Feasibility Study of Jute Products with a view to develop Ecolabel Criteria through LCA and stakeholder consultation

1. Feasibility Study of Jute* Products with a view to develop Ecolabel Criteria through LCA and stakeholder consultation

2. Table of Content Preamble and Introduction to Jute, a natural fiber Product categories Stakeholder Consultation Market survey of Jute Suppliers of Jute Life cycle environmental impacts Potential for Improvement Availability of data Current National and International legislation and agreements

3. Preamble Jute Manufactures Development Council (JMDC), Ministry of Textiles, Government of India has retained PwC Sustainable Business Solutions India to conduct the study on �Life Cycle Analysis Study of Jute to develop a Ecolabel�. The purpose of this ecolabel is to harness the emerging green markets in the European Union and the USA. These markets have a growing green customer base for sustainable and eco-friendly products. A type I ecolabel is envisaged that follows ISO 14024 requirements and ISO 14040 based LCA is used to frame the initial environmental criteria. As required in section 6.2 of this standard, a �consultation with interested parties� is needed in establishing product environmental criteria and product function characteristics. This document presents a summary of the �product category proposals� for ecolabel based on the feasibility study conducted.

4. Jute a natural fibre Jute is one of the most versatile natural fibres having applications in packaging, textiles and non-textile sectors. Jute is predominantly a rain fed annual crop. Its cultivation is labour-intensive. Jute has a significant impact in India�s economy, providing sustenance to more than 4 million people including jute farmers, workmen, labourers and self employed artisans and weavers, especially in the Eastern and North-eastern parts of India, where it is the mainstay of the agro based industries. World over, it has been recognized that jute and allied fibres occupy a unique position as eco-friendly, bio-degradable renewable natural fibres with substantial value addition at each stage of processing. Please visit the following websites for more information on Jute from India www.jute.com; www.jmdcindia.com.

5. Objectives of the consultation process The aims and objectives of this feasibility study leading to the consultation process are: to determine, for eco-labelling purposes, the structure of the eco-label to be established for selected six Jute products (Yarn, Hessian, Food grade jute bag, Jute geotextiles, Floor covering and shopping bag); to have a preliminary understanding of the environmental impacts that occur in the lifecycle of the recommended product group and to inform the selection of the environmental criteria. to identify specific jute product related disposal protocols in EU and USA

6. Product categories

7. Market survey � overall jute consumption trend globally

8. Market survey for Yarn

10. Market survey for Hessian

11. Market Survey of Food grade Jute Bag Globally synthetic packaging materials such as polypropylene sacks have been widely accepted for the packaging of agricultural commodities. In the developed countries mechanized bulk handling has also affected the use of Hessian and sacking. India has a success story of developing RBO technology (IJIRA) for developing hydrocarbon free bags particularly used for packing edible commodities. It has been made mandatory by the International Cocoa Organization for the packaging of Cocoa. These bags meet the international specifications of packaging. Besides, producers of cocoa, Coffee, hazelnuts, almonds, Brazilnuts may also feel the utility of packaging these commodities in food grade jute bags. India exports of these bags have increased from 2400 MT in 1999-2000 to 14200 MT in 2000-01 but declined to 5118 MT in 2001-2002;

12. Market survey for Jute Geo Textiles

13. Market survey for Jute Floor covering

14. Market survey for Jute Shopping bag

15. Jute : Product Supply chain

16. Suppliers in the market place The Unorganized agricultural sector : farmers grow jute and typically sell to primary jute markets The jute merchants form the link between the manufacturers and farmers; Jute conventional product manufacturers; jute mills: domestic and foreign producer and medium size enterprises procure raw jute from jute merchants; Jute diversified product manufacturer: small and medium size enterprises procure basic processed jute (hessians and yarns) for value addition to bags, carpets etc. Buyers association who actually source jute products from manufacturer and supplies to the end user. After the useful life, most jute products can be reused, recycled or disposed through a waste manager as a municipal waste Jute that is wasted can be sent to a waste to energy plant as a climate neutral energy source or disposed in a landfill with methane capture

17. Life Cycle Impacts(Hessian)

18. LCA � Jute Product Example

19. Environmental Impact of Jute Hessian

20. Potential and need for Improvement

21. Potential and need for Improvement (Contd.)

22. Availability of data

23. Current Indian legislation for Jute

24. Current Indian legislation for Jute Water Act and amendments The Water (Prevention and Control of Pollution) Cess Act, 1977, The Air Act and amendments Environmental (Protection) Act and rules Prohibition on the handling of Azodyes Rules The Manufacture, Storage and import of Hazardous Chemical Rules, 1989 and Amendment rules 2000 The Hazardous Wastes (Management and Handling) Rules, 1989 and Amendment rules 2000 and 2003 Notification regarding Dumping and disposal of fly ash discharged from coal or lignite based thermal power plants on land S.O.123(E), [14/2/2000] - Noise Pollution (Regulation and Control) Rules, 2000 and Amendment rules 2002 The Public Liability Insurance Act, 1991, Amended, 1992/ Rules1991 as amended, 1993. The Indian Electricity Act, 2003 & Rules 1956 as amended in 2002 Contract Labour (Regulation & Abolition) Act, 970 & Its Central Rule 1971 The Workmen�sCompensation Act 1923 as amended up to 2002/ Rules, 1923 as amended, 1998 The Factories Act 1948 (as amended till 2001) The Boilers Acts 1923 (as amended in 1962) & Rules 1950

