India extends time for mandatory use of jute bags
The Indian cabinet yesterday extended the time for mandatory packaging of foodgrains and sugar with jute material for the jute year 2019-20 in order to help the struggling sector in eastern and northeastern states.
The approval was accorded at a cabinet meeting presided over by Indian Prime Minister Narendra Modi.
The decision of the cabinet mandates that 100 percent of the foodgrains and 20 percent of the sugar shall be mandatorily packed in diversified jute bags, according to an official statement.
It said the decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry.
The decision also mandates that initially 10 percent of the indents of jute bags for packing foodgrains would be placed through reverse auction, according to the statement.
The cabinet approval will benefit farmers and workers located in eastern and northeastern regions of the country, particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.
Nearly 3.7 lakh workers and several lakh farm families are dependent on the jute sector for their livelihood.
The Indian jute industry is largely dependent on the government which purchases jute bags worth over Rs 7,500 crore every year to pack foodgrains.
With a view to boosting demand in the jute sector, India has imposed definitive anti-dumping duty on import of jute goods from Bangladesh and Nepal with effect from January 5, 2017.
Other government support to the jute industry includes intervention to improve the productivity and quality of raw jute called Jute ICARE.
The government has been supporting approximately two lakh jute farmers by disseminating improved agronomic practices such as line sowing using seed drills, weed management by using wheel-hoeing and nail-weeders, distribution of quality certified seeds and also providing microbial assisted retting.
These interventions have resulted in the enhancement of the quality and productivity of raw jute and increased income of jute farmers by Rs 10,000 per hectare.
