Explanation:

Recently, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has approved that 100% of the foodgrains and 20% of the sugar shall be mandatorily packed in jute bags. The decision will give an impetus to the diversification of the jute industry.

• Jute, also known as the golden fibre, is one of the longest and most used natural fibre for various textile applications.
• It is used in making gunny bags, mats, ropes, yarn, carpets and other artefacts.
• Top Jute Producing States: West Bengal > Bihar > Assam > Andhra Pradesh > Odisha.
• It is mainly concentrated in eastern India because of the rich alluvial soil of Ganga-Brahmaputra delta. Hence, statement 1 is correct.
• Jute is included in the Minimum Support Price (MSP) regime of the country.

Hence both statements are correct.