Jute Packaging Order Amendment 2026: Extended to January 2027

The Ministry of Textiles has issued the Jute Packaging Order Amendment 2026, stating that the current compulsory jute packaging scheme will be extended to 31 January 2027 or until further orders, whichever is earlier.

The amendment was notified on 27 October 2026 through S.O. 5794(E). The amendment amends the date mentioned in the previous Order, S.O. 1830(E), dated 22 April 2025, made under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

The underlying Order requires specified percentages of food grains and sugar to be packed in jute packaging materials. The October amendment changes the stated date but does not introduce new packaging percentages. Food grain procurement agencies, sugar manufacturers, jute mills and packaging suppliers should review the applicable requirements and consider the revised period when planning packaging and procurement activities.

Notification at a Glance

The Ministry of Textiles has amended the existing Order rather than introducing a separate packaging framework.

The Ministry of Textiles Jute Packaging Notification does not introduce a new application process or separate compliance certificate. Its immediate legal change is limited to a change in date.

The Regulatory Framework

Compulsory jute packaging in India is governed by the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987.

Section 3(1) of the Act empowers the Central Government to specify commodities, or a percentage of those commodities, that must be packed in jute packaging material for supply or distribution. The government considers the Standing Advisory Committee's recommendations before issuing such requirements.

Under this framework, the Ministry of Textiles issued S.O. 1830(E) on 22 April 2025. The Order prescribed compulsory jute packaging requirements for food grains and sugar, along with provisions concerning procurement, availability of jute bags, relaxation and certain exclusions.

The principal Order also states that the specified jute packaging materials must be manufactured in India using raw jute produced in India.

The Jute Packaging Order 2026 amendment continues the date-related provision of this regulatory framework. Businesses must therefore read the October 2026 amendment together with the original Order and the relevant intervening amendments to understand their applicable obligations. 

What Has Changed in the Jute Packaging Order?

The Ministry of Textiles has revised the date mentioned in paragraph 4 of the preamble of the Order issued on 22 April 2025. The October notification substitutes the original reference to 30 June 2025 with 31 January 2027 or until further orders, whichever is earlier.

This is the only express amendment made by S.O. 5794(E).

Comparison of the earlier and revised provisions

The reference to 30 June 2025 is the wording of the principal Order. It should not be confused with the position immediately before October 2026, because the government had issued intervening extensions, including the July 2026 Order referring to 31 October 2026. 

What does the revised date mean?

The amended provision now refers to 31 January 2027. However, the Ministry can issue another order before that date.

Therefore, the new date should not be understood as an unconditional guarantee that the same requirements will remain unchanged until the end of January. The notification does not independently alter the categories of covered commodities, prescribe different packaging percentages or announce a new registration requirement.

Applicability of the Jute Packaging Order to Food grain and Sugar Industries

The compulsory jute packaging framework applies to specified commodities under the 2025 principal Order. It primarily concerns food grains and sugar intended for supply or distribution in India.

The requirements depend on the commodity type, the packaging arrangement and the exclusions provided in the Order.

Food grain industry

The principal Order identifies three food grains for the compulsory packaging requirements:

• Rice
• Paddy
• Wheat

These commodities are covered by the prescribed reservation requirement, subject to the exclusions and any authorised relaxation. Food grain procurement agencies, including relevant government procurement bodies, need to consider these requirements when arranging packaging materials.

Sugar industry

Sugar is also covered, although its prescribed packaging percentage differs from that of food grains. The 2025 Order allows diversified jute bags for the specified sugar packaging requirement. It refers to direct purchases by procuring agencies from mills or the open market.

The Order also excludes vitamin-fortified sugar, certain consumer packs and specified export-related packaging. 

Jute manufacturers and packaging suppliers

Jute mills and packaging suppliers have an important role in making the required bags available. Their responsibilities and commercial arrangements are not necessarily the same as those of businesses packing food grains or sugar.

For this reason, Jute Packaging Compliance in India should be assessed based on the commodity involved and the relevant business activity, rather than treating every packaging supplier, manufacturer and trader as having the same obligations.

