GS Paper 3
Syllabus: Indian Economy/ Agriculture/ Indian Geography
Source: Sansad
Context: Standing Committee on Labour, Textiles, and Skill Development releases report on Jute Industry Development and Promotion
About the Jute sector in India:
| About Jute Crop | |
| Temperature | Between 25-35°C |
| Rainfall | Around 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, accounting for 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 | West Bengal, Bihar, Odisha, Assam, Andhra Pradesh, Meghalaya, Tripura |
| Approximately 73% of the country’s jute industries are concentrated in West Bengal | |
| Uses | Known as the golden fibre, used in making gunny bags, mats, ropes, yarn, carpets, and other artefacts |
| Production Share | India accounts for 70% of the world’s jute production. It employs over 3 lakh workers. 90% of production is consumed locally |
Major Issues with the Jute Industry in India:
- High Rate of Procurement by Mills: Mills procure raw jute at prices higher than their selling prices post-processing. This is because mills do not directly acquire raw materials from farmers due to logistical challenges. Farmers are often located far from mill locations, requiring mills to deal with multiple farmers. Additionally, the procurement process involves middlemen or traders, adding to costs.
- Supply of raw material: Despite the Government’s efforts to increase the area under Jute, India is not self-sufficient in raw material.
- Obsolete mills and industries: the mills and machinery in the Jute sector are obsolete and need technology upgradation etc.
- Increased competition: Stiff competition with the synthetic industry for similar packaging material, as the synthetic material is much cheaper. Also, Bangladesh mills are competing with China for better quality products.
- Decrease in demand: demand for jute products has decreased due to the easy availability of alternative fibre.
- For instance, the availability of local fibres like Mesta (especially in Andhra Pradesh) etc., have reduced jute demand.
- Strikes and lock-outs: The jute industry in India is mostly concentrated in the eastern part of India (especially West Bengal), there exists a strong labour union which has led to frequent strikes, lockout and other labour issues leading to the closing up of many firms.
- Power supply: Infrastructural bottlenecks, power, transportation, and capital also pose several threats to the sustainability of the Jute industry.
Key Recommendations of the Standing Committee:
- Promote modernization by providing digital moisture meters to improve quality.
- Develop a comprehensive policy for reviving closed mills and establishing new ones.
- Establish schemes, in collaboration with the Ministry of Skill Development and Entrepreneurship, to address the shortage of skilled workers.
Related Initiatives for the Jute Sector:
- Golden Fibre Revolution and Technology Mission: It aims to enhance jute production in India.
- Jute Packaging Materials Act, 1987: Despite competition from synthetic fibres, the Jute Packaging Materials Act, 1987, mandates the use of jute packaging material to support workers and farm families.
- Jute Geo-Textiles (JGT) is promoted under the Technical Textiles Mission, offering diverse applications in civil engineering and erosion control.
- Jute SMART, an e-government initiative, enhances transparency in the jute sector by providing a platform for government procurement of sacking.
- Jute Mark Logo was launched (2022) for branding and positioning of Indian Jute globally
- National Jute Development Programme– An Umbrella Scheme for the development of Jute Industry
- The National Jute Board (NJB) has been constituted as per the National Jute Board Act, 2008
