The Cabinet Committee on Economic Affairs (CCEA) on 28 January 2015 approved mandatory packaging of food-grains and sugar in Jute material for the Jute Year 2014-15 with certain exemptions.
This decision will preserve and promote the jute sector. The minimum percentage of food-grains and sugar reserved for packaging in Jute for the Jute Year 2014-15:
• Food-grains: 90 percent of the production
• Sugar: 20 percent of the production
In case of food-grains, the indents for the whole requirement will be placed for the jute bags. However, if jute mills will not be able to provide the jute bags as per the demand, then a dilution of 10 percent will be permitted by the Department of Food in consultation with the Union Ministry of Textiles.
Following exemptions will be allowed under Jute Packaging Materials Act, 1987:
• Sugar that is packed for export but could not be exported may be exempted from the operation of the Order on the basis of an assessment by the Department of Food and Public Distribution.
• Following will be out of the purview of the reservation including sugar fortified with Vitamins, packaging for export of the commodities, small consumer packs of below 10 kg for food-grains and below 25 kg for sugar and bulk packaging of more than 100 kg.
• In case of any shortage or disruption in supply of jute packaging material, the Ministry of Textiles may relax these provisions up to a maximum of 30 percent of the production of food-grains.
When: 28 January 2015