# Sugar industry demands full exemption from jute packaging 2026-08-10T17:56:40+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) have jointly asked the government to fully exempt sugar from mandatory jute packaging. They claim that jute batching oil (JBO), a petroleum compound used on jute, contains carcinogenic PAHs that can contaminate sugar, risking consumers including children and pregnant women. They also say jute bags cost 2.5, 3 times more than alternatives, adding an estimated Rs 800 crore a year to the industry's expenses. The Standing Advisory Committee had already ordered an independent expert study in October 2025 and reduced the mandatory jute packaging for sugar from 20% to 15% pending its outcome. The Commission for Agricultural Costs and Prices has also flagged the compulsory reservation system for leaving insufficient jute for higher-value products like shopping bags and décor. ## Coverage - thehindubusinessline.com Tags: carcinogenic risk, ISMA, JBO, jute packaging, NFCSF, sugar industry Canonical: https://indianopinion.org/sugar-industry-demands-full-exemption-from-jute-packaging/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sugar-industry-demands-full-exemption-from-jute-packaging/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.