Abstract

The jute industry has historically held a significant position within India’s industrial and rural economic framework, contributing both to the employment and the development of ancillary sectors. However, in recent decades, the sector has faced substantial challenges due to technological stagnation, competition from synthetic alternatives, and shifting global market dynamics. In response, the Indian government enacted the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 (JPMA), aimed at safeguarding domestic jute production by mandating the use of jute bags for the packaging of key commodities such as food grains and sugar. This paper critically examines the legal and economic implications of the JPMA, 1987. While the Act was designed to protect jute mill employment, promote rural livelihoods, and support environmental objectives by curbing plastic usage, its implementation has triggered significant controversy. Critics argue that the Act interferes with free market principles and imposes disproportionate costs on industries required to use costlier jute packaging. Moreover, the jute sector has struggled to meet demand efficiently due to outdated machinery and limited technological innovation, thereby undermining the policy’s intended economic benefits. The paper explores the regulatory tensions between environmental sustainability, economic protectionism, and market liberalism. It further analyses how inefficiencies in enforcement, instances of corruption, and the lack of sustainable practices within jute mills have diluted the Act’s overall effectiveness. Ultimately, the research suggests that while the JPMA represents a well-intentioned legislative intervention, it requires substantial reform and modernization of the jute industry to align with both environmental and economic goals.

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