CCEA clears mandatory use of jute in packaging for the Jute Year 2015-16

Decision to provide relief to 3.7 lakh workers employed in Jute Mills and ancillary units

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has given its approval for mandatory use of jute in packaging for the Jute Year 2015-16 (1 July 2015 to 30 June, 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. Besides, it will help to protect the environment because jute is natural, biodegradable and reusable fibre.

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 thereof and for matters connected therewith.

In pursuance of the JPM Act, the Government has decided that the following:-

1) The following commodities may be reserved for jute packaging for the Jute Year 2015-16 (1 July 2015 to 30 June, 2016), to the extent mentioned below:

Foodgrains: 90% of the production

Sugar: 20% of the production

2) Sugar packed for export but which could not be exported, sugar fortified with vitamins, packing for export of commodities, consumer packs of 10 kgs and below for foodgrains and 25 kgs and below for sugar and bulk packing of more than 100 kgs may be exempted from the reservation order under JPM Act. Further, Ministry of Textiles may relax the provisions for reservation upto a maximum of 30% of the foodgrains, over and above the norms prescribed.

3) Consumer packs of quantity of above 10 kgs and upto 25 kgs for packing of foodgrains should be done in jute bags for distribution of foodgrains under Foodgrains Security Act subject to such bags being cost competitive as compared to HDPE/PP bags factoring in the subsidy/reimbursement provided by Government of India for packing of foodgrains.

4) With a view to reducing the cost of jute bags all future orders of the Government shall be for lighter weight bags of 580 and 600 gms subject to conformity with relevant BIS standards.

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