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CABINET APPROVES EXTENSION OF NORMS FOR MANDATORY PACKAGING IN JUTE MATERIALS

CABINET APPROVES EXTENSION OF NORMS FOR MANDATORY PACKAGING IN JUTE MATERIALS

Context

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved that 100% of the foodgrains and 20% of the sugar shall be mandatorily packed in diversified jute bags.

Benefits of the decision

  • To pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry.
  • It 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, which will gradually usher in a regime of price discovery. 
  • The Government has expanded the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987.
  • 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.
  • Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (hereinafter “the JPM Act”), the Government is required to consider and provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interest of production of raw jute and jute packaging material and of persons engaged in the production thereof.
  • The jute industry is predominantly dependent on Government sector which purchases jute bags of value of more than Rs. 7,500 crore every year for packing foodgrains.
  • This is done in order to sustain the core demand for the jute sector and to support the livelihood of the workers and farmers dependent on the sector.

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