The jute industry holds historical and economic importance for India. Being the world’s largest producer of jute, India aims to further modernize the industry and boost exports. Recent policy initiatives have focused on diversification, quality improvement and supportive infrastructure.
Overview of Jute Industry in India
- Around 0.37 million hectares under jute cultivation, mainly in West Bengal, Bihar and Assam.
- Over 4 million farm households engaged in jute farming.
- Over 60 state-owned mills and several small scale units involved in jute product manufacturing.
- Employment for ~0.2 million workers in organized jute industry establishments.
- Annual jute goods production ~1.7 million tons.
- India accounts for ~60% of global raw jute production and ~55% of global jute goods production.
Key Challenges Faced
The jute industry faces structural issues like old machinery, inefficient processes, lack of modernization limiting its potential:
- Fluctuating raw jute prices and supply hindering stable operations
- Competition from synthetic substitutes leading to falling domestic and international demand
- Challenges in agricultural stage: outdated retting process, overdependence on rainfall etc.
- Poor R&D expenditure; lack of product diversification and innovation
Policy Initiatives to Promote Jute Industry
The government aims to address these challenges through dedicated policies under the Jute Policy 2020 and NIRJAFT schemes. Key interventions:
- Financial support to mills for modernization and reopening of closed units
- Boosting R&D and product diversification into jute diversified products (JDPs)
- Focus on jute geo-textiles through mandatory provisions in infrastructure projects
- Expansion of raw jute procurement under MSP operations
- Export promotion measures like tax rebates, marketing assistance
Achievements and Future Outlook
These schemes have yielded results based on 2023-24 progress:
- ~76,000 ha area brought under improved retting
- 16 closed jute mills reopened; productivity per worker increased
- Jute geo-textiles mandatory in NHAI and Railways projects
- Raw jute MSP procurement doubled; Price stabilization fund enhanced
| Parameter | Performance in 2023-24 over 2013-14 |
| Area under Jute Cultivation | Increased by 7% |
| Number of Jute Mills | Increased by 5% through reopened closed units |
| Jute Goods Production | Increased by 22% |
| Jute Productivity per Hectare | Increased by 15% |
| Export of Jute Goods | Increased by 37% to touch $350 million |
The industry is poised for strong growth based on these interventions alongside increased R&D, diversification and farmer training programs lined up. The aim is to nurture a globally competitive, sustainable and inclusive jute industry.
Recent Policy Initiatives
- In 2023, the Jute Corporation of India (JCI) signed agreements with major e-commerce companies like Amazon, Flipkart and Snapdeal to supply jute bags to support mandatory packaging norms.
- The National Jute Board collaborated with the Ministry of Petroleum and Natural Gas to introduce guidelines for wider inclusion of jute geo-textiles in LPG pipeline projects.
- In the Union Budget 2024-25, the Finance Minister announced a dedicated package for mechanization in jute farming, especially purchase of harvesting machines through subsidized loans.
- The Budget also expanded the scope of the NIRJAFT scheme to promote product and market development in Indian jute sector on the lines of National Technical Textiles Mission.
Emerging Areas
- Owing to jute’s eco-friendly credentials and the sustainability drive, new trends like green weddings are preferring decoration with jute-based products.
- In 2024, the Indian Railways floated tenders mandating use of a specific percentage of jute composites for manufacturing curtains and seat covers to reinforce commitment to green initiatives.
- Leading Indian fashion designers have also launched special jute-themed collections using fibers and fabrics diversified from jute.
Effective policies, adoption of latest technologies, increased farmer linkages and diversified product mix will enable the jute business thrive in an evolving market. The future lies in harnessing its eco-friendly credentials to emerge as a strategic Indian industry.
