The Hindu Business Line : CCEA approves 100% jute packaging for grains, sugar

Kolkata, Aug. 21 The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for compulsory packaging of food grains and sugar in jute bags on 100 per cent basis for the jute year 2008-09 (July-June).

In the 2007-08 jute year too, following a meeting of the CCEA that was held under the Chairmanship of the Prime Minister, Dr Manmohan Singh, it was decided that jute bags must be used on 100 per cent basis for packaging of food grains and sugar.

The decision has been welcomed by the Rs 6,500-crore turnover jute industry, which had earlier apprehended a dilution of the Jute Packaging Materials Act, 1987, which makes it mandatory for food grains and sugar to be packed on 100 per cent basis in jute bags.

The move will directly benefit four million jute growers and two-and-a-half lakh workers engaged in the jute mills industry. The decision will ensure offtake of nine lakh tonnes of jute goods, out of the 17 lakh tonnes produced by the industry.

However, some exemptions have been prescribed in the order under the JPM Act. In the case of shortage or disruption in the supply of jute packaging material, the Union Ministry of Textiles will, in consultation with the user ministries concerned, further relax these provisions up to a maximum of 20 per cent for food grains and sugar, respectively.

Export packaging exempted

Besides, “sugar fortified with vitamins” will be exempt from the purview of the order. Packaging for export of commodities will be exempted as would be small consumer packs of 25 kg and below and bulk packaging of more than 100 kg.

The CCEA decision has been welcomed by the Indian Jute Mills’ Association. Its Chairman, Mr Sanjay Kajaria, thanked the Centre – and Members of Parliament from West Bengal in particular – for the CCEA approval for packaging of food grains and sugar on 100 per cent basis in jute bags for the 2008-09 jute year.