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Govt approves proposal making jute packaging mandatory for all food grains

The decision will give a fillip to the development of the jute sector

Press Trust of India  |  New Delhi 

Jute
Representative image

The government Thursday approved a proposal making mandatory for all

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi here.

"The approved that 100 per cent of the and 20 per cent of the sugar shall be mandatorily packed in diversified jute bags," an official statement said.

The move, which expanded the scope of Material (JPM) Act, 1987, retained an earlier decision that 20 per cent of the sugar shall be mandatorily packed in diversified

Earlier, it was compulsory to pack 90 per cent of the and 20 per cent of the sugar in

"Initially, 10 per cent of the indents of for packing food grains would be placed through reverse auction on the GeM (Government e-Marketplace) portal. This will gradually usher in a regime of price discovery," it said.

The decision will give a fillip to the development of the jute sector, increasing the quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product, it added.

The move is significant as nearly 370,000 workers and several lakh farm families are dependent for their livelihood on the jute sector.

The is predominantly dependent on the government sector, which purchases jute bags worth more than Rs 65 billion every year for packing food grains.

This is done in order to sustain the core demand for the jute sector and to support the livelihood of the workers and farmers dependent on the sector.

The move will benefit farmers and workers in West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.

First Published: Thu, November 22 2018. 16:30 IST
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