INDIAN JUTE INDUSTRY

1. Introduction

• The Jute industry occupies an important place in the national economy of India. It is one of the major industries in the eastern region, particularly in West Bengal. Jute, the golden fibre, meets all the standards for safe packaging given being a natural, renewable, biodegradable and eco-friendly product. 
• It is estimated that the jute industry provides direct employment to 0.37 million workers in organised mills and diversified units including tertiary sector and allied activities and supports the livelihood of around 4.0 million farm families. 
• In addition there are a large number of persons engaged in the trade of jute. Jute, the golden fibre, meets all the standards for safe packaging given being a natural, renewable, biodegradable and eco-friendly product. 
• The principal varieties of jute in India are tossa (Corchorus Olitorious) and white jute (Corchorus capsularis). 
• Though the jute plant is known principally for its versatile fibre, every part of the plant has its use. The tender leaves are cooked and consumed as vegetables. 
• The leaves which fall off the plant enrich the soil, about 1 MT of dry matter is put back into the soil and about 3 MT of roots remain per acre of land. 
• The stick which remains after jute fibre is extracted is used as a domestic fuel and also as a cheap building material. 
• The plant itself has a very high carbon dioxide assimilation ability; in the 120 days of its growing period, an acre of jute absorbs about 6 MT of carbon dioxide from the atmosphere and releases 4.4 MT of oxygen; several times higher than trees. 
• Apart from the versatility of the jute plant, the plant compares very favourably in terms of its ecological footprint when compared with synthetic packaging materials. 

2. Factors limiting the distribution of jute industries

• Availability of quality jute: The Ganga-Brahmaputra delta grows about 90 per cent of India’s jute and provides raw material to jute mills.
• Transportation: Cheap water transportation is available in the Ganga-Brahmaputra delta region. The area is also served by a network of roads and railways.
• Labour: High density of population is required for abundant cheap labour.
• Water: Abundant water is required for processing, washing, and dyeing jute.
• Market: Big capitalists are living in and around Kolkata and the High density of population in West Bengal makes the easy flow of capital in this industry and provides a robust market.
• Power: Coal is obtained from Raniganj fields which are hardly 200 km away from the Ganga-Brahmputra region.

3. Challenges associated with Jute Industries

• Overall demand for jute in the international market is reducing.
• There is tough competition from synthetic packing materials from advanced countries of Europe and N. America. Therefore the market for jute goods is shrinking. These products are durable and cheaper.
• Within the jute goods market, Bangladesh mills are competing along with China with better quality goods.
• Bulk handling practices in the US, Argentina, Canada, Japan and Europe have decreased the demand for jute.
• Cost of Indian jute product is comparatively higher.
• Availability of local fibres like Mesta (especially in Andhra Pradesh) etc, have reduced jute demand.
• Jute industry is facing stiff competition from synthetic packing material.
• This specific industry is also using age-old machinery to produce jute yarns and fabrics (except 2-3 countable industries). Due to the use of very old primitive machinery, the efficiency of the machines is not up to the mark (on average within 80 per cent). Due to frequent breakdowns, defective and inferior quality products are being made. No modernization has been made in machinery development and automation. New mills in Bangladesh are producing better quality goods which is diminishing the competitiveness of Indian mills.
• Infrastructural bottlenecks, power, transportation, and capital also pose several threats to the sustainability of the Jute industry.
• Raw material-Even after a substantial increase in area and yield in jute production, India falls short of requirements which leads to underutilization of the installed capacity of the jute industry.
• In West Bengal strong labour unions frequently lead to the problems of strikes, lockouts and other labour problems, this has further decreased the competitiveness.

Way Forward

• evolve an integrated approach to jute cultivation in the matters of formulation of schemes, extension work, implementation and evaluation of schemes aimed at increasing the yield of jute and improving the quality thereon ;  
• promote the production of better quality raw jute;  
• enhance the productivity of raw jute;  
• promote or undertake arrangements for better marketing and stabilisation of the prices of raw jute;  
• promote standardisation of raw jute and jute products;  
• suggest norms of efficiency for the jute industry to eliminate waste, 
• obtaining optimum production, improving quality and reducing costs;  
• propagate information useful to the growers of raw jute and manufacturers of jute products;  promote and undertake measures for quality control or raw jute and jute products;  
• assist and encourage studies and research for the improvement of processing, quality, 
• techniques of grading and packaging; of raw jute;  
• promote or undertake surveys or studies aimed at the collection and formulation of statistics regarding raw jute and jute products;  
• promote standardisation of jute manufacturers;