25. Current Indian legislation for Jute

26. International Treaties / Conventions / Declarations � India signatory The following Treaties/ conventions/ declarations are signed by India: Agenda 21 Rio Declaration Stockholm 1972 Convention on Biological Diversity Convention to Combat Desertification Stockholm Convention on Persistent Organic Pollutants (POPs), (signed by India, but yet to be ratified) Cartagena Protocol on Biosafety The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes Kyoto Protocol to the United Nations Framework Convention on Climate Change Intergovernmental Panel on Climate Change (IPCC) Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) World Trade Agreement Helsinki Protocol to LRTAP on the Reduction of Sulphur Emissions or their Transboundary Fluxes by at least 30 percent Sofia Protocol to LRTAP concerning the Control of Emissions of Nitrogen Oxides or their Transboundary Fluxes (NOx Protocol) Geneva Protocol to LRTAP concerning the Control of Emissions of Volatile Organic Compounds or their Transboundary Fluxes (VOCs Protocol) United Nations Conference on the Human Environment United Nations Conference on Environment and Development (UNCED) Framework Convention on Climate Change (FCCC) Convention Secretariats of the UNEP

27. EU specific: Dyes that is carcinogenic, mutagenic or toxic to reproduction: Council Directive 67/548/EEC of 27 June 1967 on the approximation of the laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances (1), and its subsequent amendments. Directive on the landfill of waste: COM (91) 102 (OJ C 190, 22.7.91): as amended by COM (93) 275 1999/31/EC- Landfill Directive Statutory Instrument 2002 No. 2980 The Waste Incineration (England and Wales) Regulations 2002 EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 94/62/EC of 20 December 1994 on packaging and packaging waste LANDFILL DIRECTIVE REGULATORY GUIDANCE NOTE 5 (version 1.2 January 2003) Waste Framework directive, (75/442) Hazardous wate directive (91/689) EWC (2001)- included hazourdous and non hazardous into one consolidated list Landfill regulation , 2002 UK specific: The Producer Responsibility Obligations (Packaging Waste) Regulations 1997 (as amended) the Producer Responsibility Obligations (Packaging Waste)(Amendment) Regulations SI 1999 No. 1361 the Producer Responsibility Obligations (Packaging Waste)(Amendment)(No.2) Regulations SI 1999 No. 3447 the Producer Responsibility Obligations (Packaging Waste)(Amendment)(England and Wales) Regulations SI 2000 No.3375. the Producer Responsibility Obligations (Packaging Waste) Amendment (Scotland) Regulations 2000 (SSI 2000 No. 451) the Producer Responsibility Obligations (Packaging Waste)(Amendment)(England) Regulations SI 2002 No. 732 the Producer Responsibility Obligations (Packaging Waste)(Amendment)(Scotland) Regulations 2002 SI 2002 No. 147 The Producer Responsibility Obligations (Packaging Waste)(Amendment)(Wales) Regulations 2002 SI 813 (W.93) 1972 - Deposit of Poisionous Waste Act - cyanides etc 1974 - Control of Pollution Act � dilute and disprese (or attenuate) + licencing of facilties 1990 - Control of Pollution Act � separated regulation from operation The UK Environmental Protection Act 1990 German specific: German Packaging Law (GERMPACK) Germany's packaging take-back law Packaging and Waste laws in EU and USA

28. USA specific Identification of Solid and Hazardous Wastes (40 CFR Part 261) Land Disposal Restrictions (LDRs) (40 CFR Part 268) Used Oil Management Standards (40 CFR Part 279) Comprehensive Environmental Response, Compensation and Liability Act Emergency Planning And Community Right-To-Know Act Clean Water Act Safe Drinking Water Act Toxic Substances Control Act Clean Air Act Clean Water Act (CWA) Clean Air Act (CAA) Resource Conservation and Recovery Act (RCRA) , 1976 Packaging and Waste laws in EU and USA

