International Journal of Management (IJM)

Volume 11, Issue 2, February 2020, pp. 296–304, Article ID: IJM_11_02_031
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ISSN Print: 0976-6502 and ISSN Online: 0976-6510

© IAEME Publication Scopus Indexed

GREEN MARKETING OF JUTE PRODUCTS- A

STUDY ON ASSAM CO-OPERATIVE JUTE
MILLS LTD, SILGHAT
Bhaskar Saikia
Research Scholar, Department of Commerce, Dibrugarh University, Assam, India

Sondeep Dey
Research Scholar, Department of Commerce, Dibrugarh University, Assam, India

Prashasti Bhattacharjee
Assistant Professor, Nagaon GNDG Commerce College, Assam, India

ABSTRACT
Along with the rising concern to protect the continuously degrading environment,
not only the politicians, governments or the scientists all around the world are
concerned but also the common men have become wary to this situation. Today's
generation is witnessing the slow death of our Mother Earth with poles continuously
melting, forests burning, the ozone layer depleting and the oceans drying. The time
has come for us to adopt smarter and more sustainable methods, which is why the
concept of green marketing has been popularized. Jute, being a green product, is one
of the perfect ways to move forward. India is the world's largest producer of jute in the
world and its warm and humid climate facilitates the proper growth of jute. Assam is
the second largest jute producing state in India. Assam Co-operative Jute Mills Ltd,
being a co-operative is unique of its kind in the country. The paper is an attempt to
highlight the marketing of jute products as well as to find out the challenges faced by
the Assam Co-operative Jute Mills Ltd. For the purpose of carrying out the study, both
primary and secondary data have been used. The data has been collected from the
employees of the organization with the help of a structured schedule.
Key words: green marketing, jute, challenges
Cite this Article: Bhaskar Saikia, Sondeep Dey and Prashasti Bhattacharjee, Green
Marketing of Jute Products- A study on Assam Co-operative Jute Mills Ltd, Silghat,
International Journal of Management (IJM), 11 (2), 2020, pp. 296–304.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2

1. INTRODUCTION
According to the American Marketing Association (AMA), green marketing refers to the
development and marketing of products that are presumed to be environmentally safe, i.e.,

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 Green Marketing of Jute Products- A study on Assam Co-operative Jute Mills Ltd, Silghat

designed to minimise negative effects on the physical environment or to improve its quality.
This term may also be used to describe efforts to produce, promote, package, and reclaim
products in a manner that is sensitive or responsive to ecological concerns. Thus, green
marketing does not merely include producing or marketing environment- friendly products
but it encompasses a broad range of activities like product modification, changes to the
production process, packaging changes, recycling, and responsible waste disposal practices,
using eco-friendly power sources like renewable sources of energy, modifying advertising,
etc. Green marketing is also referred to as Environmental marketing, Eco-marketing or
Sustainable marketing. All these terms are used to point to a single concept and indicate the
growing importance that consumers and marketers attach to the marketing of environment-
friendly products and services. Thus, green marketing implies adopting a holistic marketing
concept wherein the production, marketing, consumption and disposal of products and
services happen in a manner that is less detrimental to the environment.

1.1. Green Products

Products which are manufactured through green technology or green marketing and cause no
or very less environmental hazards are called green products. Green products essentially have
one or more of the following features:
 Products that are originally grown
 Products which are recyclable, reusable or biodegradable.
 Products with natural ingredients.
 Products containing recycled contents or non-toxic chemicals.
 Products that do not harm or pollute the environment.
 Products that have eco-friendly packaging, i.e., reusable, recyclable, refillable
containers, etc.

