A shortage of jute bags hurts storage of a bumper wheat crop in India

An article in the Wall Street Journal (June 23, 2012) describes the large wheat harvest in India, but a shortage of jute bags. Indian law specifies that 100% of the wheat should use jute bags, to protect the industry and its employment. But while wheat production has grown 82% since 1990, jut production has grown only 33%. Options to import from Bangladesh are blocked by a desire to apply the rule only to Indian jute. But the jute industry claims orders were placed late, not that there was a shortage of capacity. Given the desire to protect jute bag production, while preventing the 13% of possible output wasted, what should the government do? Should plastic bags replace jute to protect the harvest? Who should be held responsible for the wasted output, when malnutritution remains rampant ?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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