Reservation norms for Jute Packaging Materials for Jute Year 2021-22

• 11 Nov 2021

On 10th November 2021, the Union Government has approved Reservation norms for mandatory use of jute in packaging for the Jute Year 2021-22 (1st July, 2021 to 30th June, 2022).

Provisions

• The mandatory packaging norms approved for Jute Year 2021-22 provide for 100% reservation of the foodgrains and 20% of sugar to be compulsorily packed in jute bags.

Jute Industry in India

• The Jute industry occupies an important place in the national economy of India in general and Eastern Region in particular i.e. West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya, Andhra Pradesh and Telangana.
• It is one of the major industries in the eastern region, particularly in West Bengal.

Production

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

Consumption

• 75% of the total production of the Jute Industry is Jute Sacking Bags of which 90% is supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs) and remaining is exported/sold directly.
• Government purchases Jute sacking bags worth approximately Rs. 8,000 Cr. every year, for packing of foodgrains, hence ensures guaranteed market for the produce of Jute Farmers and Workers.

Benefits of Reservation Norms

• The reservation norms under the Jute Packaging Material Act (JPM Act) provide for direct employment to 3.7 lakh workers and 40 lakh farmers in the Jute Sector.
• Reservation for packaging in jute packaging material consumed around 66.57% of the raw jute produced in the country (in 2020-21).
• It will help protect the environment because jute is natural, biodegradable, renewable & reusable fibre and hence fulfills all sustainability parameters.

About JPM Act, 1987

• JPM Act, 1987 protects the interest of Jute farmers, workers and persons engaged in jute goods’ production.