IJMA hails Cabinet approval for new pricing methodology for jute bags

The Indian Jute Mills Association (IJMA) on Thursday hailed the Cabinet's approval for a new pricing methodology for jute bags used in the packaging of food grains.

"The new pricing methodology is designed to provide better pricing for jute mills, encouraging modernization and diversification within the industry. The government has reaffirmed its commitment to purchasing jute bags for the compulsory packaging of 100 per cent of food grains and 20 per cent of sugar, guaranteeing a stable market for jute producers," IJMA said in a statement.

With an annual government purchase of jute bags worth Rs 12,000 crore, the new pricing methodology ensures a guaranteed market for the produce of jute farmers and workers, providing much-needed economic relief and stability to the industry. The decision is expected to benefit approximately 4 lakh workers employed in jute mills and associated trades, improving their livelihoods and working conditions.

The compulsory packaging norms also continue to support the livelihoods of around 40 lakh farmer families involved in jute production. The revised pricing will further enhance their economic security and well-being, IJMA said. IJMA sources said a new pricing methodology was a long-standing demand from the mill owners.