Government recently mandated that during the 2018-19 period, 100% of food grain and 20% of sugar must be packaged in jute bags. This decision was aimed at benefiting farmers and workers in the eastern and northeastern regions of India, including West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya, and Tripura.
Jute Industry’s Dependence on the Government Sector
The jute industry largely depends on governmental purchases, with more than Rs 6,500 crore spent on jute bags annually for packing food grains. The first 10% of jute bag orders for food grain packing will be placed through reverse auction on the Government e-Marketplace (GeM) portal to facilitate price discovery.
This order is in line with the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act (JPM) of 1987, which was designed to protect the jute sector from its plastic packaging counterpart. The Act mandates the use of sacks in certain areas to boost the raw jute market. Although initially these regulations included sugar, cement, fertilizer, and foodgrain packaging, some sectors have been exempt due to a market demand for synthetic packaging alternatives.
About Jute: The Golden Fibre
Jute, known as the ‘golden fibre’, is one of the most widely used natural fibres in a variety of textile applications. It grows best in tropical lowland areas with humidity between 60% and 90%. Moreover, jute is a rain-fed crop that requires minimal fertilizer or pesticides.
Retting of jute is a process where the tied bundles of jute stalks are immersed in water, separating the fibres from the woody stalk. The world’s leading jute producing countries are India, Bangladesh, China, and Thailand.
| Country | Position in Global Jute Production |
|---|---|
| India | 1st |
| Bangladesh | 2nd |
| China | 3rd |
| Thailand | 4th |
Jute Industry in India
India is the world’s largest producer of raw jute and jute goods, contributing to over 50% and 40% respectively of global production. The cultivation of jute in India is mainly confined to the eastern region of the country. The jute crop is grown in seven states – West Bengal, Assam, Orissa, Bihar, Uttar Pradesh, Tripura, and Meghalaya – with West Bengal accounting for over 50% of total raw jute production.
The National Jute Board, Ministry of Textiles, acts as the apex body for promoting these products both domestically and internationally. The first jute mill was established at Rishra (Bengal – now in West Bengal), on the river Hooghly near Calcutta in 1855 by Mr. George Aclend. In 1959, the first power-driven weaving factory was set up.
Potential of Jute Industry
Jute Geotextile, a variety of jute available in woven and non-woven fabrics, is used in erosion control, separation, filtration, and drainage in civil engineering work, and by the agricultural sector. It also finds utility in rural road pavement construction and agro plant mulching.
The diversification of jute products provides ample opportunities for employment generation with diversified jute products such as fancy jute bags, soft luggage, footwear, door panels, check sarees, a wide range of furnishings, gift items, table lamps, floor decor, wall decor, and many other items.
Government Initiatives for Promoting Jute Industry
Several government initiatives have been launched to bolster the jute industry. For instance, the Jute Corporation of India (JCI) procures raw jute at Minimum Support Price (MSP) from jute growers to protect their interests.
Additionally, the Incentive Scheme for Acquisition of Plants and Machinery (ISAPM), which was launched in 2013, facilitates modernisation in existing and new jute mills and upgrades technology in existing jute mills. The Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise) pilot project that started in 2015 aims to address the difficulties faced by jute cultivators by providing them certified seeds at subsidised rates and introducing them to newer retting technologies under water limiting conditions.
To further stimulate demand in the jute sector, the Government has imposed an anti-dumping duty on the import of jute goods from Bangladesh and Nepal.
