New Delhi: Sugar industry organisations have urged the Centre to completely exempt sugar from mandatory jute packaging during Jute Year 2026–27, citing concerns related to consumer safety, product quality and the rising cost of packaging.
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) have jointly called for a 100% exemption for sugar from compulsory jute bag packaging. The organisations have also sought a temporary suspension of the requirement until an independent expert assessment of the issue is completed.
Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, the government determines the proportion of commodities, including sugar, that must be packed in jute bags. The annual requirement is decided after considering factors such as the availability and demand for jute and alternative packaging materials.
Industry raises concerns over jute treatment
The sugar industry has raised concerns over the use of jute batching oil (JBO) during the manufacture and treatment of jute bags. ISMA and NFCSF have pointed to the presence of polycyclic aromatic hydrocarbons (PAHs) in petroleum-based JBO and argued that residues could potentially migrate into food products.
The industry bodies said an independent study was ordered by the Standing Advisory Committee (SAC) in October 2025 to examine the issue. The proposed expert panel includes representatives from institutions and agencies such as AIIMS, the Food Safety and Standards Authority of India (FSSAI), the Bureau of Indian Standards (BIS) and the Jute Commissioner’s office.
Pending the study, the SAC reportedly reduced the mandatory jute packaging requirement for sugar from 20% to 15%, according to ISMA.
Millers cite sugar quality concerns
Industry representatives have also argued that jute may not be ideally suited for sugar because sugar is highly hygroscopic and can absorb moisture. According to the industry, moisture retention associated with jute packaging may contribute to caking, lump formation and a shorter shelf life under certain storage conditions.
The cost of jute packaging is another major concern raised by sugar mills. ISMA said jute bags can cost around 2.5 to 3 times more than alternative packaging materials, potentially increasing the industry's annual packaging expenditure by about ₹800 crore.
Industry wants policy review
ISMA and NFCSF have also argued that compulsory reservation of jute for packaging limits its availability for higher-value applications. They said greater availability of raw jute could support the development of products such as shopping bags, home décor items and other diversified jute-based goods.
ISMA Director General Deepak Ballani said the industry believes sugar should not continue under the mandatory jute packaging framework while the expert study remains pending, particularly because sugar is a food product consumed across households.
NFCSF Managing Director Prakash Naiknavare said exempting sugar could help address the industry's concerns over product quality and consumer safety while allowing more raw jute to be directed towards diversified and value-added products.
The sugar industry has therefore asked the government to reconsider the compulsory jute packaging requirement for sugar and provide a 100% exemption for Jute Year 2026–27.
