Highlights

Union Cabinet of India finally approved the 20 per cent of sugar and 100 per cent of food grains should be mandatorily packed in jute bags on 29 Oct 2020. Union Cabinet Chaired by 14th current Prime Minister Narendra Modi

After approval this will help in diversifying jute industries. The mandatory jute packing norms have been introduced under Jute Packaging Material Act 1987. However, when in shortage of jute bags, Textiles Ministry can ease the provisions to 30 per cent of food grains.

Backdrop

  • More than 37,000 workers are dependent in jute sector for their livelihood in the country.
  • Government of India has been making several efforts to develop the jute sector. These includes diversification of jute sector, increasing quality and productivity of jute and diversification of jute sector.
  • Jute Packaging Materials (Compulsory use in Packing Commodities) Act 1987
  • Under the Jute Packaging Materials act, it is mandatory to use jute as packaging material in supply and distribution of certain commodities. This is being done under the interest of production of raw jute and help persons involved in jute production.

Importance

Domestic Jute Industry is heavily dependent on Central Govt for its survival. Around 7500 crore Rupees of jute bags are bought for packing food grains every year. It is predominantly bought by Government of India to support the livelihood of farmers dependent on jute sector.

GoI provide Support to Jute Industry

The Jute Corporation of India Limited and National Seeds Corporation signed MoU to distribute 10 thousand quintals of certified seeds. The upgraded technology and distribution of certified seeds will increase the quality and productivity of jute crops. Recently National Jute Board and Gandhinagar’s National Institute of Design collaborated to support diversification of jute sector.

  • Since January 2017, Central Government imposed anti-dumping duties over import of jute goods from Nepal and Bangladesh.
  • In 2016, SMART (Sustainable Mobilization of Agricultural Resource Technologies) Initiative was launched to provide an integrated platform to procure B-Twill sacking
  • Jute Corporation of India transfers 100 per cent funds to jute farmers for procuring jute under MSP.

Norms for Mandatory Packaging in Jute Material