CCEA Approves Reservation Norms for Mandatory Use of Jute in Foodgrains and Sugar Packaging for Jute Year 2022-23

· Reservation Norms for Jute Packaging Materials for Jute Year 2022-23 under JPM Act, 1987

· Govt. decision a big boost for West Bengal’s jute workers, farmers, mills

· Decision to help 40 lakh farm families, 3.7 lakh workers in jute mills & ancillary units

· Govt. purchase of Rs 9,000 crore/year of jute for packing ensures guaranteed market for produce of jute farmers, workers

· Govt. decision to support domestic jute production in line with Aatmanirbhar Bharat initiative

Government of India approved Reservation norms for mandatory use of jute in packaging of rice, wheat and sugar for the Jute Year 2022-23. The Mandatory norms provide for full reservation for packaging of foodgrains and 20% reservation for packaging of sugar in jute bags, which will be a big boost for West Bengal.

The Jute industry occupies an important place in the national economy of India, particularly in West Bengal where nearly 75 jute mills operate and provide livelihood to lakhs of workmen. It will support 40 lakh farm families in the jute sector. The decision will also help the jute sector in Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana.

The reservations norms under JPM Act provide for direct employment to 3.70 lakh workers and protect the interest of approximately 40 lakh farm families in the jute sector. JPM Act, 1987 protects the interest of Jute farmers, workers and persons engaged in jute goods’ production. 75% of the total production of the Jute Industry is Jute Sacking Bags of which 85% is supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs) and remaining is exported/sold directly.

Govt. purchases Jute sacking bags worth approximately Rs. 9,000 Cr. every year for packing of foodgrains. This ensures guaranteed market for the produce of Jute Farmers and Workers.

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

The reservation norms 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. It will also help protect the environment because jute is a natural, bio- degradable, renewable & reusable fibre and hence fulfills all sustainability parameters.