29. Questionnaire for stakeholder consultation Questionnaire � please mark one or more options Q1. Do you consider jute to be eco-friendly alternative to synthetic products? Please explain. (To know more about Indian jute please visit http://www.jmdcindia.com) Q2. What do you think are the major economic and environmental barriers to the use of jute? a) plastic and other synthetics are cheaper b) synthetics are easier to recycle and/or dispose as compared to jute c) jute has more environmental impacts as compared to synthetics d) any other, please write

30. Questionnaire for stakeholder consultation � contd� Q3. Which part of the life cycle of jute do you consider an environmental issue? Please explain your choice. a) agricultural practices of jute b) manufacture of jute products c) transportation of jute goods d) use of jute as packaging material, carpets, bags etc. e) disposal of jute to the environment f) any other Q4. How do you think jute should be disposed in your country / local context? a) jute should be incinerated b) jute should be landfilled in managed landfills c) jute should be used in a garden or in farming to blend with soil d) jute should be recycled for alternate materials such as non-woven fabrics that are used in gardening

31. Questionnaire for stakeholder consultation � contd� Q5. Which industries in your country use jute? a) packaging of food and non-food products � jute bags, Hessian sacks etc. b) carpet and floor coverings c) shopping bags and decorative items d) geo-textiles in civil engineering applications � soil saver, slope protection etc. e) any other use such as in automobiles etc. please state if any. Q6. If environmental information on jute is made available through an ecolabel, do you think there could be wider acceptance of jute products? Please explain. Q7. If your answer to Q6 was yes, then how the ecolabel should be propagated in your country? a) by engaging product associations b) by advertising in magazines / newspapers c) by launching a website on eco-jute products d) any other

32. Questionnaire for stakeholder consultation � contd� Q8. Are you aware of any buyer who purchased any of the jute products like jute yarn, hessian, Food grade jute bags, Floor covering, shopping bags and Jute Geotextiles from India?(Please specify the No. of buyers) a) 1 b) 1-10 c) 10-20 d) More than 20 Q9. What are the other competing alternate products(synthetic or natural) to the following jute products in your country? Jute Products Competing Alternatives(Both synthetic and natural) Jute Yarn Hessian Food grade Jute bags Shopping bags Floor covering Jute Geotextiles

33. Questionnaire for stakeholder consultation � contd� Q10. If you have any query or comment, please feel free to share with us. Your comments: Thank you for taking time to respond. We would like to share information with you periodically and be grateful if you respond with your comments and suggestions.

34. Results of Consultation with interested parties in Indian jute industry To select the product category, initial consultation was made with interested parties, mostly suppliers of both conventional and diversified jute products. The overall consultation process regarding Jute products can be concluded as follows:

35. Results of Consultation with interested parties in Indian jute industry

36. Socio-economic footprint of jute In the National Jute Policy 2005, Government of India recognizes the importance of jute to farmers and workers, and to the economy of jute growing states, and its special ecological importance world-wide, resolved that �the jute industry will receive a fresh impetus in all respects�. Government recognizes the significance of jute in India�s economy, providing sustenance to more than 4 million people (who earn less than a dollar a day per family) including jute farmers, workmen, labourers and self employed artisans and weavers, especially in the Eastern and North-eastern parts of the country, where it is the main stay of agro based industries. World over, it has been recognized that jute and allied fibres occupy a unique position as eco-friendly, bio-degradable renewable natural fibres with substantial value addition at each stage of processing. Government also recognizes the fact that this important sector of the economy has not been given its due importance in the recent past.

37. Socio-economics of Jute Jute provides not just raw material for industry but a life support system for over 4 million farmers, 6 million workers in auxiliary industries and innumerable thousands of lives virtually entwined in the bright twists of this golden fibre. The jute industry is considered to be one of the most labour intensive, providing direct employment to about 2.61 million workers. Moreover, it supports the livelihood of around 4 million farm families and around 1.4 million people engaged in tertiary sector and allied activities. It is estimated that nearly 80 million people depend on jute cultivation, trade and industry, directly or indirectly, wholly or partly, for their livelihood. In addition to this, there are over 50,000 workers engaged in the jute mills who are not in the Company�s Pay Roll.

38. Sustainability vision for Jute In its vision for the Jute sector, the Government of India recognizes that the Indian Jute Sector is endowed with multifaceted advantages and hence it shall be the policy of the Government to develop a strong and vibrant sector that can: Ensure remunerative prices to the jute farmers in the country; Produce good quality fibre and products to meet the growing needs of the country and international buyers; Increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and Compete with confidence for an increasing share of the global market.

39. WTO on Jute Negotiations on environmental goods presently taking place in Negotiating group on non-agricultural market access (NAMA) with the definitional aspects being examined by Committee on Trade and Environment (CTE)-special session Many developing countries including India (TN/MA/W/10) have supported inclusion of environmentally friendly products such as jute products or those based on biodiversity, but no specific list has been submitted to the negotiating group on Non-Agricultural Market Access NAMA.