Due to its natural colour and importance jute has become known as the ‘golden fibre’ . The fabric has little impact on the environment and is proven to be very durable and the plants are easy to grow, produce a large crop and do not require various pesticides and fertilizers. The fiber is a relation of the flax and hemp plants and is extracted by a very similar method. Jute has a vast array of uses ranging from carpet backing to re-usable bags. Jute is mainly grown in India in the fertile Ganges Delta where it produces a high yield annual crop.
India is the largest producer and consumer of jute products in the world. The figure is around 1.97 million MT for India, followed by 1.24 million MT for Bangladesh, our neighbor and second largest producer, but world’s largest exporter. Yet, interest in this fiber is withering away in India due to less interest of people. We need to revive the same. The jute products include rugs, carpets, footwear, wine bottle bags, carry bags, hand bags, wall hangings, jewellery, baskets, coasters, lamp shades, decorative articles and show pieces. Slowly jute is losing market despite the fact that it is reusable, eco-friendly and bio degradable. 92% Jute is used for packaging which is under regulation which says all of food grain has to be packaged in jute bags only. Only balance 8% used for other purposes. However, demand for jute is on a downward trend because of cost competitiveness of mass production from synthetic fibres. Moreover, there are fluctuations in Government Demand for packaging, according to media reports. But, Government of India is keen to develop the sector and has hiked the MSP. The Cabinet Committee on Economic Affairs in March 2024 approved ₹285/quintal hike in the minimum support price (MSP) for raw jute to ₹5,335/quintal for the 2024-25 season as against ₹5,050/quintal for the 2023-24. The Government of West Bengal is providing Crop Insurance too, which gives a lot of security to the sector.
To improve the Jute Market, we may take Bangladesh as a reference point here, since they give 3-4 types of subsidy, including 9-10% subsidy for food packing bags. Perhaps, subsidy may be needed to revive Jute demand, in matter other than packaging. And once the desired scale is achieved the subsidy can be withdrawn. But, to work out the needed subsidy, we require detailed research. Last, but not the least, we also need to ensure only ‘Made in India’ Jute is being sold in India. We welcome your thoughts for helping the Industry to grow. Do write to us.
