The Indian Cabinet Committee on Economic Affairs has approved the compulsory 90% of packaging for the production of foodgrain and sugar in bags made of jute packaging material, during the current jute year.
The Jute Packaging Material (JPM) Act exempts sugar fortified with vitamins, packaging for export of commodities, small consumer packs of 25kg and below, as well as bulk packaging of more than 100kg.
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The textiles ministry could relax the provisions further up to a maximum of 20% in the case of any shortage or distribution of jute packaging material.
With this move, the government expects to support the 3.7 lakh workers in jute mills and ancillary units, and around 40 lakh farm families.
Under the JPM Act of 1987, the Indian government is required to consider and provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities.
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By GlobalData
