The government Thursday approved a proposal making jute packaging mandatory for all food grains. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi here. "The CCEA approved that 100 per cent of the food grains and 20 per cent of the sugar shall be mandatorily packed in diversified jute bags," an official statement said. The move, which expanded the scope of Jute Packaging Material (JPM) Act, 1987, retained an earlier decision that 20 per cent of the sugar shall be mandatorily packed in diversified jute bags. 

Earlier, it was compulsory to pack 90 per cent of the food grains and 20 per cent of the sugar in jute bags. Earlier, it was compulsory to pack 90 per cent of the food grains and 20 per cent of the sugar in jute bags. 

"Initially, 10 per cent of the indents of jute bags for packing food grains would be placed through reverse auction on the GeM (Government e-Marketplace) portal. This will gradually usher in a regime of price discovery," it said. 
The decision will give a fillip to the development of the jute sector, increasing the quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product, it added.