Govt and sugar industry face off over jute bags

In India, the world's largest consumer of sugar, the government and producers have locked horns in court over a contentious issue: jute bags.

- Reuters

NEW DELHI:

Prime Minister Narendra Modi's government has been tightening enforcement of a 1987 law, which obliges sugar mills to pack 20% of their supplies in jute bags or face fines for non-compliance, in a bid to support the traditional fibre industry.

The law now faces a legal challenge from Indian sugar mills, which say using jute bags each year costs them an additional $76 million compared to recyclable plastic ones. They also argue the fibre bags also increase the risk of sugar contamination, previously unreported court documents show.