Jute-The Golden Fiber

JUTE
Jute is along, soft, shiny vegetable fiber that can be spun into coarse, strong threads. It is produced from plants in the genus Corchorus, family Tiliaceae It is a natural fibre with golden and silky shine and hence called The Golden Fibre Jute fiber is 100% bio-degradable and recyclable and thus environmentally friendly. It is the second most important vegetable fibre after cotton, in terms of usage, global consumption, production, and availability.

Types of Jutes
White jute (Corchorus capsularis) Tossa jute (Corchorus olitorius) These two varieties have great commercial value in the world fiber market and are widely cultivated in the Ganges Delta (India and Bangladesh). The White Jute fiber shows whitish golden luster and the and Tossa Jute fiber shows reddish golden luster.

White jute

Tossa jute

Cultivation
Jute needs a plain alluvial soil and standing water. The suitable climate for growing jute (warm and wet climate) is offered by the monsoon climate during the monsoon season. Temperatures from 20C to 40C and relative humidity of 70%80% are favourable for successful cultivation. Jute requires 58 cm of rainfall weekly and more during the sowing period.

Some features of Jute

Jute is 100% bio-degradable & recyclable and thus environment friendly. Jute is a natural fibre with golden & silky shine, and hence nicknamed as The Golden Fibre. Jute is the cheapest vegetable fibre procured from bast of the Jute plant and it falls into the category of bast fibres (other bast fibres are Flax, Hemp, Ramie, etc.). Jute is the second most important vegetable fibre after cotton. Jute has high tensile strength, and low extensibility. Jute is one of the most versatile natural fibres that has been used in raw materials for packaging, textiles, non-textile, and agricultural sectors.

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The best varieties of Jute are Bangla Tosha Corchorus olitorius (Golden shine) and Bangla White - Corchorus capsularis (Whitish Shine), and Mesta or Kenaf (Hibiscus cannabinus) is another species with fibre similar to Jute with medium quality.
The best source of Jute in the world is the Bengal Delta Plain, which is occupied by Bangladesh and India.

INDIAN JUTE INDUSTRY

INDIAN JUTE INDUSTRY

Size of the Industry India today has around 78 jute mills

Geographical distribution

Jute mills are located in West Bengal, Andhra Pradesh, Assam, Odisha, Uttar Pradesh, Bihar, Tripura and Chhattisgarh

Output per annum

The Indian Jute Industry today accounts for a turnover of Rs 6,500 crore annually, contributing to exports to the tune of nearly Rs.1000 crore.

INDIAN JUTE - At a glance

Source: National Jute Board

History
From 17th to 20th century, the jute industry in India was delegated by the British East India Company which was the first jute trader. During 20th century, Margaret Donnelly a mill landowner in Dundee first set up the jute mill in India. In the year 1793 the first consignment of Jute was exported by East India Company. In the beginning of year 1830, Dundee spinners have determined spinning of Jute yarn by transfiguring their power driven flax machinery. This lead to increase in the export and production of raw jute from Indian sub-continent which was the single supplier of jute. The major jute growing areas were mainly in Bengal at the Kolkata side. In 1869, five mills were established with around 950 looms, the growth was very much fast that by the year 1910, 38 companies were operating around 30,685 looms, rendering more than a billion yards of cloth and over 450 million bags.

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In the year 1880, jute industry has acquired almost the whole of Dundee and Calcutta. Then later in 19th century, the manufacturing of jute has started in other countries also like in France, America, Italy, Austria, Russia, Belgium and Germany. Most of the Jute barons had started to quit India, leaving the set up of jute mills after Independence. Most of them were taken up by Marwaris businessmen.

Brief Introduction
The Jute industry occupies significant place in the Indian economy. The Indian Jute Industry is a very old & predominant in the eastern part of India. The Government of India has included the Jute Industry for special attention in its National Common Minimum Programme. It forms an integral part of the Indian Textile Industry. The Indian Jute Industry plays a key role in the Indian economy, providing direct employment to about 0.26 million workers, and supporting the lives of around 4.0 million farm families. Around 0.14 million people are engaged in the tertiary sector, that supports the jute industry. Currently it contributes to exports about Rs. 1000 crore.

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Government of India has included the Jute Production for special attention in its National Common Minimum Programme. For this mission, it has approved a sum of Rs.355.55 crore. And also in the year 2006-07 the approved allocations for Mini Mission -I and Mini Mission-II under the JTM for the remaining year of X Plan was at Rs.2.46 crore. The Ministry of Agriculture allocated 9.75 crore subject to the condition that the Department of Expenditure will find savings from the existing allocation of Ministry of Agriculture. The remaining year's allocations for Mini Mission-III and Mini Mission-IV of the X Plan at Rs.7.95 crore and Rs.30.85 crore respectively have been approved, which would be funded from the Plan savings of Ministry of Textiles

Size of the Industry

The India Jute Industry consistitutes total mills from central government which owns 6 jute mills, the state government owns 4, 2 are under cooperatives, and 64 jute mills are under private ownerships. India today has around 78 jute mills and the state of West Bengal alone has around 61 jute mills. Andhra Pradesh has 7 jute mills, 3 Utter Pradesh has 3 jute mills and Bihar, Odisha, Assam, Tripura, and Madhya Pradesh has 1 Jute Mill each.

Top leading Companies

National Centre for Jute diversification, Kolkata Jute Manufacturers Development Council, Kolkata National Jute Manufacturers Corporation Jute Corporation of India Ltd., Kolkata Birds jute & Exports Ltd. Institute of Jute technology, Kolkata Indian Jute Industries Research Association, Kolkata

Major jute products

Hessian cloth sacking, scrim, carpet backing cloth (CBC), and canvas.