Mandatory Jute Packaging Requirements for Foodgrains and Sugar

Under S.O. 1830(E), dated 22 April 2025, the Central Government prescribed minimum jute packaging percentages for food grains and sugar.

The Mandatory Jute Packaging Requirements are set out in the principal Order. The amendment dated 27 October 2026 does not replace these percentages.

Compulsory jute packaging percentages

The Order refers to packaging material manufactured in India using raw jute produced in India. 

Exclusions under the Jute Packaging Order

Paragraph 6 of the principal Order identifies packaging categories that may be kept outside the compulsory reservation requirement.

These include:

• Sugar fortified with vitamins.
• Packaging of commodities for export.
• Consumer packs of food grains weighing 10 kg or less.
• Consumer packs of sugar weighing 25 kg or less.
• Bulk packaging weighing more than 100 kg.
• Sugar packed for export but not exported, subject to assessment and recommendation by the Department of Food and Public Distribution.

These exclusions are important because the compulsory packaging percentages should not be applied without considering the conditions in the Order.

Relaxation in case of jute bag shortages

The principal Order also provides a mechanism for relaxing packaging requirements when there is a shortage or disruption in the supply of new jute packaging materials, or another qualifying contingency. Under paragraph 3, the Ministry of Textiles may allow relaxation of up to 30% of the prescribed percentage, following the consultation process stated in the Order.

This relaxation is not automatic. Businesses cannot independently reduce their compulsory jute packaging requirement simply because bags are unavailable or more expensive. The relevant government decision and applicable conditions must be considered before relying on any relaxation. 

Previous Extensions of the Jute Packaging Order

The Jute Packaging Order Extension 2027 results from various amendments to the main order made in April 2025. The Ministry of Textiles previously amended the period through various notifications.

Timeline of important orders

The earlier extensions are listed in the Indian Jute Mills Association's notification records, with supporting Gazette material available for the relevant orders. 

The latest notification again amends the date specified in the original 2025 Order rather than issuing a new set of commodity-wise packaging percentages. The timeline should be read as a history of the dates notified by the government, not as a substitute for examining the legal effect of each order.

Impact on Businesses

The amendment is relevant to businesses that manufacture, procure, supply or use jute packaging materials for the specified commodities.

Although the October notification does not introduce a new compliance process, the revised period matters for packaging-related planning.

Impact on food grain businesses

Food grain businesses and procurement agencies dealing with covered rice, paddy and wheat need to account for the compulsory packaging requirements when arranging jute bags. The revised date may be relevant when reviewing procurement schedules, packaging arrangements and future supply needs.

Businesses should also distinguish between the compulsory packaging percentage and any exceptions or government-authorised relaxations that apply to their operations.

Impact on sugar manufacturers

Sugar manufacturers covered by the Order must take account of the prescribed 20% jute packaging requirement, subject to the relevant exclusions and conditions. The revised period gives businesses another clear regulatory reference point for assessing their packaging arrangements.

However, the amendment does not establish a new exemption from compulsory packaging or provide a fresh procedure for obtaining one.

Impact on jute bag manufacturers and suppliers

For jute mills and suppliers, compulsory packaging requirements affect demand planning, production schedules and supply commitments.

The extended period may influence discussions with procurement agencies and commodity businesses about future requirements. Suppliers should not assume the amendment guarantees specific purchase volumes or government orders.

Impact on procurement and compliance teams

Businesses that purchase or use large quantities of packaging material should review their procurement arrangements against the applicable requirements. Checking the relevant commodity, pack size, sourcing conditions and any authorised exceptions can help prevent misunderstandings when placing packaging orders.

Compliance Requirements for Businesses Using Jute Packaging Materials

Companies under the Order should ensure compliance with the appropriate compulsory jute packaging regime.

The October 2026 amendment changes the date provided but does not introduce any further registration/filing process.

1. Verify the applicable packaging percentage

Businesses should establish whether the commodities they handle fall within the food grain or sugar requirements. The prescribed percentages are different, and the provisions must be considered alongside applicable exclusions.

2. Check the origin of jute packaging materials

The main order states that packaging materials made from jute grown in India must be used. Any organizations making such arrangements should take this into account.

