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 four lakh workers, including workers dependent on the jute industry's forward and backward linkages. The average land area under raw Jute and Mesta cultivation stands at 6,62,000 hectares.
The Jute industry occupies an important place in the national economy of India. Jute, the golden fiber, meets all the standards for ‘safe’ packaging because it is 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. Jute production stood at 1,246.6 thousand metric tonnes during FY23 compared to 1080.0 thousand metric tonnes in FY22.
Export Trend
The exports of Indian jute and jute products have increased over the years. Between FY16 and FY21, 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 FY23 exports valued at about US$ 21.24 billion.
As per the Indian Jute Mills Association (IJMA) statistics, Sacking and Hessian exports were valued at Rs. 473 crore (US$ 56.64 million) and Rs. 296 crore (US$ 35.43 million) in FY25 (April to October). In FY24, Sacking and Hessian exports were valued at Rs. 794 crore (US$ 95.95 million) and Rs. 411 crore (US$ 49.85 million) respectively. Among the other key jute products exported, yarn exports were valued at Rs. 79 crore (US$ 9.63 million) during FY24.
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 FY24, the United States was the leading importer of all jute goods with a value of Rs. 652.92 crore (US$ 75.6 million) contributing 23% share.
As per the Indian Jute Mills Association (IJMA) statistics, Sacking and Hessian exports were valued at Rs. 473 crore (US$ 56.64 million) and Rs. 296 crore (US$ 35.43 million) in FY25 (April to October). In FY24, Sacking and Hessian exports were valued at Rs. 794 crore (US$ 95.95 million) and Rs. 411 crore (US$ 49.85 million) respectively. Among the other key jute products exported, yarn exports were valued at Rs. 79 crore (US$ 9.63 million) during FY24.
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 and 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.
The Union Cabinet on January 22, 2025 approved a minimum support price of Rs. 5,650 (US$ 65.95) per quintal for raw jute for marketing season 2025-26, an increase of 6% or Rs. 315 (US$ 3.68) over the previous MSP. The new MSP ensures return of 66.8% over all-India weighted average cost of production and will benefit growers, Union Minister for Commerce and Industry, Mr. Piyush Goyal said.
On March 7, 2024, the Cabinet Committee on Economic Affairs chaired by Prime Minister Mr. Narendra Modi, approved the Minimum Support Price (MSP) for raw jute for the 2024-25 season at US$ 63.66 (Rs. 5,335) per quintal, ensuring a 64.8% return over the all-India weighted average cost of production.
On December 8, 2023, the Cabinet Committee on Economic Affairs, led by Prime Minister Mr. Narendra Modi, approved reservation norms mandating the use of jute in packaging for the Jute Year 2023-24, ensuring 100% packaging of foodgrains and 20% of sugar in jute bags. This decision not only protects domestic production of raw jute and jute packaging materials, aligning with the principles of Aatmnirbhar Bharat, but also provides relief to 4 lakh workers and support to around 40 lakh farm families, while contributing to environmental sustainability through the use of biodegradable and renewable jute fibers.
Export Market Promotion Activities (EMPA)
Under EMPA, 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 and 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.
RELATED SITES
DA-149 (Ground Floor), Sector -I
Salt Lake City
Kolkata 700064
West Bengal
India
Tel.:+91-33-40620624
Fax: +91-33-40620624
Email: office@jpdepc.org
Website: http://www.jpdepc.org
Partners
