A Study On Indian Jute Industry

Jute, also called the ‘Golden Fiber’, is the most useful and versatile fiber gifted to human being by the nature. Jute is popular for its ability to use in various forms in handicraft industry. The industry contributes greatly in countrys economy and has potential to propel the economy at least for next few decades. Jute industry alone provides direct employment to approximately 0.26 million people, and about 4.0 million people are associated indirectly to the industry. In total, the labour intensive industry engages more than 4.35 million people into it. Realizing its major contribution and important role in the Indian economy, the Government has decided to pay special attention to the industry in its National Common Minimum Programme. Keeping the industrys increasing contribution in consideration, the Government then started the “Jute Technology Mission” to benefit jute growers, the workers, jute manufacturers, exporters and others engaged in the sector. The programme has helped in Industrys modernization and to reap profits from export and other enhanced level of jute diversification.

A great number of the Indian Jute manufacturers have set up their Mills in the states of West Bengal, Assam, Andhra Pradesh, Orissa, Uttar Pradesh, Tripura, Bihar and Chhattisgarh. At present, there are 78 jute mills planted in India out of which 61 are located alone in eastern region of West Bengal. Among all jute mills, 64 are owned privately by Indian manufacturers and exporters, 6 of them are owned by central government, the state government owns 4, and only 2 of the mills are under cooperatives. Jute industry alone accounts for an annual turnover of Rs 6,500 crore and the value of export of total jute products is nearly Rs1000 crore. Some organizations have been formed to put a control on Indian jute industry. These include 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), and Indian Jute Industries Research Association (Kolkata).

India is the largest producer of raw jute as well as finished good products. Jute Yarn, Jute Webbing, Jute Hessian Bags, Jute Hessian Cloth also called Burlap Cloth, Jute Geotextiles and Soil Savers are the products dominating the export arena. It became possible due to the availability of cheap and skilled labours in India, and the availability of entrepreneurial skills too. Some of the major Indian manufacturers and exporters of jute and jute products are following:

The East India Jute & Jute Hessian Exchange Ltd
National Centre for Jute Diversification
The Jute Corporation of India Ltd
Gunny Traders Association
Calcutta Jute Fabrics Shippers Association
Calcutta Laminating Industries
Ashim Kar & Industries Pvt. Ltd.
A One Jutex International

As a matter of fact, jute industry is one of the biggest industries which Indian economy greatly relies upon. Apart from having huge export potential, the jute manufacturing companies cater to the domestic market as well. However, the industry is facing some big challenges in its growth such as high production cost and poor supply chain management. With markets and competition going global, India is still practicing the primitive methods of manufacturing jute products. The products made are costlier and are exported at higher rates as compared to other Asian countries, especially Bangladesh which is the biggest threat to Indian Jute Industry. Multi unionism is one of the problems faced by the industry and engages major concentration of routine management in resolving labour dispute. Despite being a mother Industry, Indian jute industry has emerged as a huge decentralized and unorganized sector in the current scenario.