Economy News

MANDATORY PACKAGING IN JUTE MATERIALS

Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: Agriculture Sector, Agricultural Finance Policy and Marketing, Industrial Policy

News

Cabinet Committee on Economic Affairs, chaired by PM Modi has accorded its approval for mandatory packaging of foodgrains and sugar in jute material for 2019-20.

Mandatoy Package

  • Government has retained the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987 as per last year.
  • The decision of the Cabinet mandates that 100% of the food grains and 20% of the sugar shall be mandatorily packed in diversified jute bags.

Benefits

  • 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% of the indents of jute bags for packing foodgrains would be placed through reverse auction on the GeM portal.
  • This will gradually usher in a regime of price discovery.
  • The approval will benefit farmers and workers located 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.

Other Initiatives for Jute Sector

Jute ICARE

  • 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.
  • The support was given in order to improve the productivity and quality of raw jute through a carefully designed intervention, called the Jute ICARE.
  • These interventions have resulted in enhancing the quality and productivity of raw jute and increasing income of jute farmers by Rs. 10,000 per hectare.

Jute Design Cell

With a view to support diversification of jute sector, the National Jute Board has collaborated with National Institute of Design and a Jute Design Cell was opened at Gandhinagar.

Anti-Dumping Duty

With a view to boost demand in the jute sector, Government of India has imposed Definitive Anti-Dumping Duty on import of jute goods from Bangladesh and Nepal with effect from 5th January, 2017.

Jute SMART

  • An e-govt initiative called Jute SMART was launched in December, 2016, providing an integrated platform for procurement of B-Twill sacking by Government agencies.
  • It was launched for promoting transparency in jute sector.

[Source: PIB]

 

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