Feedback/ Help/ Queries



Forgot password?Create Username

Subscribe now!

Jute Industry

Jute Industry and Exports

The jute industry is among the oldest and most prominent industries in India. The major jute-producing states in India are West Bengal, Assam, Bihar, Orissa, and Andhra Pradesh. However, the Indian jute industry mainly depends on West Bengal due to the higher number of mills. The industry employs about 3.5 lakh workers, which include workers dependent on forwarding and backward linkages of the jute industry. The average land area under raw Jute & Mesta cultivation stands at 800,000 hectares.
The Jute industry occupies an important place in the national economy of India. Jute, the golden fiber, meets all the standards for ‘safe’ packaging because of being a natural, renewable, biodegradable, and eco-friendly product. The jute industry in India produces different types of jute products such as hessian or burlap (plain-woven fabric), sacking (loosely woven cloth), food-grade jute cloth, yarn, carpet backing cloth, blanket, decorative fabrics, floor coverings, and shopping bags. As of 1st March 2021, the number of spindles installed in the jute industry stood at 6,08,594.
As per an April 2018 study published by the Ministry of Textiles, India is the leading jute goods-producing country globally, accounting for about 70% of estimated world production. Most of the Jute is consumed domestically due to its vast domestic market demand, with an average domestic consumption of 90% of total production. From 2022-23 (Upto July 2022), Jute goods production stood at 384.1 lakh tonnes, and from 2021-22 Jute goods production was at 1,080 lakhs tonnes.
The exports of Indian jute and jute products have increased over the years. Between 2015-16 and 2020-21, the total jute exports grew at a CAGR of 9%. In March and February 2022, India exported jute and floor coverings worth about US$ 49 million each. Several other jute diversified products are exported from India, such as hand & shopping bags, gift articles, decorative fabrics, etc. Among the total shipped jute items, the Jute diversified products (JDP) have the maximum share with 2020-21 exports valued at about US$ 163 million; the hessian and sacking products follow this.
As per the Indian Jute Mills Association (IJMA) statistics, Sacking and Hessian exports were valued at Rs. 502.62 crores (US$ 65 million) and Rs. 363.45 crores (US$ 47 million) in 2021-22, growing from Rs. 428.98 crores (US$ 56 million) and Rs. 267.11 crores (US$ 35 million) of exports recorded in the previous year, respectively. Among the other key jute products exported, yarn exports were valued at Rs. 416.70 crores (US$ 54 million), recording a growth of 23.1% over the previous year. Exports of raw jute were valued at Rs. 449.40 crores (US$ 58 million), significantly higher than Rs. 177.43 crores (US$ 23 million) in the previous year.
India exports jute and jute products mainly to the USA, the UK, Australia, Belgium, Egypt, Germany, Italy, Japan, Saudi Arabia, and Turkey. During 2021-22, the United States was the leading importer of jute manufacture including floor covering, from India, with a value of US$ 118.3 million, a 26.3% increase over the previous year. It was followed by the UK and Germany, with exports valued at US$ 27.8 million and US$ 22.3 million, respectively.
As per National Jute board statistics, the export of all jute goods to the top 20 countries between April 2021-October 2021 stood at 83% of the total exports valued at Rs. 20,214.48 million (US$ 263 million), indicating the significant share of traditional markets. All jute goods exported to the USA were the highest at Rs. 5,163.87 million (US$ 67 million), followed by France and Ghana exports which were valued at Rs. 2,303.13 million (US$ 30 million) and Rs. 1,811.26 million (US$ 24 million), accounting for 26%, 11%, and 9% of the total all jute goods exports, respectively. During the same period, India’s jute diversified products (JDP) exports contribution to the top 20 countries accounted for 95% of the total JDP exports of Rs. 9,316.05 (US$ 121 million). The top five destinations for jute diversified product exports from India are the USA, France, the UK, Netherland, and Spain.
For the modernization and development of the jute industry in India, the National Jute Board has implemented several schemes and initiatives. Some of the schemes meant for the improvement in production are Improved Cultivations and Retting Exercises (ICARE), Jute Diversifications Scheme, Jute Resource-cum production Centre (JRCPC), and Jute Retail Outlet scheme for exposure to products and artisans.
The Market Development & Promotion, Domestic Market Promotion Activities (DMPA), and other publicity and promotion activities and schemes are meant to increase the sales and exports of jute products in India.
Export Market Promotion Activities (EMPA)
Under EMPS, the government implements various activities like international level fairs in India, international fairs abroad, international mega fairs, business delegations/ road shows/ international conferences and seminars, etc.
Market Development & Promotion Scheme (MDPS)
MDPS scheme aims to develop, promote and expand markets for Jute and Jute diversified products within India and abroad. It provides selling, marketing, and promoting platforms/avenues to Jute Artisans, entrepreneurs, women self-help groups, Jute MSMEs, Jute exporters, and Jute millers.
Capital Subsidy for Acquisition of Plants and Machinery (CSAPM) Scheme
CSAPM scheme has been approved by the Ministry of Textiles, Govt. of India and is implemented through National Jute Board (NJB), a statutory body under the Ministry of Textiles, Govt. of India. The objective of the Scheme is to provide financial assistance to the beneficiaries for the purchase of Jute diversified products (JDP) manufacturing machinery. This Scheme is initiated under National Jute Development Program (NJDP) umbrella scheme of NJB during the 15th Finance Commission (2021-26).
National Jute Board
The National Jute Board was framed by the Ministry of Textiles, Government of India, in 2008. The board works towards human resource development for innovation and explorations of new ideas. The activities of the jute board are dissemination of technology, machinery assistance, human resource development through training, etc.
Jute Product Development & Export Promotion Council (JPDEC)
The JPDEPC was created in 1958 to advocate the exports of jute and jute products in India. The activities of the council are to arrange fairs & expositions, analyze the buyer-seller market, and act as a registration authority for exporters.

Source: India Brand Equity Foundation

For Exporter
Frequently Asked Questions
Search ITC-HS Code & Tariff
HS Code
 (Please type 2 to 6 digits only)
Upcoming Events
Latest News