Indian Sugar Mills Warned of Action for Non-compliance with Jute Packaging Norms

The Ministry of Food has strictly instructed all Indian sugar mills to comply with the mandatory rule of using 20% jute packaging for their total sugar production, as per the Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987. The recent reminder, issued on March 27, emphasizes adherence to rules notified by the Textile Ministry after observing non-compliance among certain mills.

Compliance on Sugar Mills and Consequences

Sugar mills were reminded of the Sugar Directorate’s previous communication from December 2024, instructing mills to include mandatory jute packaging data in their monthly returns (P-2 sheet). The food ministry clarified that failure to adhere to these regulations during the ongoing sugar season (October 2024 to September 2025) will result in legal action.

Mills Raise Quality Concerns

Several sugar mills have raised objections, with some even obtaining court stays against mandatory jute packaging. They argue jute bags compromise sugar quality due to inadequate moisture protection, affecting customer preferences—particularly bulk buyers who favor plastic packaging.

Decline in Jute Production

This enforcement coincides with a decline in India's raw jute and mesta cultivation. The acreage decreased to 5.7 lakh hectares in 2024, down from 6.37 lakh hectares in 2023. Causing a subsequent drop in production to 86.24 lakh bales compared to 96.92 lakh bales in the previous year. Lower production poses potential challenges to consistent jute availability, creating additional pressure on sugar mills.

India's Raw Jute Production Scenario

(*1 bale = 180 kg)

The government's renewed push aims to balance environmental sustainability through increased jute utilization while navigating challenges around material supply and quality assurance faced by the sugar industry.