The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved that all of food-grains and 20 per cent of sugar shall be mandatorily packed in diversified jute bags.
The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry. It also mandates that initially 10 per cent of the indents of jute bags for packing food-grains would be placed through reverse auction on the gem portal.
In case of any shortage or disruption in supply of jute packaging material or in other exigency, the Textiles Ministry may, in consultation with the user ministries concerned, relax these provisions further, up to a maximum of 30 per cent of the production of food-grains over and above the provisions.
The approval will benefit farmers and workers located in the eastern and northeastern regions of the country particularly in West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.
