Cabinet Decision: This decision is related to 40 lakh jute farmers of the country, cabinet approved – cabinet approved reservation norms for jute packaging materials jute year 2022-23

Decision has been taken for jute year 2022-23

According to government sources, the reservation rules for the mandatory use of jute in packaging for the jute year 2022-23 (July 1, 2022 to June 30, 2023) were approved. Under these rules, it is mandatory to pack 100 percent of food grains and 20 percent of sugar in jute bags. This is likely to give a lot of boost to the jute industry.

Lakhs of farmers and laborers will be benefited

It is said that this decision will benefit about 40 lakh jute farmers. Companies like Gloster, Cheviot, Ludlow Jute can also benefit from this decision. All these three companies are in jute related business and they are also listed in the stock market. With this decision, the shares of these companies can also rise. It is noteworthy that jute worth about Rs 8,000 crore is bought from farmers every year. It is processed in jute mills. With the approval of these rules, 3.7 lakh workers working in jute mills and other allied units will also be benefited.

great for the environment

Jute is a natural, biodegradable, renewable and reusable fiber. It also meets all sustainability standards. Therefore, if the government promotes its use, the environment will also benefit. Jute industry may not matter for North India but it is important for Eastern part of the country like West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya. It is also of great importance for Andhra Pradesh and Telangana. The reservation rule under the Jute Packaging Material (JPM) Act provides direct employment to 3.7 lakh workers in the jute sector and several lakh jute farmers. The JPM Act, 1987 protects the interests of jute farmers, workers and persons engaged in the production of jute goods. Jute bags account for 75% of the total production of the jute industry, of which 85% is supplied to the Food Corporation of India (FCI) and State Procurement Agencies (SPAs) and the rest is exported/directly sold. Is.

The government procures jute gunny bags worth about Rs 9,000 crore every year for packing food grains, thereby ensuring a guaranteed market for jute farmers and workers for their produce.