Cabinet approves mandatory packaging in jute materials for Jute Year 2019-20

The Government has retained the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987 as per last year.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has accorded its approval for mandatory packaging of foodgrains and sugar in jute material for the Jute Year 2019-20.

The Government has retained the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987 as per last year. The decision of the Cabinet mandates that 100% of the food grains and 20% of the sugar shall be mandatorily packed in diversified jute bags.

Benefits:

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% 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.

(With Inputs from PIB)