The Cabinet Committee on Economic Affairs chaired on October 29, 2020 approved that 100 percent of the foodgrains and 20 percent of the sugar shall be mandatorily packed in diversified jute bags.
- The decision also mandates that initially 10 percent of the indents of jute bags for packing foodgrains would be placed through reverse auction on the Gem portal. A reverse auction is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services.
- 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.
- Objective: The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry.
- Relaxation: In case of any shortage or disruption in supply of jute packaging material or in other contingency/exigency, the Ministry of Textiles may, in consultation with the user Ministries concerned, relax these provisions further, up to a maximum of 30% of the production of foodgrains over and above the provisions.
- Under the Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987, the Government is required to consider and provide for the compulsory use of jute packaging material.
- With a view to support diversification of jute sector, the National Jute Board has collaborated with National Institute of Design and a Jute Design Cell has been opened at Gandhinagar.
(Source: PIB)
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