'Continue to pack sugar, foodgrains in jute bag'

NEW DELHI: To provide sustenance to the people engaged in the jute sector, the government on Thursday extended compulsory packing of foodgrains and sugar in bags made of jute for another year till June 30, 2008.

For the Jute Year 2007-08 (July-June), foodgrains and sugar would have to be cent per cent packed in jute bags, with some exceptions, Finance Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs.

The CCEA's decision is part of implementation of Jute Packaging Material Act, 1987 and National Jute Policy, 2005.

In case of disruption in jute supplies, the Textile Ministry will be empowered to authorise user agencies to relax these provisions up to a maximum of 20 per cent for sugar and foodgrains, he said.

Small consumer packs of 25 kg and below, and exports packing in respect of foodgrains and sugar should be exempted from the operation of compulsory packing, the Finance Minister said.

Packaging in 100 kg or more will be exempted from the purview of the compulsory packaging, Chidambaram said.

Also, 'sugar fortified with vitamins' will be exempted from this decision, he said.