Govt makes jute packaging must for food grains, sugar

The government on Wednesday approved mandatory use of jute packaging material for foodgrains and sugar, a move which will provide relief to 3.7 lakh jute mill workers. The Cabinet Committee on Economic Affairs in its meeting today dcided that at least 90 per cent of foodgrain output and 20 per cent of sugar production has been reserved for packaging in jute.

The mandatory use of jute in packaging is for the Jute Year 2015-16 (July 1, 2015 to June 30, 2016). "The decision will provide relief to 3.7 lakh workers employed in jute mills and ancillary units as well as support the livelihood of around 40 lakh farm families," an official release said. Under the Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 (JPM Act), the government is required to consider and provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interest of production of raw jute and jute packaging material and of persons engaged in the production.

As per the CCEA decision, at least 90 per cent of foodgrains produced and 20 per cent of the sugar production has been reserved for packaging in jute. However, the 90 per cent mandatory packaging requirement for foodgrains stipulates that "in the first instance, the indents for the whole requirement would be placed for jute bags and in case jute mills are not able to provide jute bags as per requisition, then a dilution upto 10 per cent would be permissible by the Department of Food & Public Distribution".