Chairman of IJMA Raghav Gupta said till 2010, the mandatory provisions of the Act ensured that jute bags were used for 100 per cent packaging of sugar and foodgrains.
However, in the Cabinet Committee on Economic Affairs (CCEA) meet in November 28 this year, this was diluted by 80 per cent for sugar and 10 per cent for foodgrains, he told reporters here.
IJMA also said that despite several representations to the Jute Commissioner Subrata Gupta, the matter had not being taken up before the Textiles Ministry.
Kajaria alleged that due to intense lobbying by the plastics industry, the Centre was diluting the mandatory provisions of the Act.
At the time of legislation in 1987, cement and fertilisers were also to be mandatorily packed in jute bags, but it was later totally withdrawn leaving only sugar and foodgrains.
About 2.5 lakh workers were directly employed in the jute industry and 40 lakh farmers were involved in jute crop cultivation.