Cabinet approves extension of jute packaging norms for foodgrains, sugar

The Cabinet on Wednesday approved the extension of norms for mandatory packaging of foodgrains and sugar in jute material for the Jute Year 2019-20. The decision taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, mandates that 100 percent of the foodgrains and 20 percent of sugar will be mandatorily packed in diversified jute bags.

"The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry. Further, the decision also mandates that initially 10 percent of the indents of jute bags for packing foodgrains would be placed through a reverse auction on the GeM portal. This will gradually usher in a regime of price discovery. "The approval will benefit farmers and workers located in the Eastern and North-Eastern regions of the country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya, and Tripura," an official statement said.