The Cabinet Committee for Economic Affairs (CCEA) has retained the status quo of the Jute Packaging Act, 1987 which entails 100 percent reservation in packaging of food grains and sugar.
The period of the act expired on June 30, 2009 and was up for review. It had been suggested to dilute the act to the extent of 25 percent in packaging of food grains and sugar, which was opposed by the jute sector.
The Chairman of Indian Jute Mills Association (IJMA) Sanjay Kajaria, welcomed the decision and said that, it would go a long way in increasing competitive strength and further development of jute sector in the country.