The Indian Government’s Cabinet Committee on Economic Affairs (CCEA) has approved an extension of the mandatory packaging norms for Jute Year 2022-23.
The reservation norms require all foodgrains such as rice and wheat, as well as 20% of sugar, to be packed in jute packaging.
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These norms are specified as part of the Jute Packaging Material Act 1987 and were previously made mandatory for Jute Year 2021-22.
The extension will create direct jobs for 370,000 workers at jute mills and ancillary units, as well as a further four million families in the jute sector.
In a statement, the Indian Ministry of Textiles said: “The jute industry occupies an important place in the national economy of India, particularly in West Bengal, where nearly 75 jute mills operate and provide a livelihood to hundreds of thousands of workmen.
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“It will support four million farm families in the jute sector. The decision will also help the jute sector in Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana.”
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By GlobalDataJute Year 2022-23 began on 1 July last year and will end on 30 June this year.
Each year, the Government of India buys around Rs90bn ($1.08bn) worth of jute sacking bags for foodgrain packaging, ensuring a market for jute farmers and workers.
Jute sacking bags account for 75% of the jute industry’s total production. Of this, 85% is supplied to the Food Corporation of India (FCI) and state procurement agencies, with the rest being exported or sold directly.
The Ministry of Textiles added: “The reservation norms would further the interest of domestic production of raw jute and jute packaging material in India, thereby, making India self-reliant in consonance with Aatmanirbhar Bharat.
“It will also help protect the environment because jute is a natural, biodegradable, renewable and reusable fibre and hence fulfils all sustainability parameters.”