1.2. Jute – A Green Product

Jute, also called the „golden fibre' is an important natural fibre crop grown mostly in India and
Bangladesh. Raw jute, being 100% biodegradable and recyclable, is considered to be an
environment- friendly crop which helps to maintain balance in the environment. Initially, raw
jute was used as a source of raw material for packaging purposes. But in recent years, it has
emerged as a versatile fibre that is used for a variety of purposes like making sacks, handbags
or shopping bags, carpets, rugs, textiles, furniture, etc. Indian Jute industry is the largest
producer of raw jute and jute products and the second-largest exporter of jute in the world.
The cultivation of jute is mostly clustered around the eastern and northeastern parts of our
country. It is a tropical crop, needs a hot and humid climate with humidity between 60% to
90% and temperature ranging between 25°C and 35°C. Thus, India's climatic condition
provides a suitable ground for growing jute.

1.3. Jute Production in India

The Indian jute industry is very old and predominant in the Eastern part of India. The Indian
jute industry was modernized during the British raj in India. The production of jute fibre in
India is confined to the states of West Bengal, Bihar, Assam, Orissa, Uttar Pradesh, Tripura,
and Meghalaya. The total production of jute in India stood fairly above ten million bales
between 2001-02 and 2003-04. Thus a sort of consistency has been achieved with respect to
jute production. The area under jute cultivation rose sharply from 0.6 million hectare in 1960-
61 to 0.8 million hectares in 1970-71. The significant role played by jute in the country's
economy can be accessed from the fact that more than 4 million farm families are involved in

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 Bhaskar Saikia, Sondeep Dey and Prashasti Bhattacharjee

jute farming and the majority of them belong to small and marginal categories. Cultivation of
jute generates employment (seasonal) of more than 10 million man-days per season.

1.4. Jute Production in Assam

Assam is the second largest jute producing state in India. Assam produces a huge amount of
jute. Nagaon, Goalpara, Barpeta, Darrang districts are the main jute producing districts of
Assam. Based on the raw material alone it is estimated that Assam can run about 15 jute mills
in the state of infrastructural facilities, capital, and entrepreneurship. There are few jute mills
in Assam.
In 1970, co-operative jute mill was established at Silghat of Nagaon district in Assam.
This is the only jute mill in the country in Co-operative societies Act and after much struggle,
it was commenced in the year 1971 with the initial investment of 150 lakh. But the mill after
running for about 14 years in rough weather had to close during 1984 for the financial crisis
and other infrastructural problems and remain closed for about 2 years. Again the mill was
reopened on 1st January, 1986 under the terms of Historic Assam Accord with the financial
assistance from the Central Government as well as from the State Government.
Assam in spite of being the second-largest jute producing state in India has not been able
to draw substance from the development and diversification of jute products. About 70% of
the total jute produced in Assam is purchased for processing from outside the state.
Unfortunately, the state's efforts for starting and operating Jute Mills have not been a happy
experience, in spite of having good potential for the same.

2. REVIEW OF LITERATURE
Mohiuddin (2015) conducted a study on, “Green Marketing of Jute and Jute Products: A
Study on Bangladesh”. The main objective of the study is to find out the local sales and
foreign sales as well as to find out the production capacity and efficiency. The study found
that the sector have to face both opportunities and challenges. The sector has inherent
weaknesses but it has also demonstrated strengths.
Ghosh (2016) conducted a study on, “A study of Birla Jute Mill of West Bengal". In this
study, the researcher investigated the growth and development of the jute industry with
special reference to Birlapur Jute Mill., The present status and problems, the industry profile
and workers. The study also analyses the impact of the mill on the surrounding villages and
the socio-economic structure of villages is made. It was found that cough, expectoration,
breathlessness, headache and nasal blockage are some major problems which were faced by
the workers during their work.
Islam and Xiaoying (2016) conducted a study on, "Customer's Perception towards Buying
Eco-Friendly Diversified Jute Products: An Empirical Investigation in Dhaka City,
Bangladesh". The main objective of the study is to explore the perceptions of customers in
purchasing decisions of eco-friendly Jute diversified products. The different types of Eco-
friendly jute products are like shopping bags, laundry bags, shoulder bags, purses, school
bags, floor mats, seminar bags, and decorative items, etc are available in the study area. It was
found from the study that the customers have positive attitudes to jute diversified products but
necessary initiatives should be taken by the producer to make customer satisfaction.
Sharma and Tiwari (2017) conducted a study on, "A Study on Usage of Eco-Friendly Jute
Carry Bags and Its Export Potential". The main objective of the study is to know the
perception of different people with respect to using different types of carrying bags. The study
analyzed the Future prospects of jute and its export potentiality. The researcher used Trend
analysis, Percentage Analysis and ANOVA for analysis of data.

