Cabinet approves reservation norms for Jute Packaging Materials for Jute Year 2021-22

As per the norms, 100% of foodgrains and 20% of sugar are to be mandatorily packed in jute bags. The reservation norms under the Jute Packaging Material Act (JPM Act) provide for direct employment to 3.7 lakh workers and 40 lakh farmers in the jute sector.

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved reservation norms for mandatory use of jute in packaging for the Jute Year 2021 -22 (1st July, 2021 to 30th June, 2022). The mandatory packaging norms approved for Jute Year 2021-22 provide for 100% reservation of the foodgrains and 20% of sugar to be compulsorily packed in jute bags in a bid to boost jute industry, according to press release.

The reservation norms in present proposal 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, said a press release. Reservation for packaging in jute packaging material consumed around 66.57% of the raw jute produced in the country (in 2020-21). Usage of jute promotes environment friendliness and sustainability as the material is natural, biodegradable, renewable & reusable fibre and hence fulfills all sustainability parameters.

The reservation norms under the Jute Packaging Material Act (JPM Act) provide for direct employment to 3.7 lakh workers and 40 lakh farmers in the jute Sector. JPM Act, 1987 protects the interest of Jute farmers, workers and persons engaged in jute goods’ production. 75% of the total production of the jute industry is jute sacking. 90% of bags are supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs) while remaining 10% is exported or sold.

The press release stated that government purchases Jute sacking bags worth approximately Rs. 8,000 Cr. every year, for packing of foodgrains. Average production of jute sacking bags is about 30 lakhs bales (9 lakh MT).

The jute industry occupies an important place in the national economy of India in general and Eastern Region in particular i.e. West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana. It is one of the major industries in the eastern region, particularly in West Bengal.