Jute Current Affairs

CCEA approves extension of norms for mandatory packaging in Jute Materials

Cabinet Committee on Economic Affairs (CCEA) has approved to expand the scope of mandatory packaging norms under Jute Packaging Material (JPM) Act, 1987. It has approved that 100% of the food grains and 20% of sugar shall be mandatorily packed in diversified jute bags. Initially 10% of indents of jute bags for packing foodgrains will be placed through reverse auction on GEM portal. This will gradually help to usher in a regime of price discovery.

Impact of this decision

It will give a fillip to development of jute sector and impetus to the diversification of the jute industry. It will increase quality and productivity of raw jute and also boost and sustaining demand for jute product. It will benefit farmers and workers located in Eastern and North Eastern regions of country particularly in the states of West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya and Tripura.

Jute Sector

Jute is one of the important natural fibers after cotton in terms of cultivation and usage. Its cultivation is dependent on climate, season, and soil. Almost 85% of world’s jute cultivation is concentrated in the Ganges Delta. India is largest producer or cultivator of jute in the world (around 60%) followed by Bangladesh and China. Top jute producing states are West Bengal, Bihar, Assam and Odisha.

This sector in India is predominantly dependent on Government which purchases jute products more than Rs. 6,500 crore every year. Government has been making concerted efforts for the development of jute sector considering that nearly 3.7 lakh workers and approximately 40 lakh farmers are dependent for their livelihood on jute sectors.

Government is also making concerted efforts for development of jute sector. It is increasing quality and productivity of raw jute, diversification of jute sector and also boosting and sustaining demand for jute product. The intensive Government support is to sustain core demand for jute sector and to support livelihood of workers and farmers dependent on sector.

Month: Categories: India Current Affairs 2018


CCEA approves 9.4% hike in raw jute MSP for 2017-18 season

The Cabinet Committee on Economic Affairs (CCEA) has approved increase in the Minimum Support Price (MSP) for raw Jute for 2017-18 season in order to protect the economic interests of the farmers.

The MSP was increased to Rs. 3500/- per quintal for 2017-18 season, an increase of Rs. 300/- (9.4%) over the previous year.

Key Facts
  • Jute is long, soft, shiny vegetable fiber mainly used as raw material for Packaging Industry. It is also called as the golden fiber for its colour and high cash value.
  • The increase in MSP will benefit Jute industry which supports the livelihood of around 40 lakh farm families and 3.7 lakh workers directly employed in the organised mills and in tertiary sector and allied activities.
  • These farm families are mainly concentrated in three eastern states viz. West Bengal, Bihar and Assam which account for over 95% of the total area under jute production in the country.
  • National Seeds Corporation Limited (NSCL) is promoting new varieties of jute viz., JRO-204, JBO-2003, JRS-517, JRC-532 and JRO-2407 under National Food Security Mission (NFSM)-Commercial Crops.
  • In this regard, NSCL has entered into agreement for promotion of new varieties of jute seeds in the jute growing states.

Month: Categories: India Current Affairs 2018