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 Green Marketing of Jute Products- A study on Assam Co-operative Jute Mills Ltd, Silghat

Kalita & Bhuyan (2018) conducted a study on, "An Analysis of the Marketing Practices of
Jute Farmers in Assam". In this study, an attempt has been made to analyze the contemporary
raw Jute marketing scenario of Assam. It was noticed that the primary market plays a major
role in the Jute marketing structure under the study area. It was found from the study that
distance to the nearest market, time of sale and the landholding status of the growers have a
significant association with the marketing practices as well as a choice of channel selection.

3. OBJECTIVES OF THE STUDY

 To identify the Jute products produced by the Assam Co-operative Jute Mills Ltd.,
Silghat.
 To determine whether eco-friendly techniques are adopted in the production process.
 To identify the challenges faced by the Assam Co-operative Jute Mills Ltd. in the
marketing of jute products.

4. RESEARCH METHODOLOGY
4.1. Nature of Data
For the purpose of carrying out the study, both primary and secondary data have been used.

4.2. Source of Data

The primary data have been collected from the officials of various departments of the industry
with the help of a structured schedule. The various departments consist of the Jute
Department, Production Department, Finance and Accounts Department and SQC Branch of
the industry. Secondary data have been collected from the company's website, social media
and from various books, literature, e-journals, articles, websites, and the internet as well.

4.3. Sampling Technique

The study by its nature has been considered as descriptive as well as exploratory. The scope
of the study is limited to the Assam Co-operative jute mill only. As the research is based on
the particular jute industry, the universe becomes the sample itself. For the purpose of
analysis of data, simple arithmetic tools have been used.

5. ANALYSIS AND FINDINGS

5.1. Manufacturing of Jute of Assam Co-Operative Jute Mill
Jute Processing in Jute Mill

Jute processing in Pilling or

jute mill Selection Softening conditioning Carding

Drawing and
Spinning Winding Dressing Weaving
Doubling

Calendering:
Damming 1. Hessian: a)Lapping
2. Sacking: a) Cutting Packing

Figure 1 Flowchart showing the process of jute products

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 Bhaskar Saikia, Sondeep Dey and Prashasti Bhattacharjee

5.2. Jute Products Produced In Assam Co-Operative Jute Mill Ltd., Silghat
The jute products are produced in Assam Co-operative Jute Mill ltd. are classified as follows:
Hessian Cloth: Hessian cloth is used for a wide range of applications and is exported all over
the world both in cloth form and in the form of bags. Hessian is often used to make sacks and
bags to ship goods such as coffee beans and tea; these contrivances are known as gunny sacks.
It is breathable and thus resists condensation and associated spoilage of contents.
Hessian is also often used for the transportation of unprocessed dry tobacco. This material
is used for much the same reasons as it would be used for coffee. Hessian sacks in the tobacco
industry hold up to 200 kg (440lb) of tobacco, and due to hessian's toughness, a hessian sack
can have a useful life of up to three years.
Sacking cloths: Sacking cloth is known as heavy goods, made from lower grades of jute
fibres. The sacking cloth is used for jute bags to pack food grains, sugar, and other food items,
etc.
Canvas: Canvas is the finest jute product, closely woven with the best grades of fibre. Jute
canvas is widely used in the protection of weather.
Bags: Shopping bags are made from hessian or sacking cloths with handles, stripes, chains in
different shapes and dimensions.
Decorative items: Several decorative items like toys, wall hanging, paper, decorative bags,
table lamps, furniture, and many more are made from jute fabrics. These are many other jute
products like jute chairs, stools, and tables, jute beds, jute sofa sets, jute room dividers, etc.
are produced in jute mill of Assam.
Sale twine: Twine is a light string or strong thread composed of two or more small strands or
yarns twisted, and then twisted together. More generally, the term can be applied to a cord.

