In a major boost to the jute industry, the Narendra Modi Government has made it mandatory to use only jute bags for packaging foodgrains in the country while in the case of sugar the limit has been fixed at 20% of the total product for 2021-22 (1st July, 2021 to 30th June, 2022).

According to an official statement issued on Wednesday, the Government purchases jute sacking bags worth approximately Rs. 8,000 crore every year for packing foodgrains which ensures a guaranteed market for the produce of jute farmers and workers.

The jute industry occupies an important place in the national economy in general and Eastern Region in particular i.e. West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana. It is one of the major industries in the eastern region, particularly in West Bengal.

The new jute reservation norms in present proposal would further the interest of domestic production of raw jute and jute packaging material in India, thereby, making India self-reliant in consonance with Aatmanirbhar Bharat.

The reservation norms under the Jute Packaging Material Act (JPM Act) provide for direct employment to 3.7 lakh workers and 40 lakh farmers in the Jute Sector. JPM Act, 1987 protects the interest of Jute farmers, workers and persons engaged in jute goods’ production.

As much as 75% of the total production of the Jute Industry is Jute Sacking Bags of which 90% is supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs) and remaining is exported or sold directly

Average Production of Jute Sacking Bags is about 30 lakhs bales (9 lakh MT) and Government is committed to ensure complete take off of the sacking production of the jute bags in order to protect the interest of Jute farmers, workers and persons engaged in the Jute Industry.

The move will also help protect the environment because jute is natural, biodegradable, renewable and reusable fibre.