New Delhi: The Cabinet Committee on Economic Affairs, chaired by the Hon’ble Prime Minister, Shri Narendra Modi, approved reservation norms for the mandatory use of jute in packaging for the Jute Year 2023-24 (1st July, 2023 to 30th June, 2024) on 8th December, 2023.
The approved norms mandate 100% reservation for foodgrains and 20% for sugar to be packed in jute bags. This decision aims to protect the interests of domestic raw jute production and jute packaging material, fostering self-reliance in line with Aatmnirbhar Bharat. Approximately 65% of the raw jute produced in the country in 2022-23 was consumed in jute packaging material.
By enforcing the provisions of the Jute Packaging Materials (JPM) Act, the government seeks to provide relief to 4 lakh workers in jute mills and ancillary units, benefiting around 40 lakh farm families. Additionally, this move aligns with environmental sustainability, as jute is a natural, biodegradable, renewable, and reusable fiber.
The Jute industry plays a pivotal role in the national economy, particularly in West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh, and Telangana. The reservations under the JPM Act aim to provide direct employment to 4 lakh workers and 40 lakh farmers in the Jute Sector, ensuring the protection of their interests.
The JPM Act, 1987, safeguards the interests of jute farmers, workers, and those engaged in jute goods’ production. About 75% of the total production of the Jute Industry consists of Jute Sacking Bags, with 85% supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs), and the remaining exported or sold directly.
The Government of India annually purchases jute sacking bags worth approximately Rs. 12,000 crore for packing foodgrains, ensuring a guaranteed market for Jute Farmers and Workers. The government remains committed to the complete off-take of the jute bag production to protect the interests of those engaged in the Jute Industry.