India Jute Industry

The India jute industry is an integral part of the Indian Textile Industry. India jute industry is an old industry and it is predominant in the eastern part of India. The jute industry in India engages around 2.6 lakh workers directly and around 1.4 lakh workers indirectly in the allied sectors.

Further, India jute industry contributes to the national exchequer from exports and through taxes and levies. The central government owns 6 jute mills, the state government owns 4, 2 are under cooperatives, and 64 jute mills are under private ownerships. India has around 78 jute mills and the eastern state of West Bengal alone has around 61 jute mills. 7 jute mills are located in Andhra Pradesh, 3 each in Utter Pradesh and Bihar and 1 each in Orissa, Assam, Tripura, and Madhya Pradesh. In the financial year 2006-07 (April-September) exports of total jute goods was at 104.3 thousand M.T valued at ` 583.55 crore.

Organizations which control the Jute Industry in India are as follows -

  • Jute Manufacturers Development Council, Kolkata
  • National Centre for Jute diversification, Kolkata
  • Jute Corporation of India Ltd., Kolkata
  • National Jute Manufacturers Corporation
  • Birds jute & Exports Ltd.
  • Indian Jute Industries Research Association, Kolkata
  • Institute of Jute technology, Kolkata
The different Acts and Rules which governs the Jute Industry in India are as follows -

  • Jute Packaging Materials (Compulsory use in Packing Commodities), Act, 1987
  • Jute & Jute Textiles Control Order, 2000
  • Jute Manufactures Development Council Act, 1983
  • Jute Manufactures Cess Act, 1983
Strengths of Indian Jute Industry are as follows -

  • Huge production capacity
  • Environment friendly packaging material
  • Efficient raw material manufacturing capacity
  • Large pool of skilled and cheap labor
  • Entrepreneurial skills
  • Huge export potential
  • Large domestic market
  • Very low import content
  • Flexible textile manufacturing systems
Weaknesses of Indian Jute Industry are as follows -

  • Imports of cheap and alternative textiles from other Asian neighbors
  • Use of outdated manufacturing technology
  • Poor supply chain management
  • Huge unorganized and decentralized sector
  • High production cost