Sources close to the development said the proposal was under the consideration of the Cabinet and a decision would be taken soon.
This assumes significance for the plastic industry, as any relaxation in the Act for this year will enhance the use of plastic bags for packaging of food grains. Under the Act, it is mandatory to pack food grains and sugar in jute bags. While the chemicals and fertilisers ministry has been demanding the Act be repealed to increase the use of plastic bags, at present it resorts to annual amendment of the Act to facilitate the use of plastic bags.