In a major boost to the jute sector, the government, on Wednesday, approved mandatory packaging of sugar and foodgrains in jute material to the minimum extent of up to 90 per cent of production.
A proposal for financial support to Jute Corporation of India (JCI) to offset losses incurred by it on account of Minimum Support Price (MSP) operations also approved by the Cabinet Committee on Economic Affairs, an official release said.
The government approved mandatory packaging of foodgrains in jute material with certain exemptions. For sugar, the minimum packaging requirement has been fixed at 20 per cent of production for jute year 2014-15.
The financial assistance to JCI will be provided in the form of subsidy.
