Jute industry of India

20 Feb 2024 Jute industry of India

This article covers ‘Daily Current Affairs’ and the topic details of ”Jute industry of India”.This topic is relevant in the “Indian economy and agriculture” section of the UPSC CSE exam.

Why in the News? 

The Fifty-Third Report on the ‘Development and Promotion of Jute Industry’ has been presented by the Standing Committee on Labour, Textiles, and Skill Development.

Key Highlights of the Report:

• Jute Industry Significance:

1. The jute industry holds a crucial position in India’s national economy, particularly in West Bengal, serving as a major industry in the eastern region.
2. Jute, referred to as the ‘golden fibre,’ stands out as a natural, renewable, biodegradable, and eco-friendly material, meeting safe packaging standards.

• Production and Export Data (2022-23):

1. In the fiscal year 2022-23, jute goods production reached 1,246,500 metric tons (MT). Jute goods exports increased by 56% compared to 2019-20, reaching 177,270 MT, accounting for 14% of total production.
2. Factors contributing to export growth also include heightened global demand for eco-friendly products.
3. India imported 121.26 thousand MT of raw jute during the same period, primarily from Bangladesh for value-added product manufacturing.
4. Top export markets for jute goods include the USA, France, Ghana, the UK, the Netherlands, Germany, Belgium, Côte d’Ivoire, Australia, and Spain.

• India’s Global Jute Production Share:

1. India plays a significant role in global jute production, contributing 70% of the world’s output.
2. Approximately 3.7 lakh workers are employed directly in the jute industry, with around 90% of the production meeting domestic demand.
3. West Bengal houses about 73% of jute industries, with 79 out of 108 composite jute mills located in the state.

Significant Challenges Faced by the Jute Industry:

The Jute industry, a vital component of India’s economy, grapples with multifaceted challenges hindering its growth and sustainability. These challenges pose significant hurdles to an industry deeply rooted in the economic fabric of the country.

High Procurement Costs:

Mills face the brunt of exorbitant procurement expenses, acquiring raw jute at prices surpassing their post-processing selling prices. This financial strain is compounded by a convoluted procurement process involving intermediaries or traders, escalating overall costs.

Insufficient Raw Material Supply:

Despite efforts to boost jute cultivation, the industry contends with an inadequate supply of raw materials. This scarcity exacerbates procurement issues and directly impacts the industry’s production capacity, creating a bottleneck in its operational efficiency.

Obsolete Mills and Machinery:

The Jute Industry grapples with outdated mills and machinery, necessitating urgent technological upgrades. This outdated infrastructure hampers efficiency and competitiveness, hindering the industry’s ability to meet evolving market demands.

Fierce Competition from Synthetics:

Jute faces relentless competition from synthetic materials offering more cost-effective packaging solutions. This intense rivalry negatively impacts the demand for jute products, compounded further by alternative fibres like Mesta, further diminishing the market share for jute.

Labour Issues and Infrastructure Hurdles:

Labor-related challenges, particularly in West Bengal, including frequent strikes, lockouts, and disputes, disrupt operations, creating instability. Additionally, infrastructural bottlenecks, such as inadequate power supply, transportation challenges, and limited access to capital, impede the industry’s sustainability efforts, hindering growth and modernisation initiatives.

Recommendations by the standing committee:

• Empowering Through Skill Enhancement: Empower jute workers with comprehensive training programs to refine their expertise. Emphasise skill development in crucial areas like weaving, dyeing, and value-added processes.
• Advancing Technology in the Jute Industry: Encourage investments in cutting-edge machinery to boost productivity and enhance product quality. Foster collaborations with research institutions to drive innovation within the industry.
• Promoting Research and Development: Allocate resources for research endeavours aimed at advancing innovations in the jute sector. Encourage collaborative efforts between industry players and research entities to drive technological progress.
• Elevating Quality Control and Standardization: Strengthen quality control measures to uphold consistent excellence in jute products. Establish and enforce stringent standards for the production of high-quality jute goods.
• Expanding Market Horizons: Explore untapped global markets for jute products. Promote jute-based handicrafts and lifestyle commodities to broaden the industry’s market reach.
• Optimising Raw Material Procurement: Streamline the acquisition of raw jute to minimise costs. Promote initiatives like contract farming and incentivise farmers to increase jute cultivation.
• Creating Awareness for Jute Products: Launch awareness campaigns highlighting the eco-friendly attributes and sustainability of jute. Educate consumers on the benefits of choosing jute products for a greener lifestyle.
• Advocating Pro-Jute Policies: Formulate policies that incentivise jute cultivation and value addition. Extend financial assistance to jute mills for the adoption of cutting-edge technologies, ensuring the industry’s sustainable development.

Government Schemes Related to Jute Industry:

1. Export Market Development Assistance (EMDA) Scheme.
2. Jute Geotextiles (JGT) under the Technical Textiles Mission.
3. Minimum Support Price for Jute through the Jute Corporation of India (JCI).
4. Jute Packaging Materials (Compulsory Use in Packing Commodities) Act 1987.

Prelims practice question

Q1.  Consider the following statements: 

1. Jute is commonly referred to as Golden Fibre
2. The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act 1987 makes it mandatory to use jute packaging material
3. Economic Affairs Committee presented the Fifty-Third Report on the ‘Development and Promotion of Jute Industry’

How many of the above statements are Incorrect

A. Only one

B. Only two

C. All three

D. None

ANSWER: A

Mains practice question

Q1. Explore the impact of climate change on Indian farmers and its consequences for agricultural exports. Discuss the challenges of unpredictable weather patterns and suggest strategies to mitigate these challenges.

Himanshu Mishra

I am a content developer and have done my Post Graduation in Political Science. I have given 2 UPSC mains, 1 IB ACIO interview and have cleared UGC NET JRF too.