SME Times News Bureau | 16 Nov, 2011
Bringing relief to over 3.7 lakh workers who earn their living by working in jute mills and ancillary units, the government Wednesday approved mandatory use of jute in packaging of 90 percent of production of food grains and sugar.

"In pursuance of the Jute Packaging Material Act, the Cabinet Committee on Economic Affairs has approved the packaging of 90 percent of the production of foodgrains and 90 percent of the production of sugar in the jute packaging material for the Jute Year 2011-12 ((July, 2011 to June, 2012)," said the Cabinet Committee on Economic Affairs in a statement.

However, the committee exempted sugar packed for export but which could not be exported from the order.

Also beyond the reservation are sugar fortified with vitamins, packaging for export of the commodities, small consumer packs of 25 kg and below and bulk packaging of more than 100 kg.

In case of any shortage or disruption in supply of jute packaging material or in other contingency, the Ministry of Textiles will, in consultation with the concerned ministries, relax these provisions further up to a maximum of 20 percent of the production of foodgrains and sugar.

The decision is expected to support the livelihood of around 40 lakh farm families besides protecting environment as jute is natural, biodegradable and reusable fibre.

Under the Jute Packaging Materials Act 1987, 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 and for connected matters.