New Delhi, Nov 22 (KNN) The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi has given its approval to expand the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987.

The CCEA approved that 100% of the food grains and 20% of the sugar shall be mandatorily packed in diversified jute bags. The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry.

Initially 10% of the indents of jute bags for packing food grains would be placed through reverse auction on the Gem portal. This will gradually usher in a regime of price discovery.

The decision will give a fillip to the development of jute sector; increasing the quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product.

This is important considering the fact that nearly 3.7 lakh workers and several lakh farm families are dependent for their livelihood on the jute sectors; the government has been making concerted efforts.

The jute industry is predominantly dependent on Government sector which purchases jute bags of value of more than Rs. 6,500 crore every year for packing foodgrains.

This is done in order to sustain the core demand for the jute sector and to support the livelihood of the workers and farmers dependent on the sector.

The decision 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.