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REPORT ON DEVELOPMENT AND PROMOTION OF JUTE INDUSTRY

REPORT ON DEVELOPMENT AND PROMOTION OF JUTE INDUSTRY

14-02-2024
  1. The Standing Committee on Labour, Textiles, and Skill Development released a report on the Development and Promotion of the Jute Industry.

  2. The Standing Committee on Labour, Textiles, and Skill Development is a parliamentary panel that aims to:

    1. Improve welfare and social security for unorganized sector workers
    2. Provide social security for organized sector workers
    3. End child labour
    4. Promote skill development
    5. Strengthen employment services 

  3. About India’s Jute Industry:

    1. India is the largest producer of jute followed by Bangladesh and China.
    2. India accounts for 70% of the world’s jute production and employs approximately 3.7 lakh workers directly.
    3. About 90% of the production is consumed within the country, with 73% of jute industries concentrated in West Bengal.
    4. Jute Crop Details:
      • Temperature: Ranges between 25-35°C.
      • Rainfall: Approximately 150-250 cm.
      • Soil Type: Well-drained alluvial soil.
      • Production: India is the largest producer of jute followed by Bangladesh and China.
      • Acreage and Trade: Bangladesh leads in acreage and trade, contributing to three-fourths of global jute exports.
      • Concentration: Mainly in eastern India due to the rich alluvial soil of the Ganga-Brahmaputra delta.
      • Major Producing States: Include West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya, and Tripura.
      • Uses: Known as the golden fibre, used in making gunny bags, mats, ropes, yarn, carpets, and other artefacts.

  4. Challenges and solutions for the Indian jute industry

Challenges

Solutions

High procurement costs due to logistical challenges and middlemen.

Improve infrastructure and transportation facilities to reduce supply chain costs.

Selling price lower than processing cost, reducing profitability.

Encourage mills to buy directly from farmers, eliminating middlemen and reducing costs. Implement regulations to ensure fair pricing for farmers and mills.

Lack of raw material self-sufficiency, leading to imports; Fluctuations in raw jute quality and availability.

Promote high-yielding jute varieties and provide incentives to farmers for increased production; Invest in better storage facilities and processing units to minimize wastage and maintain quality.

Outdated mills and machinery impacting productivity and efficiency; Lack of research and development in the sector.

Implement government and industry-led initiatives to upgrade mills and machinery; Focus on R&D, and Train workers on operating modern equipment.

Synthetic substitutes posing a threat to jute usage in packaging; Bangladeshi and Chinese mills offering better quality and prices.

Develop innovative and value-added jute products like composites, blends, and niche items; Implement stringent quality control measures and invest in advanced processing techniques.

Frequent strikes and lockouts impacting production and stability; Power supply issues and infrastructural bottlenecks hindering growth.

Open dialogue between labour unions, management, and government to address grievances; Skill development and fair wages; Improve power supply, transportation networks, and access to capital for the industry.

 

  1. Key Recommendations of the Standing Committee:

    1. Promote modernization by providing digital moisture meters to improve quality.
    2. Develop a comprehensive policy for reviving closed mills and establishing new ones.
    3. Establish schemes in collaboration with the Ministry of Skill Development and Entrepreneurship to address the shortage of skilled workers.

  2. Related Initiatives for the Jute Sector:

    1. Golden Fibre Revolution and Technology Mission: Aims to enhance jute production in India.
    2. Jute Packaging Materials Act, 1987: Mandates the use of jute packaging material despite competition from synthetic fibres.
    3. Jute Geo-Textiles (JGT): Promoted under the Technical Textiles Mission, offering diverse applications in civil engineering and erosion control.
    4. Jute SMART: An e-government initiative enhancing transparency in the jute sector.
    5. Jute Mark Logo: Launched in 2022 for branding and positioning of Indian jute globally.
    6. National Jute Development Programme: An umbrella scheme for the development of the jute industry.
    7. Establishment of the National Jute Board (NJB) as per the National Jute Board Act, 2008.

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