Context: Recently, Standing Committee on Labour, Textiles and Skill Development released a report on the Development and Promotion of the Jute Industry.

Jute Industry in India

• India accounts for 70% of the world’s jute production.

• Employment: It employs around 3.7 lakh workers directly, with around 90% of the production being consumed locally.

• About 73% of jute industries are concentrated in West Bengal.

Production and Export Data

• 2022-23 Production of Jute Goods: 1,246,500 metric tons (MT)

• 2022-23 Exports of Jute Goods: 177,270 MT, constituting 14% of the total jute goods production, marking a 56% increase in exports compared to 2019-20.

• 2022-23 Import of Raw Jute: 121.26 thousand MT, a significant increase from the previous year, mainly due to the high quality of imported jute from Bangladesh used for manufacturing value-added products.

• Top Export Markets: Countries that account for 70% of the jute goods exports include the USA, France, Ghana, the UK, The Netherlands, Germany, Belgium, Côte d'Ivoire, Australia, and Spain.

Major Issues with the Jute Industry in India

• High Rate of Procurement by Mills: Mills procure raw jute at prices higher than their selling prices post-processing. This is because mills do not directly acquire raw materials from farmers due to logistical challenges. Farmers are often located far from mill locations, requiring mills to deal with multiple farmers. Additionally, the procurement process involves middlemen or traders, adding to costs.

• Supply of raw material: Despite the Government’s efforts to increase the area under Jute, India is not self-sufficient in raw material.

• Obsolete mills and industries: the mills and machinery in the Jute sector are obsolete and need technology upgradation etc.

• Increased competition: Stiff competition with the synthetic industry for similar packaging material, as the synthetic material is much cheaper. Also, Bangladesh mills are competing with China for better quality products.

• Decrease in demand: demand for jute products has decreased due to the easy availability of alternative fibre.

• For instance, the availability of local fibres like Mesta (especially in Andhra Pradesh) etc., have reduced jute demand.

• Strikes and lock-outs: The jute industry in India is mostly concentrated in the eastern part of India (especially West Bengal), there exists a strong labour union which has led to frequent strikes, lockout and other labour issues leading to the closing up of many firms.

• Power supply: Infrastructural bottlenecks, power, transportation, and capital also pose several threats to the sustainability of the Jute industry.

Key Recommendations of the Standing Committee

• Promote modernization by providing digital moisture meters to improve quality.

• Develop a comprehensive policy for reviving closed mills and establishing new ones.

• Establish schemes, in collaboration with the Ministry of Skill Development and Entrepreneurship, to address the shortage of skilled workers.

• Implementation of the National Jute Development Programme with specific schemes to enhance jute agriculture, modernization, diversification, and workers' welfare.

• Encouragement of scientific jute cultivation and retting practices through the JUTE-ICARE program to improve fibre quality and productivity.

• Modernization of jute mills and MSME JDP units for the production of Jute Diversified Products (JDPs).

• Establishment of Jute Resource cum Production Centres (JRCPCs) and Jute Raw Material Banks (JRMBs) to support artisans and MSMEs.

• Incentives for the export of JDPs to make Indian jute products competitive in international markets.

• Promotion of jute in domestic markets through the Market Development & Promotion Scheme (MDPS) and support for jute design and innovation.

• Scholarship schemes for the girl children of jute workers to improve education standards.

Related Initiatives for the Jute Sector

• Golden Fibre Revolution and Technology Mission: It aims to enhance jute production in India.

• Jute Packaging Materials Act, 1987: Despite competition from synthetic fibres, the Jute Packaging Materials Act, 1987, mandates the use of jute packaging material to support workers and farm families.

• Jute Geo-Textiles (JGT) is promoted under the Technical Textiles Mission, offering diverse applications in civil engineering and erosion control.

• Jute SMART, an e-government initiative, enhances transparency in the jute sector by providing a platform for government procurement of sacking.

• Jute Mark Logo was launched (2022) for branding and positioning of Indian Jute globally.

• National Jute Development Programme– An Umbrella Scheme for the development of Jute Industry.

• The National Jute Board (NJB) has been constituted as per the National Jute Board Act, 2008.