Cabinet approves reservation norms for mandatory use of jute in packaging

The Union Cabinet on Wednesday approved the reservation norms for mandatory use of jute in packaging for Jute Year 2021-22 (July 1, 2021 to June 30, 2022).

The packaging norms provide for 100 per cent reservation for packing foodgrains in jute bags and 20 per cent for sugar.

"The reservation norms in present proposal would further protect the interest of domestic production of raw jute and jute packaging material in lndia, thereby, making India self-reliant in consonance with Aatmnirbhar Bharat," a release from the government said.

The Government of India purchases jute bags worth approximately Rs 8,000 crore every year for packing of foodgrains, ensuring guaranteed market for the produce of jute farmers and workers. The reservation for packaging in jute packaging material helped in consumption of around 66.57 per cent of raw jute produced in the country in 2020-21, it said.

The Centre said its latest decisions will provide relief to 0.37 million workers employed in jute mills and ancillary units as well as support the livelihood of around 4 million farm families.

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About 75 per cent of the total production of jute industry is jute sacking bags, of which 90 per cent is supplied to the Food Corporation of India (FCl) and state procurement agencies (SPAs), while the remaining is exported or sold directly.

"Average production of jute sacking bags is about 30 lakhs bales (9 lakh MT) and government is committed to ensure complete off-take of the sacking production of the jute bags in order to protect the interest of jute farmers, workers and persons engaged in the jute industry," it added.

Meanwhile, the Cabinet also approved committed price support of Rs 17,408.85 crore to the Cotton Commission of India for cotton seasons from 2014-15 to 2020-21. Price support operations help stabilise cotton price.

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