Some other Products of Assam Co-operative Jute Mill Ltd. :

 B.Twill Bag (50 kg. Capacity) for packing food grains
 B.Twill Bag (95 kg. Capacity) for packing food grains
(B.twill bag consist of one blue line in each bag)

 A.Twill Bag (100 kg. Capacity) for packing sugar

(A twill bag consist of three parallel blue lines in each bag )

 Double Warp Flour (DWF) Bag

 Double Warp Tarpaulin Cloth ( DWT) (Odorless)
 Hessian Cloth
 Jute Matting of different colour (Width 36 inch & 48 inches)
 M.F.Yarn
 Bleached, Dyed and Laminated cloth for making diversified products.

5.3. The scenario of Raw Jute production in Assam

Assam produces a huge amount of Jute. Assam alone produces 1.6 million bales of Jute.
Nagaon, Goalpara, Barpeta and Darrang districts are the main jute producing districts of
Assam.
The production of raw jute during the last 8 years are presented in Table 1.1

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 Green Marketing of Jute Products- A study on Assam Co-operative Jute Mills Ltd, Silghat

Table 1 Production of raw jute for the last 8 years in Assam

Years Production (in ‘000 Bales)
2010-11 651
2011-12 639
2012-13 583
2013-14 747
2014-15 793
2015-16 894
2016-17 825
2017-18 838
Source: Price policy for Jute 2018-19, Department of Agriculture. Ministry of Agriculture
From the above table, 1 fluctuating trend is observed in the state in terms of production.
Different factors such as rainfall, previous year price, price expectation, the profitability of the
competing crops, availability of labour etc., mainly affect the volume of production.

5.4. Sources of raw jute

Table 2 Sources of raw jute for manufacturing products
Place Percentage
Within Assam (Local and Nearby areas) 100%
Outside Assam 0%
Total 100%
Source: Field survey
It was evident from table 2 that raw materials i.e the raw jute is collected from local and
nearby areas for manufacturing jute products. Assam produces sufficient amount of Jute. So,
there is no need to buy raw jute from outside Assam.

5.5. Distribution of Jute Products

Table 3 Supply of jute products
Place Percentage
Local and nearby area 10%
Entire Assam 25%
Outside Assam 65%
Source: Field survey
It reveals from Table 1.3 that the maximum portion (65%) of the jute products were
supplied to Outside Assam and a little portion of jute products are remain in the state. So it
reflects that the demand for jute products is higher in the other States of India than that of
Assam. The jute products are mainly supplied to other states like Punjab, Haryana, Uttar
Pradesh, Bihar etc.

5.6. Problems related to production

Table 4 Basic problems of Assam Co-operative Jute Mill
Basis Ranks
Capital Shortage 1
Lack of Modern Equipment 2
Lack of Skilled Workers 5
Scarcity of raw material 3
The high cost of raw material 4
Source: Field survey

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 Bhaskar Saikia, Sondeep Dey and Prashasti Bhattacharjee

It was revealed from the table 1.4 that among all the problems faced by the industry in
production, Capital shortage ranked as first followed by lack of modern equipment ranked as
second by the respondent. Lack of skilled labour got the lowest rank as they provide
periodical training facilities to the new as well as to the existing workers.

5.7. Turnover of Assam Co-operative Jute Mill Ltd

The turnover of Assam Co-operative Jute Mills during the last eight years is presented in
Table 5

Table 5 The turnover generated by the mill during the last 8 years
Financial Year Turnover ( in rupees)
2010-11 33,24,14,347
2011-12 31,69,18,447
2012-13 36,68,91,088
2013-14 38,11,42,000
2014-15 45,10,54,000
2015-16 42,44,15,000
2016-17 52,04,46,000
2017-18 58,06,00,285
Source: Company’s official Website
It was revealed from the table 5 that the turnover of the mill during the last eight years
fluctuating. In the year 2015-16, the turnover of the mill goes down. After that from 2015-16
onwards, the mill's performance seems to be good as the turnover getting increases gradually.
Some factors like less demand and monsoon failure affect the turnover to some extent.

