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Decline in Jute Production India

Source: TH

Context: Jute production is projected to decline by 20% this year due to floods in West Bengal and Assam.

 

Jute Industry in India

  1. India produces about 70% of the world’s jute goods.
  2. West Bengal contributes about 73% of this production.
  3. 90% of jute production is consumed locally.

 

Opportunities

  1. Directly employs 0.37 million workers.
  2. Jute exports could reach ₹4,500 crore annually (₹3,000 crore in 2023-24).

 

About the Jute crop 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

 

Jute Production India
Jute Production India

 

Challenges in the Jute Industry:

  1. Declining cultivation area, down by 1.7 lakh hectares between 2013-14 and 2021-22.
  2. Competition from low-cost synthetic alternatives and higher quality jute products from Bangladesh and China.
  3. Over 80% of raw jute is of poor quality.
  4. Lack of modernization and outdated mills needing technological upgrades.
  5. Insufficient raw material supply despite government efforts.
  6. Decrease in demand due to the availability of alternative fibres like Mesta.
  7. Frequent strikes and labour issues, especially in West Bengal.
  8. Infrastructure issues like power supply and transportation hinder sustainability.

 

Existing Initiatives:

  1. National Jute Board (NJB) and National Jute Development Programme for Jute Development.
  2. Production Linked Incentive (PLI) scheme and Jute Corporation of India (JCI) for jute promotion.
  3. Jute Packaging Materials Act for mandatory jute use.
  4. Additional initiatives include the Jute Mark Logo and Jute ICARE Scheme.
  5. Drafting Jute Technology Mission 2.0
  6. Golden Fibre Revolution and Technology Mission: It aims to enhance jute production in India.
  7. 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.
  8. Jute Geo-Textiles (JGT) is promoted under the Technical Textiles Mission, offering diverse applications in civil engineering and erosion control.
  9. Jute SMART, an e-government initiative, enhances transparency in the jute sector by providing a platform for government procurement of sacking.
  10. Jute Mark Logo was launched (2022) for branding and positioning of Indian Jute globally.

 

Measures Needed:

  1. Upgrade machinery urgently to benefit both mill owners and consumers.
  2. Facilitate easy loan availability for industry upgrades and address sick mills.
  3. Ensure a consistent supply of raw materials, power, and labour; improve labour laws and skills.
  4. Promote foreign investment to boost competitiveness.
  5. Implement automation to enhance productivity and reduce costs.
  6. Encourage large-scale production for economies of scale and lower costs.
  7. Support research and development.
  8. Reassess fibre neutrality and explore trade agreement opportunities.

 

Conclusion

Atmanirbharta’ will not be possible if the government fails those sectors that are already self-sufficient and capable of dominating the global market. With focused interventions in this sector, we might enhance its performance in terms of more investment, employment generation and export earnings.

Initiatives of government like the Amended Technology Upgradation Fund Scheme (ATUFS), Scheme for Integrated Textile Parks (SITP) etc. are timely interventions in this sense.

 

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