Neighbour’s envy: India’s jute economy is faltering while Bangladesh’s is flourishing; here’s why

Subject: Geography

Section: Economic

Lack of market, government procurement and diversification, poor infrastructure as well as the sorry state of Indian jute mills is responsible for current scenario.
India is still the largest producer of jute but in terms of acreage, Bangladesh is the largest cultivator.
In West Bengal — the country’s largest jute-producing state, which also has 70 of India’s 93 jute mills — the area under jute has reduced by 0.1 million ha between 2009-10 and 2020-21.
Jute can be highly profitable. Its leaves are sold in markets as a vegetable even before the crop is harvested. The inner stem can be used to manufacture paper while the outer layer produces the fibre.

The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act 1987 (JPMA)

It provides for use of jute packaging material for foodgrains.
Under this Act, the government issues orders from time to time for mandatory use of jute packaging.
Since 2017, the norms provide that 100 per cent of foodgrains and 20 per cent of sugar should only be packed in jute bags.
Due to this, jute sacks account for 75 per cent of the total production of the jute industry.

National Jute Board

It is governed by National Jute Board Act-2008, as framed by the Ministry of Textiles, Govt. of India and enacted by the Parliament on February 12, 2009.
Board engages in research and human resource development programmes to explore new and innovative use of jute with the idea of enabling both the organized as well as the decentralized sector to compete and increase the global share of Indian jute goods consumption.

Government Initiatives for Promoting Jute Industry

Jute Corporation of India (JCI) procures raw jute at Minimum Support Price (MSP), fixed on the basis of recommendation of the commission for Agricultural Cost and Prices (CACP), from jute growers to safeguard their interest.
Incentive Scheme for Acquisition of Plants and Machinery (ISAPM): Launched in 2013, it aims to facilitate modernization in existing and new jute mills and up- gradation of technology in existing jute mills .
Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise): This pilot project launched in 2015 is aimed at addressing the difficulties faced by the jute cultivators by providing them certified seeds at subsidized rates, and by popularizing several newly developed retting technologies under water limiting conditions.
The National Jute Board implements various schemes for market development, workers’ welfare and promotion of diversification and exports.
In order to boost demand in the jute sector, the Government has also imposed anti-dumping duty on import of jute goods from Bangladesh and Nepal.

About Jute

Jut is known as the ‘golden fibre’ , is one of the longest and most used natural fibre for various textile applications.
It thrives in tropical lowland areas with humidity of 60% to 90%. Jute is a rain-fed crop with little need for fertilizer or pesticides.
Retting of Jute is a process in which the tied bundles of jute stalks are immersed in water by which fibres get loosened and separated from the woody stalk.
World’s leading jute producing countries are India , Bangladesh , China and Thailand . India is the world’s largest producer of raw jute and jute goods , contributing to over 50% and 40% respectively of global production.
The cultivation of jute in India is mainly confined to the eastern region of the country . The jute crop is grown in seven states – West Bengal , Assam , Orissa , Bihar , Uttar Pradesh , Tripura and Meghalaya . West Bengal alone accounts for over 50% of the total raw jute production.
To promote and popularize jute diversification work, National Jute Board, Ministry of Textiles, acts as the apex body for promotion of the products in India and abroad.
The first jute mill was established at Rishra (Bengal – now in West Bengal), on the river Hooghly near Calcutta in the year 1855, by Mr. George Aclend. In 1959, the first power driven weaving factory was set up.