Mandatory Jute Packaging

How the Jute Packaging Materials Act of 1987 requires grains and sugar to be packed in jute bags, why this props up demand, and the debate over costs.

India requires jute packaging for some goods.

The law

The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

Rules

The government sets reservation norms each year, currently requiring 100% of foodgrains and a share of sugar to be packed in jute.

Biggest buyer

Government grain procurement agencies are the largest buyers of jute bags.

Supporters

Protects farmers and mill workers.
Reduces plastic.

Critics

Jute bags can cost more and shed fibre into grain.
Sugar makers prefer plastic bags.

Economics

Mandated demand keeps the industry alive but may reduce efficiency.

The procurement order

The Food Corporation of India orders lakhs of jute bales to pack wheat and rice.

Thinking jute demand is purely market-driven

Government mandates prop it up.

Key takeaways

The 1987 Act mandates jute packaging.
Foodgrains must use jute bags.
Government agencies are the biggest buyers.
Critics cite costs.