JUTE

PRODUCTS
Group 6
INTRODUCTION
Jute is a long, soft, shiny vegetable fiber that can be spun into coarse,
strong threads
One of the most affordable natural fibers and it is second only to cotton in
amount produced and variety of uses of vegetable fibers
Jute fibers are composed primarily of the plant materials cellulose and lignin
Cultivation is dependent on the climate, season, and soil
Conditions necessary for cultivation
Needs a plain alluvial soil and standing water
Warm and wet climate is required hence best during the monsoon season
Temperatures from 20C to 40C
Relative humidity of 70%80% are favourable for successful cultivation
Jute requires 58cm of rainfall weekly, and more during the sowing time
Soft water is necessary for the jute production.
HISTORY OF JUTE
PRODUCTION
For centuries, jute has been an integral part of the culture of East Bengal, in the entire southwest of
Bangladesh
Since the seventeenth century the British started trading in jute
During the reign of the British Empire jute was also used in the military
British jute barons grew rich processing jute and selling manufactured products made from jute
British East India Company set up many jute mills in Bengal and by 1895 jute industries in Bengal
overtook the Scottish jute trade.
Many Scots emigrated to Bengal to set up jute factories
More than a billion jute sandbags were exported from Bengal to the trenches during World War I and
also exported to the United States southern region to bag cotton
It was used in the fishing, construction, art and the arms industry
The industry boomed throughout the eighteenth and nineteenth centuries
This trade had largely ceased by about 1970 due to the emergence of synthetic fibers
In the 21st century, jute again rose to be an important crop for export around the world in contrast
to synthetic fibre, mainly from Bangladesh.
 JUTE PRODUCTION ACROSS
THE GLOBE
Country Production of Jute Production of Jute
Production of Jute (%)
(Tonnes) (%)
19,60,380
India 54.71% 60.00%
15,23,315
Bangladesh 42.51% 50.00%
43,500
Republic of China 1.21%
40.00%
18,930
Uzbekistan 0.53%
30.00%
Nepal 14,418 0.40%
8,304 20.00%
Vietnam 0.23%
2,508 10.00%
Myanmar 0.07%
2,298
Zimbabwe 0.06% 0.00%
2,184
Thailand 0.06%
2,100
Egypt 0.06%

World 35,83,235
JUTE PRODUCTION ACROSS
THE GLOBE
JUTE PRODUCTION IN INDIA
West Bengal has the largest concentration of
jute industry - over 84 per cent of jute goods
production of India comes from West Bengal
Andhra Pradesh is a distant second
producing only 10 per cent of the Indian jute
goods
Jute mills are also installed in states- Uttar
Pradesh, Bihar, Andhra Pradesh
STRENGTHS OF INDIAN JUTE
INDUSTRY
Huge production capacity
Environment friendly packaging material
Efficient raw material manufacturing capacity
Large pool of skilled and cheap labour
Entrepreneurial skills
Huge export potential
Large domestic market
Very low import content
Flexible textile manufacturing systems
 PRODUCTION VS EXPORTS
PRODUCTION EXPORTS
1950 1960 1970 1980 1990 1996 1997 1998 1999 Year 1960- 61 1970- 711980- 811990- 911995- 96
Year
-51 -61 -71 -81 -91 -97 -98 -99 -00 Export

}
Quantity in
thousand 790 560 660 220 233.1 quantity
Production tonnes decreased
in thousand 1,07 1,06 1,39 1,43 1,40 1,67 1,58 1,59 over the
837
tonnes (In 1 0 2 0 1 8 7 1 Value in Rs. years
India) 135 190 330 298 621
crore Value increase
due to
inflation

Production in thousand tonnes (In India) Quantity in thousand tonnes

1800 900
1600 800
1400
700
1200
600
1000
800 500
600 400
400 300
200
200
0
100
0
1960- 61 1970- 71 1980- 81 1990- 91 1995- 96
PROBLEMS OF INDIAN JUTE
INDUSTRY
Most of the jute-producing areas went to Bangladesh resulting in acute shortage of raw
jute
Most of our customers could not get our jute products during World War II - as a result of
which several countries developed many substitutes to jute
Even today, our jute industry has to face a very tough competition from synthetic
packing materials of the advanced countries of Europe and North America
Use of outdated manufacturing technology.
The newly established mills and improved machines in Bangladesh are able to produce
better quality goods and have an edge over the Indian jute products in the international
markets.
Poor supply chain management

Highly unorganized and decentralized sector

The overall demand for jute products is gradually decreasing in the international market.

