CCEA approves mandatory use of jute in packaging

New Delhi, Aug 2 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for continuation of the policy for mandatory use of jute for purposes of packaging for the year 2007-08, which includes all foodgrains and sugar to be packed in jute bags.

Briefing newspersons on the outcome of the CCEA meeting, Finance Minister P Chidambaram, however, said the order will be subject to certain modifications.

The Ministry of Textiles will be empowered to authorised the user agencies to relax these provisions upto a maximum of further 20 per cent for sugar and food grains in case of any disrupton in supplies.

The Minister said the new policy was a continuation of the one laid down during the last Jute Year(Juy-June).

Mr Chidambaram said small consumer packs of 25 kgs and below, and exports packaging in respect of foodgrains and sugar should be exempted from the operation of compulsory packaging.

Sugar fortified with vitamins will be exempted from the purview of the order, Mr Chindambaram said.

Packaging in 100 kg or more will be exempted from the purview of the compuasory packaging.

Mr Chidambaram said implementation of Jute Packaging Material Act, 1987, will provide sustenance to millions of people engaged in Jute Sector.

UNI