New Delhi, Nov 22 (IANS): To give a boost to development of the jute sector, the government on Thursday made it mandatory to pack 100 per cent of food grains in diversified jute bags, up from 90 per cent earlier.

Also, 20 per cent of the sugar products would continue to be mandatorily packed in jute bags, the government said.

The decision to expand the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987, was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

"The CCEA approved that 100 per cent of the food grains and 20 per cent of the 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," an official statement said.

The government said the decision was important considering that nearly 3.7 lakh workers and several lakh farm families were dependent for their livelihood on the jute sector.

"The jute industry is predominantly dependent on government which purchases jute bags of value of more than Rs 6,500 crore every year for packing foodgrains. This is done in order to sustain the core demand for the jute sector and to support the livelihood of the workers and farmers dependent on the sector," it said in a statement.

"The decision will benefit farmers and workers in the eastern and north-eastern regions of the country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura."