CCEA approves extension of norms for mandatory packaging in Jute Materials

November 23, 2018

Cabinet Committee on Economic Affairs (CCEA) has approved to expand the scope of mandatory packaging norms under Jute Packaging Material (JPM) Act, 1987. It has approved that 100% of the food grains and 20% of sugar shall be mandatorily packed in diversified jute bags. Initially 10% of indents of jute bags for packing foodgrains will be placed through reverse auction on GEM portal. This will gradually help to usher in a regime of price discovery.

Impact of this decision

It will give a fillip to development of jute sector and impetus to the diversification of the jute industry. It will increase quality and productivity of raw jute and also boost and sustaining demand for jute product. It will benefit farmers and workers located in Eastern and North Eastern regions of country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.

Jute Sector

Jute is one of the important natural fibers after cotton in terms of cultivation and usage. Its cultivation is dependent on climate, season, and soil. Almost 85% of world’s jute cultivation is concentrated in the Ganges Delta. India is largest producer or cultivator of jute in the world (around 60%) followed by Bangladesh and China. Top jute producing states are West Bengal, Bihar, Assam and Odisha.
This sector in India is predominantly dependent on Government which purchases jute products more than Rs. 6,500 crore every year. Government has been making concerted efforts for the development of jute sector considering that nearly 3.7 lakh workers and approximately 40 lakh farmers are dependent for their livelihood on jute sectors.
Government is also making concerted efforts for development of jute sector. It is increasing quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product. The intensive Government support is to sustain core demand for jute sector and to support livelihood of workers and farmers dependent on sector.

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