In a 21-page confidential report prepared by CII's senior adviser, TK Bhaumik, for the National Level Joint Task Force comprising of representatives from the apex chamber and the West Bengal government, the state government and the jute mill owners were severely criticised for the poor state of the industry.

Bhaumik in his report suggested scrapping of the Jute Packaging Materials (Compulsory use in packaging commodities) Act of 1987 as a long term measure for the revival of the jute industry. It also suggested that bodies, including the research and development wings, which are working for the jute industry be merged with the Jute Corporation of India.

In one of its five suggestions for the industry, Bhaumik writes: "Jute PackagingMaterials (Compulsory Use in Packaging Commodities) Act, 1987 may be abolished. Abolition of this Act is essential in the interest of modernisation and product upgradation and aggressive marketing that the industry needs to do."

His other two suggestions are related to the merger of the jute bodies with Jute Corporation. In the first instance he writes: "The institutions meant for controlling and development of the industry, including production of jute and its distribution, may all be merged into a single Jute Corporation of India."

Bhaumik repeated that this agency can look after the overall development of jute and jute goods. For the R&D centres, he suggested a similar merger into one entity, which can work in coordination with Jute Corporation.

At present, there two major bodies, National Council for Jute Diversification and Jute Manufactures Development Council working for the development of jute industry. In the R&D wing, there are are three institutions. They are Indian Jute Industries ResearchAssociation, the R&D wing of Indian Jute Mills Association under the Union textile ministry, and National Institute for Research on Jute & Allied Fibres & Technology and Central Research Institute for Jute & Allied Fibres under the Indian Council for Agricultural Research (ICRA).

The report criticised the mill owners for their disinterest in modernisation and of being hand-in-glove with raw jute traders to manipulate fibre prices. According to Bhaumik the mill owners claim of raw material cost as the main cause for the industry's sickness is not always true.

"...problems are not entirely genuine. For instance, so far as raw material cost is concerned, it is true that the cost has gone up substantially, but this is mainly due to control exercised by the jute merchants," the report says.

The report pointed out that the jute industry should be re-organised to eliminate fly-by-night operators. "It may be mentioned that the present demand can be easily met even if a few mills are closed down," Bhaumikstated.

Criticising the West Bengal government he stated: "...the state government provides certain relief/concessions to the existing sick units. This policy, as we understand, has been encouraging sickness in the industry and may be discontinued." Bhaumik terms as "unsustainable" millowners' complaints that they cannot modernise because imported machinery is too costly while the latest machines are not made in India.

Trade union leaders have been given the stick for neglecting workers' interests. As for the 18 trade unions in the industry, the report says: "...they have failed to play its due role of promoting the interest of the workers and their well being. Ill-managed companies continue to exploit workers and flout the labour laws."