New Delhi, Nov 11 (IANS): The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved reservation norms for mandatory use of jute in packaging for the Jute Year 2021-22.

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

The reservation norms in present proposal would further protect the interest of domestic production of raw jute and jute packaging material, thereby, making India self-reliant in consonance with Aatmnirbhar Bharat.

Reservation for packaging in jute packaging material consumed around 66.57 per cent of the raw jute produced in the country (in 2020-21).

The decision would help 0.37 million workers employed in jute mills and ancillary units as well as support the livelihood of around 4 million farm families. Because of jute being degradable, renewable and reusable fibre, it will help protect environment and fulfill all sustainability parameters.

The Jute Packaging Materials Act, 1987 protects interest of jute farmers, workers and persons engaged in jute goods' production. A total of 75 per cent of the total production of the jute industry is jute sacking bags of which 90 per cent is supplied to the Food Corporation of India (FCl) and state procurement agencies (SPAs) and remaining is exported or sold directly.

The Centre purchases jute sacking bags worth approximately Rs 8,000 crore every year for packing of foodgrains, hence ensuring a guaranteed market.

The jute industry occupies an important place in the national economy, and it is one of the major industries in the eastern region, particularly in West Bengal.