Only 7 per cent of sugar produced during the season has been packed in jute bags

The Government is continuously directing sugar mills to comply with mandatory packaging of 20 per cent of the total production of sugar, but only 7 per cent of sugar produced during the season has been packed in jute bags.

In a communication to sugar mills, Department of Food and Public Distribution (DFPD) said, “During the current sugar season 2023-24, it has been noticed that the directions issued by this Directorate for mandatory packaging of 20% of the total production of sugar in the jute packaging material have not been complied in letter and spirit and only 7% of sugar produced during the season has been packed in jute bags.”

“All the sugar mills are hereby directed to assess their requirements for jute bags based on the sugar produced during Sugar Season 2023-24 and take necessary steps for procurement of jute bags before the commencement of next sugar season 2024-25. It is also directed that sugar mills should package the sugar produced during the month of October- December-2024 in Jute bags first, upto 20% of sugar produced during Sugar Season 2023-24 and then use other packaging material,” DFPD further added.

DFPD warned that non-compliance of the directions issued by Directorate for Jute packaging of 20% of sugar produced during current sugar season, will be viewed seriously and no monthly release quota from January-2025 onwards to the sugar mills to the non-complaint sugar mills.

As per directive, all the sugar manufacturers are required to comply with the directions regarding mandatory jute packaging of 20% of the total production of sugar, as notified by Ministry of Textile under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987.

Dilip Patil, Managing Director of Samarth SSK Ltd while speaking with ChiniMandi said, “As a sugar mill MD, I share concerns about the cost gap between jute and PP bags, impacting our operations and market competitiveness. The higher cost of jute bags significantly affects profitability, especially if jute-packed sugar fetches lower prices. We urge the government to re-evaluate the regulations, considering the incentives for jute bag production and subsidies or financial aid for sugar mills.”

Click here to read the letter

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