Diversified jute products

Jute Bags Jute Carpets Jute Rugs Jute Furnishing Jute Crafts Jute Apparel Jute Footwear Jute Furniture Jute Stationery

Jute Bags

Jute Carpets

Jute Rugs

Jute Furnishing

Jute Footwear

Jute Apparel

Jute Crafts

Jute Furniture

Jute Stationery

Jute shopping bag

Latest Developments
The Government of India has started the "Jute Technology Mission" keeping in view the growing contribution of the Jute industry to Indian Economy. This will benefit jute producers, the workers engaged in the production, jute entrepreneurs and others employed in related activities. It will also play a vital role in modernizing the jute industry and help the country to reap the benefits with enhanced levels of jute diversification. Jute mills are majorly located in West Bengal Andhra Pradesh, Assam, Odisha, Uttar Pradesh, Bihar, Tripura and Chhattisgarh. India has around 78 Jute Mills

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For greater growth and development of the Jute Industry, Govt. of India launched National Jute policy in 2005 with the following objectives: Achieving a Compound Annual Growth Rate (CAGR) of 15% per annum. Improving the quality of jute fiber. Value addition through diversified jute products. Ensuring remunerative prices to the jute farmers. To enhance the yield per hectare from 2200 kg/hec. to 2700 kg/hec. in 2010-11.

jute plants in a jute field Jute yarn spools, tape, raw jute and jute rope Cutting and bundling of matured jute plants

Jute processing cycle

Raw jute processing for making jute yarn

Washing process of jute fibres

Jute fibre marketing

Drying of jute fibre

Top 10 Jute Producing States of India

Location of Jute Mills

State-wise production of raw jute including mesta for the period from 2007-08 to 2011-12

EXPORT PERFORMANCE
During 2010-11 (April-March) exports of total jute goods were recorded at 199.3 thousand MT valued at Rs. 1363.29 crore as against 110.5 thousand MT valued at 859.49 crore in the corresponding period of financial year 2009-10. Export of jute goods during 2010-11 has increased by 80.4% in terms of quantity and 58.6% in terms of value. During the current financial year (up to August,2012) total export of jute goods stands at 76.1 thousand MT valued at Rs. 575.53 crore as against 99.4 thousand MT valued at Rs. 644.54 crore in the corresponding period of last financial year.

Data of Export performance from 2007-08 to 201112(Apr-Aug)

Value of export of jute diversified products from India

Import data of jute from 2007-08 to 2010-11(Apr-Aug)

WORLD JUTE PROFILE

Source: International Jute Study Group (IJSG)

Top 10 jute producing countries in 2010

Five major jute importing countries from India USA Egypt Belgium Turkey and Syria

Five major jute exporting countries to India

Bangladesh Tanzania Brazil United Kingdom Germany China

SWOT analysis of Indian jute industry

Strength:
Jute is a labour intensive industry, which engages 4.35 million people[7]. Jute industry has lot of potential of providing employment especially in East Indian region. The industry offers employment opportunity to 7,500 persons per year, besides more opportunity lie ahead in expansion of existing capacity in new mills that are coming up in SSI and MSI. Jute is an eco-friendly and biodegradable product. With the pressure from green movement, it is going to sustain through consumer's preference.

Weakness:
Lack of Research & Development (R&D), farsightedness & forward planning on the part of government and industry. The machinery used in jute industry is old and obsolete with age of machinery ranging between 40 150 years. They have lost their capacity to produce quality products and in spite of routine maintenance, fail to yield standard machine production. Marketing has been another weak point of jute industry. It has been maintaining a very slow pace in coming out of traditional way of marketing.

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Within the country, wage for workers varies from Rs 50 - Rs 250 per man-day. Government must take immediate steps in this concern and formulate need based wage structure for jute sector. Indian jute has not been able to build brand image for jute that goes with the quality.

Opportunity:
In many areas Indian Jute industry is ahead of other jute producing and manufacturing countries viz. (a) It has learned how to upgrade a lower grade fibre in the batch mix. (b) It also leads in diversified value added products. The Government at the centre and at state has pro-jute mindset. They have plans for taking jute industry to new horizon. This is evident from National Jute Policy 2005 which targets to reach export Rs 5,000 crores in the 11th fine year plan from present amount of Rs 1,000 crores. Brazil is one of the major importers of Indian Jute, and is estimated to have a market of 25,000 tonnes of food grains, and few of Indian jute bag producers have been awarded zero duty which opens new doors to other industry producers. Industry should accomplish Total Quality Management so as to build quality in the products.

Threats:
One of the major threats faced by Indian jute industry/producers is from Bangladesh Jute industry, which is armed with 7% cash subsidy on all items of jute products without any string. Withdrawal of Export Subsidy Assistance (ESA) from 1 April, 2007 has been a setback to the export of Indian Jute industry. The Department of Food and Public Distribution (DFPD) has issued orders for packaging paddy and coarse grains in used gunny bags which is a violation of Jute Packaging Material Act, 1987, which is considered as threat by jute industry. Recent government decision to withdraw 10% import duty on jute and jute products to nil with effect from January 1, 2008, is seen as a threat by the industry.

Conclusion
The Indian jute industry is having lots of opportunity by its side; It is not only one of the oldest industries of India but also among the major employer of the nation. There are a lot of strengths and also much opportunity to grab them but it could only be done if it overcomes its weaknesses and threats. Jute, the golden fibre, has a potential of reaching the height where it used to be in the past, but it is only possible through constant efforts by government and a proper follow-up by the industry. After all, converting your threats into your opportunities is the success mantra for the millennium.