Seeking Exemption
Sugar industry seeks exemption from jute packaging, cites risk of cancer
This story was originally published at 22:01 IST on 10 August 2026
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MUMBAI – Sugar industry associations have urged the government to exempt them from compulsory packaging in jute bags from 2026-27, citing quality issues, health concerns, and higher costs. The industry has been mandated to pack 20% of its output in jute bags to support the jute economy.
"Sugar is highly hygroscopic; jute retains moisture, causing caking, lump formation and reduced shelf life," The Indian Sugar & Bio-Energy Manufacturers Association and the National Federation of Cooperative Sugar Factories said in a joint press release.
According to the two sugar bodies, jute used in packaging is treated with jute batching oil, a petroleum-based compound that can cause cancer. "Residues can migrate into sugar, posing a health hazard to consumers, including children and pregnant women," the release said.
Jute is also a substantial economic burden on the sugar industry, costing 2.5-3.0 times more than other alternatives and adding INR 8 billion a year to production costs, the release said. The sugar industry pointed out that diversified, high-value products such as shopping bags and home decor would ensure the jute industry's growth and export potential.
"The scientific and judicial evidence on JBO's (jute batching oil) carcinogenic content is now overwhelming," ISMA Director General Deepak Ballani said. "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." End
Reported by Upasika Singhal
Edited by Avishek Dutta
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