Executive Summary:
This order, issued by the Ministry of Textiles, mandates the compulsory use of jute packaging material for certain commodities. It specifies the minimum percentage of foodgrains and sugar that must be packed in jute, effective from the date of publication until June 30, 2016. The order is issued under the Jute Packaging Materials Compulsory Use in Packing Commodities Act, 1987.
Key Points / Main Content:
Mandatory Jute Packaging:
* Foodgrains: 90% of total production must be packed in jute packaging material manufactured in India from raw jute produced in India.
* Sugar: 20% of total production must be packed in jute packaging material manufactured in India from raw jute produced in India.
Exceptions:
* Sugar fortified with vitamins is exempt.
* Packaging for export of commodities is exempt.
* Consumer packs of 10 kg and below for food grains and 25 kg and below for sugar are exempt.
* Bulk packing of more than 100 kg is exempt.
* Sugar packed for export but which could not be exported is exempt.
Additional Provisions:
* Dilution of up to 10% is permissible if jute mills cannot supply the required jute bags for foodgrains.
* The Central Government may release up to 30% of the provisions for packing food grains in jute material.
* Consumer packs of 10 kg and above up to 25 kg for food grains under the National Food Security Act, 2013, must be packed in jute bags if cost-competitive with alternative materials, factoring in government subsidies.
Impact Analysis:
Jute Mills:
* Impact: Increased demand for jute bags due to mandatory packaging requirements.
* Action Required: Ensure sufficient production capacity to meet the demand, subject to permissible dilution.
Food Grain and Sugar Producers/Suppliers:
* Impact: Obligation to pack specified percentages of commodities in jute packaging, with potential cost implications and exceptions for certain packaging types.
* Action Required: Comply with the mandatory jute packaging percentages, monitor costs, and utilise permissible exemptions where applicable.
Department of Food and Public Distribution:
* Impact: Oversight of jute bag procurement and potential allowance for dilution if supply issues arise.
* Action Required: Monitor jute bag supply, authorise dilution up to 10% if necessary, and ensure compliance with packaging requirements.
Central Government:
* Impact: Monitoring and potential release of provisions for packing food grains in jute material up to a maximum of thirty percent.
* Action Required: Monitor the jute packing situation, decide on the release of provisions based on requirements.
Key Entities Referenced
Jute Packaging Materials Compulsory Use in Packing Commodities Act, 1987: An act that empowers the Central Government to specify commodities or classes of commodities that must be packed in jute packaging material.
Standing Advisory Committee: A committee constituted to recommend the norms of packaging in jute material.
Ministry of Textiles: The ministry that issued the order regarding the use of jute packaging material.
Foodgrains: A commodity that is required to be packed in jute packaging material as per the order, with a specified percentage.
Sugar: A commodity that is required to be packed in jute packaging material as per the order, with a specified percentage.
Department of Food and Public Distribution: The department that may allow a dilution in the use of jute bags if jute mills are unable to meet the demand.
National Food Security Act, 2013: An act related to the distribution of foodgrains, where specific packaging requirements apply.
New Delhi, Delhi: Location where the order was issued.
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[फा. सं. 9/11/2015-पटसन]
ए. मधकु ुमार रे_ी, संयुV त सिचव
MINISTRY OF TEXTILES
ORDER
New Delhi, the 14th January, 2016
S.O. 126(E).—Whereas the Central Government under sub-section(1) of section 3 of the Jute
Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (10 of 1987) is empowered to
specify the commodities or class of commodities or such percentage thereof which shall be packed for the
purpose of its supply or distribution in such jute packaging material as may be specified in the order,
considering the recommendations of the Standing Advisory Committee;¹Hkkx IIµ[k.M 3 (ii)º Hkkjr dk jkti=k % vlk/kj.k 3
And, whereas, the Central Government, in exercise of powers conferred under sub-section (1) of
section 4 of the said Act, has constituted the Standing Advisory Committee vide number S.O. 360(E), dated
the 13th February, 2013, to recommend the norms of packaging in jute material;
And, whereas the Central Government, after considering the recommendations made by the
Standing Advisory Committee, is satisfied that it is necessary in the interest of production of raw jute and
jute packaging material, and of persons engaged in the production thereof to specify the commodity or
class of commodities and percentage thereof required to be packed in jute packaging material;
Now, therefore, in exercise of the powers conferred by sub-section (1) of section 3 read with sub-
section (1) of section 16 of the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act,
1987 and in supersession of the Government of India in the Ministry of Textiles, order number S.O. 527(E),
dated the 13th February, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (ii) dated the 11th February, 2015, except as respects things done or omitted to be done before such
supersession, the Central Government hereby directs that the commodities specified in column (2) of the
Schedule below, shall be packed in jute packaging material for supply or distribution, in such minimum
percentage as specified in corresponding entries in column (3) of the said Schedule, with effect from the
date of publication of this order in the Official Gazette, upto 30th June, 2016.
Schedule
Sl.No. Commodities. Percentage of total production of commodity or class of commodities
required to be packed in jute packaging material manufactured in India
from raw jute produced in India.
(1) (2) (3)
(1) Foodgrains *Ninety per cent. (90%)
(2) Sugar Twenty per cent. (20%)
* Note: In the first instance, the indents for the whole requirement would be placed for jute bags
and in case jute mills would not be able to provide jute bags as per requisition, then a dilution upto
ten per cent. would be permissible by the Department of Food and Public Distribution.
Provided that this shall not apply to the following, namely:—
(a) sugar fortified with vitamins;
(b) packaging for export of commodities;
(c) consumer packs of ten kilograms and below for food grains and twenty five kilograms and
below for sugar; and
(d) bulk packing of more than one hundred kilograms.
(e) sugar packed for export but which could not be exported.
2. The Central Government may release these provisions for packing in jute material up to a maximum
of thirty per cent. for food grains.
3. Consumer packs of ten kilograms and above up to twenty-five kilograms for packing of foodgrains
meant for distribution under the National Food Security Act, 2013 (20 of 2013) shall be packed in
jute bags, subject to the condition that such jute bags shall be cost competitive as compared to high
density poly ethylene or poly propylene bags factoring in the subsidy or re-imbursement provided by
the Government of India for packing of foodgrains.
[F. No. 9/11/2015-Jute]
A. MADHUKUMAR REDDY, Jt. Secy.
rinted by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.