Cabinet approves extension of norms for mandatory packaging in jute materials

New Delhi, Nov.11 (HS): The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi today approved the mansatory packaging of foodgrains and sugar in jute material for the Jute Year 2019-20. The Cabinet mandates that 100 percent of food grains and 20 percent of sugar will be mandatorily packed in diversified Jute bags.

In the cabinet meeting it was said that it would benefit farmers and workers located in the Eastern and North Eastern regions of the country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura as nearly 3.7 lakh workers and several lakh farm families are dependent for their livelihood on the jute sectors.  

The jute industry is predominantly dependent on Government sector which purchases jute bags of value of more than Rs. 7,500 crore every year for packing foodgrains. The government has been making concerted efforts for the development of jute sector; increasing the quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute products.

The Cabinet also said packaging of sugar in diversified jute bags would give an impetus to the diversification of the jute industry. Further, the decision also mandates that initially 10 percent of the indents of jute bags for packing foodgrains would be placed through reverse auction on the GeM portal. 

With a view to promoting transparency in jute sector, Jute SMART, an e-govt initiative was launched in December, 2016, providing an integrated platform for procurement of B-Twill sacking by Government agencies. Further, the JCI is transferring 100 percent funds to jute farmers online for jute procurement under MSP and commercial operations. 

In this connection, to support jute farmers, a grant of subsidy of Rs. 100 crore for two years starting from 2018-19 has been approved to enable JCI to conduct MSP operations and ensure price stabilization in the jute sector. In addition, the National Jute Board has collaborated with National Institute of Design and a Jute Design Cell has been opened at Gandhinagar. 

Further, promotion of Jute Geo Textiles and Agro-Textiles has been taken up with the State Governments particularly those in the North Eastern region and also with departments such as Ministry of Road Transport and Ministry of Water Resources. 

With a view to boost demand in the jute sector, Government has imposed Definitive Anti-Dumping Duty on import of jute goods from Bangladesh and Nepal with effect from January 5th, 2017.