental Examination before coming up with such decision.
Source: The Kathmandu Post
