Cabinet Committee on Economic Affairs has approved that 100% of the foodgrains and 20% of the sugar shall be mandatorily packed in diversified jute bags.
Key highlights of the decision
- The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry.
- Further, the decision also mandates that initially 10% of the indents of jute bags for packing foodgrains would be placed through reverse auction on the Gem portal.
- This will gradually usher in a regime of price discovery.
- The Government has expanded the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987.
Jute Packaging Materials (Compulsory use in Packing Commodities) Act
- Under the JPM Act the Government is required to consider and provide for the compulsory use of jute packaging material in the supply and distribution of certain commodities in the interest of production of raw jute and jute packaging material and of persons engaged in the production thereof.
- Therefore, the reservation norms in present proposal would further the interest of domestic production of raw jute and jute packaging material in India
Various initiatives which provided support to the Jute Sector:
In order to improve the productivity and quality of raw jute through a carefully designed intervention, called the Jute ICARE, the Government has been supporting close to approx. two lakh jute farmers by disseminating improved agronomic practices such as line sowing using seed drills, weed management by using wheel-hoeing and nail-weeders, distribution of quality certified seeds and also providing microbial assisted retting.
MoU between Jute Corporation of India(JCI) & National Seeds Corporation(NSC):
- Recently, both JCI & NSC have entered into MoU for distribution of 10,000 quintals of certified seeds on commercial basis also.
- The intervention of Technology up-gradation and distribution of certified seeds would increase the productivity and quality of jute crops and also increase the income of the farmers.
Anti-Dumping Duty :
With a view to boost demand in the jute sector, Government of India has imposed Definitive Anti-Dumping Duty on import of jute goods from Bangladesh and Nepal with effect from 5th January, 2017.
With a view to promoting transparency in the 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.