Jute Industry of India

Jute Textile Industry is one of the major Industries in the Eastern India, particularly in West Bengal.  Jute supports around 40 Lakh farm families and provides direct employment to 2.6 Lakh Industrial Workers and 1.4 Lakh in the tertiary sector.  The production process in the Jute Industry goes through a variety of activities, which include cultivation of raw jute, processing of jute fibres, spinning, weaving, bleaching, dyeing, finishing and marketing of both, the raw jute and its finished products. So, Jute Industry is labour intensive and as such its labour-output ratio is also high in spite of various difficulties being faced by the industry. Capacity utilization of the industry is around 75 per cent.  Jute industry contributes to the export earnings in the range of Rs. 1,000 to Rs.1, 200 crore annually.

Basic Production Data

India had produced 102 lakh bales of jute in 2011-12 Crop year (July -June). One bale of jute is equal to 332.5 kg.

Jute production in the country is expected to decline by 12% to 90 lakh bales in the 2012-13 crop year due to poor rains in the growing states as per an August 2012 release of the National Jute Board.

Jute is cultivated in seven states — West Bengal, Bihar, Odisha, Assam, Tripura, Meghalaya and Andhra Pradesh.

Jute is normally cultivated as an inter-crop between the two main agricultural seasons, kharif and rabi.

There are 33 odd districts spanning West Bengal, Orissa, Bihar and Assam, which account for 98.41 per cent area under jute cultivation, as well as 98.43 per cent of total raw jute production in the country.

Nadia, Murshidabad, Purnea, Cooch Bihar, West Dinajpur, Jalpaiguri, North 24-Pargana, Hoogly and Malda districts in West Bengal account for 71 per cent of area under jute cultivation in India and 73.09 per cent of total raw jute production in the country.

There are 77 composite jute mills in India, of which 60 jute mills are located in West Bengal. 68 are in private sector.

Jute and Paddy Intercropping

Jute is an important cash crop, which is as an intercrop before paddy transplantation in most parts of the country. Paddy and jute are not competing crops as they are not sown during the same period on the same land. This has significant contribution to the farm income of a large section of rural households.

National Jute Policy

The government of India announced its First National Jute Policy in April 2005 to facilitate the Sector to attain and sustain a pre-eminent global standing in the manufacture and export of Jute products by enabling the Jute Industry to build world class state-of-the-art manufacturing capabilities, and strengthen research and development activities, through public private initiative, and ensure remunerative prices to the farmers.

National Jute Board

The National Jute Board Act, 2008 received the assent of the President on the February 2009 and was published in the Gazette of India on February 12, 2009. The Act provides for the establishment of the National Jute Board for the development of cultivation, manufacture and marketing of jute and jute products and for matters connected. The National Jute Board (NJB) is the apex body for promotion of Indian Jute. The Headquarters of the National Jute Board are in Kolkata, with regional representations in Jute growing areas and in other areas for marketing of the Jute Products. The Jute Manufactures Development Council was constituted as a statutory body in 1984 and now has been merged with the National Jute Board.

International Jute Study Group

The International Jute Study Group (IJSG) is an intergovernmental body set up under the aegis of UNCTAD to function as the International Commodity Body (ICB) for Jute, Kenaf and other Allied Fibres. Its headquarters are located at Dhaka, Bangladesh.

Jute Technology Mission (JTM)

Jute Technology Mission (JTM) was approved by the government of India in 2006 and it has 4 mini Missions. The Jute Technology Mission (JTM) will be executed during the XIth five year Plan with an overall outlay of Rs. 355.56 crore. The Objectives of the JTM are as follows:

  • To strengthen agricultural research and technology achievements
  • Development/extension of raw jute Ministry of and transfer of improved technology
  • To develop efficient market linkages Ministry of for raw jute
  • To modernize, technologically upgrade, improve productivity, Textiles diversify and develop human resource for the jute industry

Jute Packaging Norms and Legal Protection to Jute Cultivators

Please note that Parliament had enacted the Jute Packaging Mandatory Act, 1987 with an objective to protect the Jute industry. As per this act, the food grain and sugar produced is reserved and mandatorily packed in jute bags manufactured every year.

The Government recently said that the jute industry could not match demands in 2011 – 12 for supply of 13 lakh bales or 4.33 lakh tons of gunny bags for Rabi supply of 2012 – 13. Government said that with 10 mills remaining closed the jute industry is short in capacity by 1.5 lakh ton. Presently, it can produce 11 lakh tons of jute sacks / gunny bags. It’s installed capacity however is 15.02 lakh tons and assuming a 83 percent utilization it’s stated capacity is 12.47 lakh tons. The industry earn a business of around Rs 10,000 crore by selling its entire produce to FCI, sugar mills and co-operatives and in the market. FCI makes a bulk purchase of almost 35 – 40 % of its produce. In 2012 -13 FCI is expected to purchase 6.34 lakh tons and 4.33 lakh jute/ gunny bags.

Consequent to this, the Cabinet Committee on Economic Affairs (CCEA) has decided in October 2011 to dilute mandatory jute packaging norms for sugar and food grains.  The CCEA diluted JPMA norms by 60 per cent for sugar and 10 per cent in case of food grains based on the recommendations of the Union textiles ministry. The last dilution was done in 2001.

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