The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, in an important decision has approved to have mandatory packaging of foodgrains and sugar in Jute material to the minimum extent of 90 percent and 20 percent respectively for the Jute Year 2014-15 with certain exemptions. This preserves the position as in the past and helps the jute sector. There had been many concerns that the reservation for jute packaging would be reduced.

However, in order to preserve and promote this vital sector which generates a lot of livelihoods for farmers and workers, the CCEA has decided that:

The following commodities may be reserved for jute packaging for the Jute Year 2014-15, to the extent mentioned below:

Commodity	Minimum percentage to be reserved for packaging in Jute
Food-grains	*90 percent of the production
Sugar	20 percent of the production

 *With the stipulation that in the first instance, the indents for the whole requirement would be placed for the jute bags and in case the jute mills would not be able to provide the jute bags as per the requisition, than a dilution upto 10 percent would be permissible by the Department of Food in consultation with the Ministry of Textiles.

Following exemptions may be allowed in the Order under JPM Act.:

(i) Sugar packed for export but which could not be exported may be exempted from the operation of the Order on the basis of an assessment by and request of the Department of Food and Public Distribution.

(ii) Following may be out of the purview of the reservation:

a) Sugar fortified with Vitamins.

b) Packaging for export of the commodities.

c) Small consumer packs of 10 kgs and below for foodgrains and 25 kgs and below for sugar.

d) Bulk Packaging of more than 100 kgs.  

(iii) In case of any shortage or disruption in supply of jute packaging material or in other contingency/exigency, the Ministry of Textiles may, in consultation with the user Ministries concerned, relax these provisions further, up to a maximum of 30 percent of the production of foodgrains over and above the extent mentioned in above table.

Mandatory jute packaging requires reserved use for foodgrain and sugar with limited exemptions and contingent relaxations. The policy mandates mandatory jute packaging for specified commodities in the Jute Year 2014-15, requiring initial indents for jute bags and permitting limited dilution if jute mills cannot meet requisitions, with targeted exemptions for export packaging, fortified sugar, small consumer packs, and bulk packaging; the Ministry of Textiles may further relax reservations in consultation with user Ministries in cases of supply disruption or exigency.