Millers have asked the government for a total exemption of sugar from compulsory jute packaging during Jute Year 2026–27, claiming serious public health risks, quality incompatibility, and a mounting economic burden on the industry and over 50 million sugarcane farmers.Sugar mill owners have also demanded suspension of the mandatory jute packaging for sugar until an independent expert study is completed.Every year, the government decides, based on demand-supply, the percentage of packing materials for sugar bags (jute or PPV) under Section 4 of the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) have jointly urged the government to grant sugar a 100 per cent exemption from compulsory packaging in jute bags, the industry bodies said in a joint statement.Carcinogenic contentThey contend that jute is treated with jute batching oil (JBO), a petroleum-based compound whose PAH content is scientifically and judicially established as carcinogenic. “Residues can migrate into sugar, posing a health hazard to consumers, including children and pregnant women,” the statement said.Citing these risks, in October 2025 the Standing Advisory Committee (SAC) had ordered an independent expert study with representatives drawn from AIIMS, FSSAI, BIS and the Jute Commissioner’s office.“Pending the outcome of the said study, the SAC also reduced the mandatory jute packaging requirement for sugar from 20 per cent to 15 per cent, reflecting its considered view that the existing packaging requirements warranted interim reconsideration,” said ISMA in a statement.Sugar is highly hygroscopic whereas jute retains moisture, causing caking, lump formation and reduced shelf life, the statement said. Besides, jute bags cost 2.5–3 times more than other alternatives, adding an estimated ₹800 crore a year in costs, it said.CACP flags systemThe Commissioner for Agricultural Costs and Prices (CACP) is said to have flagged the compulsory reservation system as it leaves insufficient material for diversified, higher-value products such as shopping bags and home décor.“The scientific and judicial evidence on JBO’s carcinogenic content is now overwhelming. Sugar reaches every household, including children, and it cannot continue to be packed in bags treated with a petroleum-based carcinogen while an SAC-directed independent study remains pending,” said Deepak Ballani, Director General, ISMA. Prakash Naiknavare, Managing Director, NFCSF also said that exempting sugar from mandatory jute packaging will protect product quality and consumer health, while freeing up raw jute for the diversified, value-added products that can truly secure the jute sector’s long-term growth.Published on August 10, 2026