labels: economy - general, agriculture
Cabinet extends compulsory use of jute for packing grain, sugarnews
02 August 2007

The CCEA also extended the ''jute packaging order'', which requires compulsory use of jute packing for food grains and sugar, for another year till 30 June, 2008. The order aims at providing sustenance to the people engaged in the jute sector.

For the jute year 2007-08 (July-June), food grains and sugar would have to be cent per cent packed in jute bags, with some exceptions, Finance Minister P Chidambaram told reporters after a meeting of the cabinet committee on economic affairs.

In case of disruption in jute supplies, the textile ministry will be empowered to authorise user agencies to relax these provisions up to a maximum of 20 per cent for sugar and food grains, he said.

Small consumer packs of 25kg and below, and exports packing in respect of food grains and `sugar fortified with vitamins` would be exempted from the operation of compulsory packing, the finance minister said.

Packaging in 100kg or more will be also exempted from the purview of the compulsory packaging, Chidambaram added.

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Cabinet extends compulsory use of jute for packing grain, sugar