Indian Jute Industry

The jute industry occupies an important place in the Indian economy. Providing direct employment to about 0.26 million
workers and around 4.0 million workers indirectly in the allied sectors, Indian jute industry is an integral part of the Indian
Textile Industry. It is a very old industry, predominant in the eastern part of India. The Government has included the Jute
Sector for special attention in its National Common Minimum Programme.

Jute Technology Mission

The Government of India has started the "Jute Technology Mission" keeping in view the growing contribution of the industry
to the economy. This will benefit jute growers, the workers engaged in the sector, jute entrepreneurs and others employed in
related activities. It will play a vital role in modernizing the jute industry and help the country to reap the benefits of enhanced
levels of jute diversification.

Jute Mills
Jute mills comprising the industry are located in West Bengal (the maximum number of mills is here), Andhra Pradesh,
Assam, Orissa, Uttar Pradesh, Bihar, Tripura and Chhattisgarh. India has around 78 jute mills and the eastern state of West
Bengal alone has around 61 jute mills. The central government owns 6 jute mills, the state government 4, 2 jute mills are
under cooperatives, and 64 jute mills are under private ownerships.

Earnings
This industry today accounts for a turnover of Rs 6,500 crore annually, contributing to exports to the tune of nearly Rs.1000
crore. In the financial year 2006-07 (April-September) exports of total jute products was at 104.3 thousand M.T whose value
was Rs. 583.55 crore.

Organizations
Organizations which control the Indian Jute Industry are as follows:

 National Centre for Jute diversification, Kolkata

 Jute Manufacturers Development Council, Kolkata
 National Jute Manufacturers Corporation
 Jute Corporation of India Ltd., Kolkata
 Birds jute & Exports Ltd.
 Institute of Jute technology, Kolkata
 Indian Jute Industries Research Association, Kolkata

Acts and Rules

The various Acts and Rules which govern the Indian Jute Industry are as follows:

 Jute & Jute Textiles Control Order, 2000

 Jute Packaging Materials (Compulsory use in Packing Commodities), Act, 1987
 Jute Manufactures Cess Act, 1983
 Jute Manufactures Development Council Act, 1983

Advantages of Indian Jute Industry

 Largest production of raw jute in the world

 Largets production of jute finished goods
 Environment friendly packaging material
 Availability of large scale skilled and cheap labor
 Availability of entrepreneurial skills
 Huge export potential of jute products
  Large domestic market
 Flexible textile manufacturing systems

Demerits of Indian Jute Industry

 Imports of cheap and alternative textiles from other Asian countries

 Use of old methods of manufacturing
 Poor supply chain management
 Huge decentralized and unorganized sector
 High production cost

Jute, also called the 'Golden Fiber', is the most useful and versatile fiber gifted to human
being by the nature. Jute is popular for its ability to use in various forms in handicraft
industry. The industry contributes greatly in country's economy and has potential to propel
the economy at least for next few decades. Jute industry alone provides direct employment
to approximately 0.26 million people, and about 4.0 million people are associated indirectly
to the industry. In total, the labour intensive industry engages more than 4.35 million
people into it. Realizing its major contribution and important role in the Indian economy, the
Government has decided to pay special attention to the industry in its National Common
Minimum Programme. Keeping the industry's increasing contribution in consideration, the
Government then started the "Jute Technology Mission" to benefit jute growers, the
workers, jute manufacturers, exporters and others engaged in the sector. The programme
has helped in Industry's modernization and to reap profits from export and other enhanced
level of jute diversification.

A great number of the Indian Jute manufacturers have set up their Mills in the states of
West Bengal, Assam, Andhra Pradesh, Orissa, Uttar Pradesh, Tripura, Bihar and
Chhattisgarh. At present, there are 78 jute mills planted in India out of which 61 are located
alone in eastern region of West Bengal. Among all jute mills, 64 are owned privately by
Indian manufacturers and exporters, 6 of them are owned by central government, the state
government owns 4, and only 2 of the mills are under cooperatives. Jute industry alone
accounts for an annual turnover of Rs 6,500 crore and the value of export of total jute
products is nearly Rs1000 crore. Some organizations have been formed to put a control on
Indian jute industry. These include National Centre for Jute diversification (Kolkata), Jute
Manufacturers Development Council (Kolkata), National Jute Manufacturers Corporation,
Jute Corporation of India Ltd. (Kolkata), Birds jute & Exports Ltd., Institute of Jute
technology (Kolkata), and Indian Jute Industries Research Association (Kolkata).

India is the largest producer of raw jute as well as finished good products. Jute Yarn, Jute
Webbing, Jute Hessian Bags, Jute Hessian Cloth also called Burlap Cloth, Jute Geotextiles
and Soil Savers are the products dominating the export arena. It became possible due to
the availability of cheap and skilled labours in India, and the availability of entrepreneurial
skills too. Some of the major Indian manufacturers and exporters of jute and jute products
are following:

o The East India Jute & Jute Hessian Exchange Ltd 

o National Centre for Jute Diversification 
o The Jute Corporation of India Ltd 
o Gunny Traders Association 
o Calcutta Jute Fabrics Shippers Association 
o Calcutta Laminating Industries 
o Ashim Kar & Industries Pvt. Ltd. 
o A One Jutex International

As a matter of fact, jute industry is one of the biggest industries which Indian economy
greatly relies upon. Apart from having huge export potential, the jute manufacturing
companies cater to the domestic market as well. However, the industry is facing some big
challenges in its growth such as high production cost and poor supply chain management.
With markets and competition going global, India is still practicing the primitive methods of
manufacturing jute products. The products made are costlier and are exported at higher
rates as compared to other Asian countries, especially Bangladesh which is the biggest
threat to Indian Jute Industry. Multi unionism is one of the problems faced by the industry
and engages major concentration of routine management in resolving labour dispute.
Despite being a mother Industry, Indian jute industry has emerged as a huge decentralized
and unorganized sector in the current scenario