5.8. Challenges faced in the marketing of Jute products

More or less every organization or industry has to face difficulties in marketing their products.
In marketing problems of jute products, various factors are included such as Decrease in
demand, Fewer sales due to high cost, Not finding market segment, lack of proper distribution
channels, lack of awareness among customers etc. The marketing problems faced by the jute
mill are presented in table 6

Table 6 Challenges faced by Assam Co-operative Jute Mills in Marketing of jute products
Problems Ranks
Decrease in demand 1
Fewer sales due to the high cost 4
Not finding the market segment 2
Lack of proper distribution channels 5
Lack of awareness among customers 3
Fraudulent practice 6
Source: Field Survey

From the table 6 it was found that among all the problems Decrease in demand ranked as
first followed by not finding market segment ranked as second, lack of awareness among
customers ranked as third, fewer sales due to high cost raked as fourth, lack of proper
marketing channels ranked as fifth and fraudulent practices of the customer ranked as last by
the Assam Co-operative Jute Mill Ltd. Silghat.

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 Green Marketing of Jute Products- A study on Assam Co-operative Jute Mills Ltd, Silghat

The major findings after going through the above analysis are:
 The products produced in the Assam Co-operative Jute Mills are recyclable, reusable
and biodegradable with natural ingredients.
 It is found that eco-friendly techniques are adopted in the production process as in the
whole production process they did not use any toxic chemicals which are harmful to
the environment.
 The production of raw jute in Assam has gradually increased in the last few years. At
present Assam is the second-largest Jute producing state in India.
 Assam Co-operative jute mill purchases the entire raw material from local and nearby
areas and from some selected districts of Assam.
 The capital shortage is the main problem faced by the jute mill in the production
process.
 The turnover of the jute mill seems to be fluctuating. But during the last two years, the
turnover has increased and this is good for the financial health of the industry.
 Among the various problems faced in marketing of jute products, decrease in demand
is the topmost problem faced by the Assam Co-operative Jute Mill.

6. CONCLUSION
Green marketing has still a long way to go. Though India contributes more than 50% of its
total jute production to the global market, use of jute products is still at its infancy stage.
People prefer to use the cheaper and more easily available polythene bags which are very
harmful to the environment. With the threat of global warming and environmental degradation
rapidly rising day after day, it is high time to select green marketing globally. Adoption of
green marketing at first may seem to be a tough task but it will be beneficial for all in the long
run. Jute, being a 100% biodegradable product has a wide scope in this regard. Use of jute
products should be popularised by making the consumers aware about the benefits of jute
products. Both the consumers and marketers of jute products have a role to play here. As
consumers of the 21st century, people must be aware of the ever increasing pollution and how
the use of green products like jute helps in maintaining a proper balance in the environment.
As marketers, it is their responsibility to make the consumers understand the need for use of
jute products and how the use of non-green products proves to be dangerous to the
environment in the long run. Business organisations who are committed to protecting the
environment from further degradation should not involve in producing products that are
harmful to the environment and should adopt eco-friendly techniques in production process.
In the present study, it was found that the Assam Co-operative Jute Mills Ltd., Silghat
employs eco-friendly methods in processing and production of jute products. Production of
jute products has been rising consistently from the last 5 years but these are mainly used for
industrial or commercial purpose rather than for individual consumers. Further, while
marketing jute products, there are many challenges faced by the Assam Co-operative Jute
Mills Ltd., decrease in demand of jute products being the most important challenge, followed
by lack of proper market segment and lack of consumer awareness. This can be solved by
encouraging people to shift to green products and educating them about the dangerous affects
of using non-green products.

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 Bhaskar Saikia, Sondeep Dey and Prashasti Bhattacharjee

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