“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 Ministry of Textiles said in a statement.
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 people. It will support 40 lakh farm families.
According to the ministry, the decision will also help the jute sector in Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana.
“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," the ministry said.
The government purchases jute sacking bags worth approximately ₹9,000 crore every year for packaging of foodgrains. This ensures guaranteed market for the produce of jute farmers and workers, it added.
The average production of jute sacking bags is about 30 lakhs bales (9 lakh MT) and the 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 fulfils all sustainability parameters.