Context: A significant 20% drop in Jute production is expected in 2024-25 due to impact of natural calamities like floods in the regions of West Bengal and Assam.

About the Jute crop in India

• Temperature: Between 25-35°C

• Rainfall: Around 150-250 cm

• Soil Type: Well-drained alluvial soil

• Production: India is the Largest producer of jute followed by Bangladesh and China.

• Acreage and Trade: Bangladesh leads in acreage and trade, accounting for three-fourths of global jute exports.

• Concentration: Mainly in eastern India due to the rich alluvial soil of the Ganga-Brahmaputra delta

• Major Producing States: West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya, Tripura

State of Jute Industry in India

• The jute industry is one of India’s oldest and most prominent industries, with major producing states being West Bengal, Assam, Bihar, Orissa, and Andhra Pradesh.

• Approximately 73% of the country’s jute industries are concentrated in West Bengal.

• The industry heavily relies on West Bengal due to the higher number of mills, and approximately 4 lakh workers are employed in this industry and its related sectors.

• India is the world’s leading jute goods producer, accounting for about 75% of estimated global production, but about 90% of total production is consumed domestically.

• Jute Technology Mission 2.0 is under process of drafting, along with research projects to find more applications for jute.

• About one tonne of jute plant would give 495 litres of ethanol, which led to establishment of a pilot unit.

Opportunities 

• Provides direct employment to 0.37 million workers in organized mills.

• Jute exports had the potential for Rs 4,500 crore annually (in 2023-24 it was Rs 3,000). 

Challenges 

• Declining area: Area under jute cultivation declined (1.7 Lakh ha between 2013-14 to 2021-22)

• Availability of Low-cost alternative: E.g. Synthetic Products.

• Also, there is lack of impetus from states to procure jute products such as jute geo-textiles.

• Quality: More than 80% of raw jute grown is below average or poor quality.

• Other: Lack of Modernization, Shortage of skilled labour force, etc. 

Government Initiatives

• Governing Bodies: National Jute Board and Jute Product Development & Export Promotion Council (JPDEPC).

• JPDEPC was formed in 1958 to promote jute exports through fairs, market analysis, and registration services.

• Reservation Norms: The Cabinet Committee on Economic Affairs mandated the use of jute for packaging foodgrains and sugar, ensuring 100% and 20% packaging, respectively, in jute bags.

• This decision supports domestic production, provides relief to workers and farmers, and promotes environmental sustainability.

• Export Market Promotion Activities (EMPA): International fairs, business delegations, conferences, and seminars.

• Market Development & Promotion Scheme (MDPS): Provides platforms for jute artisans, entrepreneurs, and exporters.

• Capital Subsidy for Acquisition of Plants and Machinery (CSAPM): Offers financial assistance for the purchase of jute diversified products manufacturing machinery.

Measures Suggested (as per Standing Committee on Labour, Textiles and Skill Development)

• Prepare comprehensive policy for setting up new mills. 

• Devise a suitable scheme to address the shortage of skilled workers, etc. 

About National Jute Board

• It is a statutory body established in 1955 to promote and develop the jute industry in India, and governed by National Jute Board Act-2008, as framed by the Ministry of Textiles.

• The Board’s primary objectives include:  

• It focuses on human resource development, technology dissemination, machinery assistance, training, quality control, market assistance, and ensures fair prices to jute growers .

• The Board provides price support to jute growers through various schemes, including the Jute Corporation of India (JCI).

• This enables organized and decentralized sector to compete and increase the global share of Indian jute goods consumption.

Key Initiatives

• Improved Cultivation and Retting Exercises (ICARE), Jute Diversification Scheme, Jute Resource-cum Production Centre (JRCPC), and Jute Retail Outlet scheme.

• Market Development and Promotion: Domestic Market Promotion Activities (DMPA) and other publicity and promotion activities.

• Upgrade machinery urgently to benefit both mill owners and consumers.

• Facilitate easy loan availability for industry upgrades and address sick mills.

• Ensure a consistent supply of raw materials, power, and labour; improve labour laws and skills.

• Promote foreign investment to boost competitiveness.

• Implement automation to enhance productivity and reduce costs.

• Encourage large-scale production for economies of scale and lower costs.

• Support research and development.

• Reassess fibre neutrality and explore trade agreement opportunities.

Jute Technology Mission 2.0

• The National Jute Board is working on a draft for Jute Technology Mission 2.0.

• The Board is conducting meetings with stakeholders to develop this mission.

• The Board is supporting research projects to explore new applications for jute.

• One of the research focuses is the extraction of ethanol from jute plants, with lab testing already completed.

• It is estimated that one tonne of jute plant can yield 495 liters of ethanol.

• There are plans to establish a pilot unit for ethanol extraction.

• Another ongoing project aims to develop jute composite materials, expanding the potential uses of jute.

Conclusion

• Atmanirbharta’ will not be possible if the government fails those sectors that are already self-sufficient and capable of dominating the global market. With focused interventions in this sector, we might enhance its performance in terms of more investment, employment generation and export earnings.

• Initiatives of government like the Amended Technology Upgradation Fund Scheme (ATUFS), Scheme for Integrated Textile Parks (SITP) etc. are timely interventions in this sense.