Jute Industry and Exports

Total exports of jute yarn, jute hessian, floor coverings of jute, and other jute manufacturers was US$ 471.82 million in FY23.

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS)

Last updated: Aug, 2023

Introduction

The jute industry is among the oldest and most prominent industries in India. The major jute-producing states in India are West Bengal, Assam, Bihar, Orissa, and Andhra Pradesh. However, the Indian jute industry mainly depends on West Bengal due to the higher number of mills. The industry employs about 3.5 lakh workers, which include workers dependent on forward and backward linkages of the jute industry. The average land area under raw Jute & Mesta cultivation stands at 800,000 hectares.

The Jute industry occupies an important place in the national economy of India. Jute, the golden fibre meets all the standards for ‘safe’ packaging because of being a natural, renewable, biodegradable, and eco-friendly product. The jute industry in India produces different types of jute products such as hessian or burlap (plain-woven fabric), sacking (loosely woven cloth), food-grade jute cloth, yarn, carpet backing cloth, blankets, decorative fabrics, floor coverings, and shopping bags. India has an installed capacity of over 50 million spindles and 8,42,000 rotors.

India is the leading jute goods-producing country globally, accounting for about 75% of estimated world production. Most of the Jute is consumed domestically due to its vast domestic market demand, with an average domestic consumption of 90% of total production. During 2022-23 (up to November 2022), Jute goods production stood at 808.5 lakh tonnes from 1,080 lakh tonnes of jute goods production in 2021-22.

Commodity wise share in sports goods exports

Export Trend

The exports of Indian jute and jute products have increased over the years. Between 2015-16 and 2020-21, the total jute exports grew at a CAGR of 9%. In March and February 2022, India exported jute and floor coverings worth about US$ 49 million each. Several other jute-diversified products are exported from India, such as hand & shopping bags, gift articles, decorative fabrics, etc. Among the total shipped jute items, the Jute diversified products (JDP) have the maximum share with 2021-22 exports valued at about US$ 169 million.

As per the Indian Jute Mills Association (IJMA) statistics, Sacking and Hessian exports were valued at US$ 65 million (Rs. 502.62 crore) and US$ 47 million (Rs. 363.45 crore) in 2021-22, growing from US$ 56 million (Rs. 428.98 crore) and US$ 35 million (Rs. 267.11 crore) of exports recorded in the previous year, respectively. Among the other key jute products exported, yarn exports were valued at US$ 54 million (Rs. 416.70 crore), recording a growth of 23.1% over the previous year. Exports of raw jute were valued at US$ 58 million (Rs. 449.40 crore), significantly higher than US$ 23 million (Rs. 177.43 crore) in the previous year (2021).

Export Destinations

India exports jute and jute products mainly to the USA, the UK, Australia, Belgium, Egypt, Germany, Italy, Japan, Saudi Arabia, and Turkey. During 2021-22, the United States was the leading importer of jute manufacture including floor covering, from India, with a value of US$ 107.13 million.

As per National Jute Board statistics, the export of all jute goods to the top 40 countries between 2021- 2022 stood at 83% of the total exports valued at Rs. 20,214.48 million (US$ 263 million), indicating a significant share of traditional markets. All jute goods exported to the USA were the highest at US$ 107.13 million (Rs. 8,819.02 million), followed by France and Ghana exports which were valued at US$ 44.46 million (Rs. 3,659.90 million) and US$ 41.67 million (Rs. 3,430.75 million), accounting for 23%, 10%, and 9% of the total all jute goods exports, respectively. During 2022-23 (up to July 2022), India’s jute diversified products (JDP) export contribution stood at US$ 160.38 million (Rs. 13,202.54 million). The top five destinations for jute diversified product exports from India are the USA, France, the UK, the Netherlands, and Spain.

Country-wise share of Indian sporting goods exports

Government Initiatives

For the modernization and development of the jute industry in India, the National Jute Board has implemented several schemes and initiatives. Some of the schemes meant for the improvement in production are Improved Cultivations and Retting Exercises (ICARE), Jute Diversifications Scheme, Jute Resource-cum Production Centre (JRCPC), and Jute Retail Outlet scheme for exposure to products and artisans.

The Market Development & Promotion, Domestic Market Promotion Activities (DMPA), and other publicity and promotion activities and schemes are meant to increase the sales and exports of jute products in India.

Export Market Promotion Activities (EMPA)

Under EMPS, the government implements various activities like international-level fairs in India, international fairs abroad, international mega fairs, business delegations/ road shows/ international conferences and seminars, etc.

Market Development & Promotion scheme (MDPS)

MDPS scheme aims to develop, promote, and expand markets for Jute and Jute diversified products within India and abroad. It provides selling, marketing, and promoting platforms/avenues to Jute Artisans, entrepreneurs, women self-help groups, Jute MSMEs, Jute exporters, and Jute millers.

Capital Subsidy for Acquisition of Plants and Machinery (CSAPM) Scheme

CSAPM scheme has been approved by the Ministry of Textiles, Govt. of India and is implemented through the National Jute Board (NJB), a statutory body under the Ministry of Textiles, Govt. of India. The objective of the Scheme is to provide financial assistance to the beneficiaries for the purchase of Jute diversified products (JDP) manufacturing machinery. This Scheme is initiated under the National Jute Development Program (NJDP) umbrella scheme of NJB during the 15th Finance Commission (2021-26).

Governing Body

National Jute Board

The National Jute Board was framed by the Ministry of Textiles, Government of India, in 2008. The board works towards human resource development for innovation and the exploration of new ideas. The activities of the jute board are the dissemination of technology, machinery assistance, human resource development through training, etc. The board engages in various research and human resource development programmes to explore the new and innovative use of jute.

Jute Product Development & Export Promotion Council (JPDEPC)

The JPDEPC was created in 1958 to advocate the exports of jute and jute products in India. The activities of the council are to arrange fairs & expositions, analyze the buyer-seller market, and act as a registration authority for exporters. The management of the council is supervised by a committee of 12 people, two of whom were nominated by the government of India. Presently, the council has 250 members covering various segments of manufacturing and trading of jute products.