Centre Mandates New 100% Jute Packaging for Foodgrains

In a major move to support India’s jute sector, the Ministry of Textiles issued an order on April 22, 2025, mandating the compulsory use of jute packaging for foodgrains and sugar under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

This order comes into immediate effect and is valid up to June 30, 2025

📦 Key Packaging Mandates:

CommodityJute Packaging Requirement
Foodgrains (rice, wheat, paddy)100% of total production
Sugar20% of total production

🚨 Note on Implementation:

  • 10% of foodgrain packaging orders must be placed through reverse auctions on the GeM portal initially.
  • Sugar must be packed in diversified jute bags purchased directly from mills or open market.
  • The use of jute bags must follow a priority order: rice > wheat > sugar.

🎯 Objectives:

  • Safeguard the livelihoods of jute farmers, balers, and mill workers.
  • Promote sustainable and indigenous packaging over synthetic alternatives.
  • Ensure full utilization of annual jute bag production in India.

🔄 Contingency & Relaxation:

  • In case of short supply of new jute bags, the Department of Food and Public Distribution may procure used jute bags via competitive bidding on the GeM portal.
  • A committee may recommend dilution of the packaging requirement by up to 30%, if needed.
  • If indent bunching occurs (delayed demand from procurement agencies), mills will be given extra time to deliver bags.

⚖️ Compliance & Exemptions:

  • Excluded from this mandate are:
    • Vitamin-fortified sugar
    • Exports and related bulk packaging
    • Small packs (≤10 kg for foodgrains, ≤25 kg for sugar)
    • Bulk packaging >100 kg

  • Jute mills must comply with labour laws, ensure prompt payment to jute farmers and workers, and provide certification of the same.

This decision underlines the government’s push for eco-friendly packaging and aims to protect India’s traditional jute industry amidst growing competition from synthetic alternatives.

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