Jute Industry in India

Context:

The Cabinet Committee on Economic Affairs (CCEA) has fixed the minimum support price (MSP) of raw jute for the 2025-26 marketing season at ₹5,650 a quintal, an increase of ₹315 over the price in 2024-25.

Jute Fibre

Definition and Properties

• Plant Fibre
  • Jute fibre is a natural plant fibre known for its ability to be spun into strong and coarse threads.
  • It is soft long and shiny making it versatile for various applications.
• Primary Producers
  • The genus Corchorus is the largest source of jute fibre.
• Characteristics
  • Bast fibres derived from the phloem or bast which is part of the stem of the plant.
  • Color Brown to off white in color.
  • Also called the golden fibre due to its color and cash value.

Chemical Composition

• Lignin
  • It is a group of complex organic polymers giving rigidity and strength to the fibres.
• Cellulose
  • An organic polysaccharide made of a straight chain of hundreds or thousands of Dglucose molecules.
  • Responsible for the fibres flexibility and durability

Uses

• Commonly used to make
  • Gunny cloth
  • Hessian cloth
  • Burlap cloth

Economic and Commercial Importance

• Cost Effectiveness
  • Jute is one among the most inexpensive plant fibers next to cotton.
• Versatility
  • Its renewable and biodegradable nature makes it a widely used element in sustainable and ecofriendly applications.

Ideal Condition for Jute

Jute grows best in a warm, humid climate with well-distributed rainfall and fertile, well-drained soil. 

Rainfall

• Jute needs 160–200 cm of rainfall annually, with extra rainfall during the sowing season.
• Locations with less than 1,000 mm of rainfall or water logging are not suitable for jute. 

Temperature

• Jute grows best in temperatures between 24–38°C. 
• Temperatures below 15°C and above 43°C are not suitable for jute growth 

Soil

• Jute grows best in fertile, well-drained, alluvial, or loamy soils. 
• The ideal pH range for jute is 4.8–5.8 

Climate

• Jute grows best in a warm, humid climate with alternate sunshine and rainy days.
• Relative humidity of 70–90% is ideal for jute growth. 

Potential of the Jute Industry

Economic Significance

The jute industry is one of the important sectors of India’s economy, particularly in the eastern region, and West Bengal is prominent among these.

• Eco Friendly Features
  • Jute is known as the golden fibre and is a natural renewable biodegradable and ecofriendly material. Hence it is the best option for sustainable packaging solutions.

India in Global Jute Production

• Global Leader
  • India is the worlds largest producer of jute accounting for 70% of the global jute output.
• Concentration in West Bengal
  • Of the 108 composite jute mills in India 79 are located in West Bengal accounting for 73 of the industry’s concentration.
• Employment
  • About 37 lakh workers are directly employed in the industry
  • Around 90% of jute production is consumed domestically.
• Import of Raw Jute
  • India had imported 1,21,260 MT of raw jute mainly from Bangladesh. Procurement costs to meet quality for added value products had been very high.

Challenges in Jute Industry

• Procurement Costs
  • The procurement cost was very high and sometimes even more than the selling price for the mills because of the involvement of middlemen and traders.
• Raw Material Supply
  • Inadequate raw jute availability domestically restricts production.
• Old Infrastructure
  • Old machinery and old mills reduce efficiency and competitiveness.
• Competition
  • Lower synthetic materials and other fibers like mesta impact jute demand.
• Labour and Infrastructure Problems
  • Labour strikes and poor infrastructure such as electricity and transportation hinder operations.

Major Producers

• India is the world’s largest producer of jute followed by Bangladesh and China. Cultivated mainly in West Bengal, Assam and Bihar the three states combined account for nearly 99 of the total production.

Jute Organisations

• Jute Corporation of India Limited (JCI)
  • This is a public sector undertaking set up in 1971. The objective of JCI is to safeguard the interest of jute growers and stabilize the price of raw jute.
• National Jute Board (NJB)
  • NJB is a statutory body and was constituted during the year 2010. NJB provides yield and quality promotion of jute and assists raw jute by improving its marketing and price stabilization.
• Office of the Jute Commissioner
  • An organization related to jute.

Government Schemes for Promoting the Jute Industry

• National Jute Development Programme (NJDP)
  • It is a scheme initiated for promoting and developing the jute sector. Other schemes associated with NJDP include Jute ICARE, JRCPC, JRMB, and JRO.
• Jute Technology Mission (JTM)
  • This scheme was undertaken with an aim to upgrade the quality and yield of jute fibers.
• ISAPM
  • Incentive Scheme for Acquisition of Plant & Machinery: The scheme is meant to provide incentives to jute mills and MSME-JDP units for acquiring new machinery.
• JRMB
  • Jute Raw Material Bank: The scheme provides jute raw material to jute artisans and MSMEs at Mill Gate Price.
• JRO Scheme
  • Jute Retail Outlets Scheme: The scheme is meant to help artisans and entrepreneurs promote and sell jute diversified products (JDPs).
• Jute Mark India Logo
  • A plan for the authenticity certification of jute products.
• Jute Integrated Development Scheme (JIDS)
  • The scheme offers training to artisans and WSHGs to manufacture JDPs.
• Subsidy Program
  • A plan under which subsidies are given to the jute industry.

The schemes are implemented by the National Jute Board, which is an attached office of the Ministry of Textiles.