3. Follow applicable procurement provisions

The 2025 Order contains provisions addressing procurement of jute bags, including: 

• Initial placement of 10% of food grain indents through reverse auction on the Government e-Marketplace (GeM).
• Arrangements for using jute bags when new bags are insufficient.
• Procurement planning by the Department of Food and Public Distribution and relevant agencies.

These are provisions of the earlier Order, not new requirements introduced in October 2026.

4. Consider exclusions and authorised relaxations

The firm needs to determine whether the stated exclusion applies to its packaging operations. If a relaxation is needed due to supply-related problems, the process and body set out in the main Order must be followed.

5. Review applicable obligations for jute mills

The original Order also includes provisions requiring mills benefiting from the specified arrangements to comply with relevant labour laws and to pay jute farmers and balers promptly. Consider these requirements separately from the compulsory commodity packaging percentages.

6. Maintain appropriate compliance records

As a practical measure, affected businesses may retain procurement documents, supplier information, packaging specifications and applicable government communications. Such internal records may help demonstrate how packaging decisions were made.

This recommendation should not be confused with a newly introduced statutory reporting requirement under S.O. 5794(E).

What Happens After 31 January 2027?

The amended Order refers to 31 January 2027 or until further orders, whichever is earlier. This means that another government order issued before the stated date may change the position.

The October 2026 notification does not explain what requirements will apply after 31 January 2027. It also does not guarantee a further extension or announce the withdrawal of compulsory jute packaging.

Food grain businesses, sugar manufacturers, jute mills and procurement agencies should therefore monitor official Ministry of Textiles notifications rather than assume the current requirements will automatically continue or expire without further legal development.

What Businesses Should Do Next

Businesses affected by the Ministry of Textiles Jute Packaging Notification may want to review their current practices and prepare for the extended regulatory period.

The following steps may help.

1. Examine the relevant government orders. Consider S.O. 1830(E) in conjunction with its October 2026 amendment, and any intervening notifications.

2. Identify the relevant packaging activities. Is there handling of rice, paddy, wheat or sugar in respect of which compulsory jute packaging requirements apply?

3. Examine the relevant exclusions. Is there any exclusion from the requirement due to the applicable pack size, export activity or some other circumstance?

4. Consider the procurement of jute bags. Have you arranged supplies in accordance with the relevant percentage and sourcing provisions?

5. Consider your documentation. Maintain your procurement and supply documentation, noting that the October amendment does not require a return or registration.

6. Monitor future notifications. Take account of future Ministry of Textiles Orders up to 31 January 2027, bearing in mind that the amended provision specifically provides for this purpose.

The above helps clarify the position without considering the date extension.

How Corpseed Can Help

Businesses dealing with food grains, sugar and jute packaging materials may need assistance understanding which regulatory requirements apply to their operations. Corpseed provides business and regulatory compliance-related services. Depending on the scope of assistance available, businesses can seek support for the following:

• Regulatory Compliance Consultancy: Understanding relevant government notifications and identifying applicable regulatory requirements.
• Industrial Compliance Services: Reviewing compliance requirements connected with manufacturing and industrial activities.
• Business Compliance Consultancy: Identifying statutory obligations relevant to business operations and preparing for applicable compliance requirements.
• Compliance Documentation Support: Organising relevant business and regulatory documents where professional assistance is needed.

The Jute Packaging Order Amendment 2026 does not introduce a mandatory consultancy requirement. Businesses should assess their obligations under the applicable government orders.

Key Takeaways

The Ministry of Textiles has amended the Jute Packaging Order through S.O. 5794(E), dated 27 October 2026. The notification replaces the original date reference with 31 January 2027 or until further orders, whichever is earlier. The underlying Order prescribes compulsory jute packaging for specified food grains and sugar, subject to applicable exclusions and relaxation provisions. The latest amendment does not change the prescribed packaging percentages or introduce a new registration process. Affected businesses should review the applicable orders and monitor further government notifications.

Need help understanding your business's regulatory requirements? Contact Corpseed to discuss relevant compliance support for your manufacturing or industrial operations.