The jute industry’s apprehension of a dilution of the Jute Packaging Materials (JPM) Act, 1987 which makes it mandatory for foodgrains and sugar to be packed in jute bags, may turn out to be true if the Centre accepts the recommendations that have been made to it in this regard by the Standing Advisory Committee (SAC) of the Union Ministry of Textiles.

The Cabinet Committee on Economic Affairs (CCEA) is slated to meet within the next few days and take a decision on the issue of compulsory use of jute bags for packaging of foodgrains and sugar for the July 2008-June 2009 season. Last year, following a meeting of the CCEA that was held under the Chairmanship of the Prime Minister, Dr Manmohan Singh, it was decided that jute bags must be used on 100 per cent basis for packaging of foodgrains and sugar.

Following a meeting that was held last month, and after considering various suggestions and recommendations made by stakeholders, the SAC has recommended a few exemptions to be prescribed under the JPM Act.

SAC has recommended that reservation for packaging of foodgrains and sugar may be made for up to 75 per cent and 70 per cent, respectively. Additionally, it has suggested that, in case of a shortage and disruption in the supply of jute packaging material, the Union Ministry of Textiles may, in consultations with the user ministries concerned, relax the provisions of the Act up to a maximum of 20 per cent for foodgrains and sugar. It has recommended that sugar fortified with vitamins may be exempt from the purview of the order.

It has also been proposed that the strategic stock of foodgrains created by Food Corporation of India be exempted from the order. Other exemptions recommended are for small consumer packs of 25 kg and below, bulk packaging of more than 100 kg and packaging for exports.

It may be recalled that, earlier in March this year, the Union Ministry of Consumer Affairs, Food and Public Distribution initiated a move that sought to exempt packaging of the foodgrains stock to be held in strategic reserve from the purview of the JPM Act.