The Cabinet has approved extension of
norms for mandatory packaging of foodgrains and sugar in jute material for the
Jute Year 2019-20.
The decision taken by the Cabinet Committee on Economic
Affairs, chaired by Prime Minister Narendra Modi, mandates that 100 per cent of
the foodgrains and 20 per cent of sugar will 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. Further, the
decision also mandates that initially 10 per cent of the indents of jute bags
for packing foodgrains would be placed through reverse auction on the GeM
portal. This will gradually usher in a regime of price discovery.
"The approval 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," an official statement said.