The Indian Cabinet Committee on Economic Affairs has approved the mandatory packaging of 90% of the production of foodgrain and sugar in bags made of jute packaging material during the current jute year 2011-12.
The decision exempts sugar fortified with vitamins, packaging for export of commodities, small consumer packs of 25kg and below, and bulk packaging of more than 100kg, from the provision.
The textiles ministry, in consultation with the concerned user ministries will relax the provisions further up to a maximum of 20%, in the case of any shortage or distribution of jute packaging material or other contingency.
The government expects the move will support the 3.7 lakh workers in jute mills and ancillary units and around 40 lakh farm families.
Under the Jute Packaging Materials Act, 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.
