Sugar Producers Challenge Costly Jute Packaging Mandate

New Delhi, Apr 16 (KNN) A legal battle is unfolding in India as sugar producers challenge the federal government’s push to enforce a 1987 law mandating that 20 per cent of sugar be packaged in jute bags.

The government, led by Prime Minister Narendra Modi, argues the rule supports the jute industry and rural livelihoods. But sugar mills claim the law is outdated and costly.

According to court filings, sugar producers say jute bags increase the risk of contamination and add about USD 76 million in annual costs compared to recyclable plastic alternatives.

They also claim major buyers like Pepsi, Coke, Nestle, and ITC reject sugar delivered in jute bags due to food safety concerns.

The government, however, maintains that jute bags are more durable and pest-resistant than plastic, and insists the rule is “welfare legislation” supporting 4 million farming families dependent on the jute sector.

Modi has long championed traditional industries and said in 2023 that such measures help “revitalise” rural economies.

The case, brought to the Karnataka High Court last August, is now entering its final arguments, with a verdict expected in the coming weeks.

In a December warning, the government cautioned sugar mills that violations of jute packaging rules would invite “strict action.”

This dispute is part of a broader trend, as major industries from electronics to agriculture push back against Modi’s regulatory policies. For now, the fate of India’s sugar packaging—and its impact on both business and rural livelihoods—rests with the court.

India remains the world’s largest consumer of sugar, with annual consumption estimated at 28 million tons.

(KNN Bureau)