In good news for jute companies, the government has extended the mandatory Jute packaging deadline by December 30, 2022. As per a notification from the Textile Ministry, the mandatory jute packaging deadline which was to end on September 30 has been extended by another three months to December 30, 2022.
As per the norms, use of 100% jute is mandatory in case of food grains and it is 20% for sugar.
In June last year, the Ministry of Textile has mandated jute bag through a notification, which has been now extended to December 2022.
Jute tocks in focus
The decision to extend mandatory jute packaging deadline is likely to stocks like Gloster, Cheviot and Ludlow Jute, all listed companies.
Earlier, the government had also done away with price cap on jute in May 2022. It was said that the removal of price capping of jute will go on a long way to help farmers, mills and Jute MSME (Ministry of Micro, Small & Medium Enterprises). Besides 40 lakh jute farmers, over seven lakh others are dependent on jute business.
National Technical Textiles Mission
Besides, last week, the Centre had cleared 23 strategic research projects of around Rs 60 crore in the areas of specialty fibres, sustainable textiles, geotextiles, mobiltech and sports textiles under its flagship programme National Technical Textiles Mission last week.
The projects were approved under the chairmanship of Textiles Minister Piyush Goyal on September 14, PTI said quoting an official statement on Friday.
“Among these 23 research projects, 12 projects of Speciality Fibres having application areas in agriculture, smart textiles, healthcare, strategic application and protective gears were cleared.”Four projects from sustainable textiles having application area in agriculture and healthcare sector were cleared. Also, five projects from geotextile, 1 from mobiltech and 1 from sportech were cleared,” the Textile Ministry stated.