As part of efforts to support the jute sector, the government is likely to make use of jute bags mandatory in packaging of food grains and sugar of specified quantities for the 2016-17.

The Textiles Ministry has sought the Cabinet approval for its proposal to make it mandatory to package 90 per cent of foodgrains and 20 per cent of sugar in jute bags for the jute year 2016-17 (July-September), sources said.

The Ministry has sought these reservations under the Jute packaging Materials Act.

The move, if approved, would help raw jute growers and the packaging industry.

About 100 units in the country are engaged in the production of jute items such as Ludlow Jute, Cheviot and Gloster Jute.

Sources said it has been proposed that Jute Commissioner should formulate a mechanism to ensure timely payment to traders, jute balers and farmers.

Further, the allocation mechanism under the Production Control Order may be revised to incentivise diversification of the jute industry, they added.

It has also been proposed to exempt various categories from purview of the reservation order. These include exports, sugar fortified with vitamins and smaller consumer packs.

It provides for contingencies under which the Textiles Ministry in consultation with other user ministries may relax the provisions to deal with shortages and disruptions in supply of jute packaging material.

Source: Business Standard