90% of food grains and 20% of sugar mandatory

Jute packaging industry up for benefits

516

The comparatively small jute packaging industry has been relieved to an extent as the Cabinet Committee on Economic Affairs (CCEA) has extended the mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987. The cabinet committee, chaired by Prime Minister Narendra Modi, has extended the deadline till 30 June 2018. The approval makes it mandatory to package 90% of the food grains and 20% of the sugar products sold to government bodies in jute bags. The decision also mandates, in the first instance, the entire requirement for packing of foodgrains to be placed in jute bags, thus making a provision for 100% packing of foodgrains in jute bags subject to the ability of the jute industry to meet the requirement.

This decision of the government will benefit around four lakh workers and around 35 lakh farmers who are dependent on the industry. It will also benefit the jute industry and help it regain its lost demand.

The CCEA observed that jute-based packaging is eco-friendly and bio-degradable, which makes it a more preferred option over plastic. In its report, the CCEA said, ‘The plastic materials are durable but create more cleanliness and hygiene issues. It is understood that the product concerned is food grains and sugar and to ensure safety the disposal of the plastic waste bags is critical. Jute being one of the bio-degradable material shall be continued.’

‘It is brought to our notice that jute packaging industry serves as one of the livelihoods of the people at large. Considering and upholding the interests of the said affected, the extension be granted till June 30, 2018,’ states the document.

Giving more options for considerations, the committee has also suggested the industry to bring forward other options for packaging. The report mentions, ‘The committee shall also review suggestions and test other bio-degradable options. Other options like plastic are also welcome. Suggestions which deemed fit under the parameters of the FSSAI can be filed and reviewed by CCEA.’

Future plans

Going ahead, the CCEA aims at increasing the quality and productivity of raw jute, modifying the jute sector and sustaining the demand for jute products. A major part of it thrives on the jute packaging for food grains and sugar. Hence, it is mandatory for selling them in government-regulated markets in jute packaging.

Empowering jute farmers, a track and trace initiative will soon be launched, which will help track the transfer of the produce to what it is converted into. This will help the government to analyze the ROI on the produce and to build its strategies around the obtained results.

The Indian jute industry is predominantly dependent on the government sector, which purchases jute products worth more than Rs 5,500 crore every year. In order to promote transparency in the operations within the sector, Jute SMART, an eGovernment initiative, was launched a couple of years back to provide an integrated platform for the procurement of jute.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

As 2023 begins and FY 23-24 unfolds, will you support us?

What lies in store for the packaging industry in India and South Asia this coming year? Inflation, disruption of supply chains or environmental regulation? Or the resumption of high rural demand, continued investment and industry consolidation? Whatever happens, Packaging South Asia will be there, providing clarity and independent technical and business information in India and South Asia and around the world. We are a compact Indian organization bringing a window of fair and rigorous technical and business information that the industry can access this year and beyond. Please support us with your advertising and subscriptions, to keep us going and growing.

Thank you.

LEAVE A REPLY

Please enter your comment!
Please enter your name here