Jute packing rule might be relaxed this week, after industry protest

However, Jute mills could take a loss of Rs 2,000 crore in 2017-18, if the order is relaxed

A proposal by the Department of Food & Public Distribution (DFPD) at the Centre to further relax the mandatory packaging norms for jute bags is set to erode the market for the industry.

The department has pushed for dilution of foodgrain meant to be packed in jute sacks from 90 per cent currently to 75 per cent for the 2017-18 season. In the case of sugar, the proposal is to completely lift the compulsory packaging order from 20 per cent at present.

DFPD's concern stems from capacity constraints in the jute industry. These issues are to be discussed at a meeting coming