JUTE

• Known as golden fibre
• Soft, shiny, and relatively long fibre that has the ability to be spun into strong, coarse threads
• Considered to be one of the most inexpensive and economical plant fibres

SIGNIFICANCE OF JUTE

• Compared to rice, jute requires very little water and fertiliser
• It is largely pest-resistant, and its rapid growth spurt ensures that weeds don’t stand a chance
• Jute is the second most abundant natural fibre in the world
• It has high tensile strength, acoustic and thermal insulation, breathability, low extensibility, ease of blending with both synthetic and natural fibres, and antistatic properties
• Jute can be used: for insulation (replacing glass wool), geotextiles, activated carbon powder, wall coverings, flooring, garments, rugs, ropes, gunny bags, handicrafts, curtains, carpet backings, paper, sandals, carry bags, and furniture

JUTE PRODUCTION IN INDIA

• India is the world’s biggest producer of jute , followed by Bangladesh
• Primarily grown in West Bengal, Odisha, Assam, Meghalaya, Tripura and Andhra Pradesh
• There are about 70 jute mills in the country, of which about 60 are in West Bengal along both the banks of river Hooghly
• Jute production is a labour-intensive industry
• Employs about two lakh workers in the West Bengal alone and 4 lakh workers across the country

WHY IS JUTE INDUSTRY CONCENTRATED IN WEST BENGAL

• Water: Flowing water in abundant quantity is required, which is provided by Hoogly River. Water is also required for Retting, Washing, dyeing etc.
• Transportation: Hooghly River provides cheap transportation for the industry. A dense network of road and railways has also helped in flourishing jute industry in Eastern region.
• Raw material
  • Ganga Brahmaputra delta grows about 90% of India’s jute production India now tops the production of raw jute.
  • Shortage of raw jute due to political differences with Bangladesh led to a relentless campaign to increase production of raw jute by increasing area in Brahmaputra Valley, West Bengal, Tarai and E. Coastal Plains and all regions around Calcutta.
  • New hybrid varieties like JRO – 632, JRO – 753 are being grown, with better outputs.
• Labour
  • large man power is required for jute cultivation, processing, dyeing etc.
  • High density of population in west Bengal, Bihar and Eastern U.P provide cheap labour for industry.
  • 4 million farmers, mostly small and marginal and 2 lakh workers are engaged in jute cultivation and production.
• Coal
  • Raniganj field within 200 KM distance provide coal to the industry.
  • DVC also avails ready power to the industry.
  • Calcutta port serves this region for import of machinery and other material and export of finished material abroad.
  • The riverine nature of the port has facilitated easy mobility of various products.
• Market
  • Rich hinterland of Calcutta and industrial development around it provide a ready market for the jute industry.
  • Development of the sugar industry in neighboring U.P and Bihar also boosted demand for gunny bags. Export other countries through Calcutta port in the vicinity also provided a good market. India is second in the export of jute goods and tops the list in production.
  • Issues an order under jute packaging materials, 1987 under which a mandatory percentage of packaging of sugar (50%) and food grains (60%) in jute bags also helped the industry.
• Capital and banking
  • Big capitalists in and around Calcutta ensure the easy flow of capital in this industry.
  • Agglomeration has also ensured banking and insurance facilities in this region.

WHY IN NEWS NOW?

• Mills are now procuring raw jute at prices higher than what they are selling them at after processing.
• The government has a fixed Minimum Support Price (MSP) for raw jute procurement from farmers, which is ₹4,750 per quintal for the 2022-23 season.
• However, as the executive stated, this reached his mill at ₹7,200 per quintal, that is, ₹700 more than the ₹6,500 per quintal cap for the final product.
• Though the Union government has come up with several schemes to prevent de-hoarding, the executive believes the mechanism requires a certain “systematic regulation”.

WHAT HAPPENED TO SUPPLY

• What made the situation particularly worrisome recently was the occurrence of Cyclone Amphan in May 2020 and the subsequent rains in major jute producing States.
• These events led to lower acreage, which in turn led to lower production and yield compared to previous years.
• Additionally, as the Commission for Agricultural Costs and Prices (CACP) stated in its report, this led to production of a lower quality of jute fibre in 2020-21 as water-logging in large fields resulted in farmers harvesting the crop prematurely.
• Acreage issues were accompanied by hoarding at all levels – right from the farmers to the traders

FUTURE PROSPECTS OF THE JUTE INDUSTRY

The future prospects of the Jute industry, however, is bright due to the following:

• Diversification of jute products
• Environmental awareness
• Ban on polythene and plastic bags
• Increasing use for oil conservation
• Construction of bunds, river embankments, landslide protection
• Along with cotton, jute is also being used for apparel manufacturing

WAY FORWARD

• Diversification of jute products such as clothing items, decorative items, matting of carpet improve durability, packing items, etc. has been done to increase the horizon of Jute Industry.
• Improve quality: Innovative ways of bleaching, dyeing, and finished goods processes the jute industry now provides finished jute products that are softer and have to luster with aesthetic appeal. Today Jute has been defined as eco-friendly natural fiber with utmost versatility ranging from low-value geo-textiles to high-value carpets, decorative, apparel, composites, upholstery furnishings, etc.
• Reduce cost: Efforts in R&D to strengthen the jute industry and implement newer technologies, diversified products, and improved machinery through intensive modernization. These will fetch more profit by reducing cost and has less market competition (synthetic counterpart) due to its eco-friendly property which has good prospects in the coming days.
• Jute cultivation is being expanded. There has been some dispersion, due to increasing demand from the sugar industry in UP and cement industry MP.
• Jute is environment friendly and renewable; hence its use must be encouraged e.g. by making it mandatory to use jute for packaging.
• Govt has issued orders like cement, sugar, fertilizer, have to strictly make use of jute production to packing the materials, Food Corporation of India, oilseeds, and tea sector also have to implement this order.
• National jute Manufactures Corporation has been formed to boost the jute industry.