High production cost

CAUSES OF DECLINE OF
JUTE INDUSTRY
Competition from Substitutes
Use of other substitutes like bags made of sisal, hem, paper, cotton and synthetics are gradually
encroaching upon the market of jute
a whole range of rival packaging materials have been introduced like paper and synthetics offer
stiff competition to jute goods
Labour Problem
Continuous labour agitation on various issues like demands to raise wages, provide dearness
allowance and perks, growing corruption of mill management and authority, have paralysed the
industry
Dependency on the Export Market
Below factors negatively influenced the world import demand for jute goods
technological developments (e.g. emergence of paper sack, and bulk handling of commodities)
changes in consumer preference (e.g. retail packaging of groceries)
the development of jute processing industries in several importing countries
the challenge from synthetic substitutes
recessionary conditions in the industrialized world
CAUSES OF DECLINE OF
JUTE INDUSTRY
Inefficient Management
Lack of management skills and proper training of office personnel
unholy alliance between mill owners, management, brokers and trade union leaders
that jointly paralyzes the everyday operations of mills
High Prices of Jute Goods
use of obsolete machinery in the inefficient and uneconomic units
heavy export duties imposed by government

Lack of Modernization of Plant and Machinery

use the 100 year old technology and most of the operators are not trained on
modern methods
workers are actively against full-fledged modernization as it might lead to a heavy
cut in employment opportunities
CAUSES OF DECLINE OF
JUTE INDUSTRY
Insufficient Power Supply
needs greater amount of steady electric supply
problem mainly originates from frequent and massiVe power cuts, without notice

Low Productivity of the Labour

labour laws are the biggest obstacles to productivity improvement

Lack of Promotional Activities of Diversified Jute Products

The government and jute promotional bodies fail to highlight the jute diversified
products
the diversified products are lacking in proper promotional drive, at present

Cost of Production
raw materials and labour constitute bulk of the operating expenses and costs on
account of both are rising
ON-GOING SCHEMES FOR
DIVERSIFICATION OF JUTE
INDUSTRY
A pilot project Jute-ICARE (Jute Improved Cultivation and Advanced Retting Exercise) to
improve income of farmers through both increase in yield and improvement in quality of
fibres
Establishment of Common Facility Centres (CFCs): Training programme will be organised in
each CFC and services of entrepreneur dealing with production, export will be availed for a
market study, design development, training and marketing
A Jute Design Cell for development of Jute Shopping Bags and Lifestyle Accessories
Schemes to Support supply chain of JDPs
Export Market Development Assistance (EMDA) Scheme for JDPs: reimburse a part of the
travel expenditure and stall rent including decoration for foreign participation by the small
players of the country.
Workers Welfare Scheme - Sanitation facilities for Mill Sector
Scheme to provide Incentives to successful girls students of Jute Mill workers
Incentive Scheme for Acquisition of Plant and Machinery to facilitate modernization in
existing and new jute mills and upgradation of technology
ON-GOING SCHEMES FOR
DIVERSIFICATION OF JUTE
INDUSTRY
Training & Design development to develop skilled artisans
R&D Activities for new products and process of jute
Promotion of Jute Geo-Textiles (JGT) for use of JGT in Civil Engineering
applications like slope stabilization management, rural roads construction,
river bank protection
Focused Marketing Initiatives for market promotion of JDPs in abroad to fetch
more shares in the export markets
International Events Abroad like Asia America Whole Sale Show in Miami, Hong Kong
Mega Show (Part-II), Luster Fair in USA
International Events in India like IITF, New Delhi
Business Delegation abroad like Participation in Geotechnical Conference JGT,
Participation in ITMA, Milan,Italy