Jute sector

India is the largest producer of jute followed by Bangladesh and China. 
According to the third advance estimates released by the Union ministry of agricultures and Farmers welfare in May 2022, area under jute production has fallen by over 13% in the past decade.

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  • India is the largest producer of jute followed by Bangladesh and China. 
  • According to the third advance estimates released by the Union ministry of agricultures and Farmers welfare in May 2022, area under jute production has fallen by over 13% in the past decade.
  • West Bengal leads in jute cultivation, along with Bihar, Assam, Orissa, Andhra Pradesh, Tripura, and Meghalaya.

Issues in Jute sector of India

  • Lower yields due to high production costs and insufficient capital supply. Average yield per hectare is 1.3 tonnes in India (Bangladesh - 1.62 tones, China- 1.78 tones, Taiwan - 2 tonnes).
  • Competition from synthetic fibres (are cheaper, more durable, and easier to produce than jute).
  • Iinfrastructural constraints related to retting, farm mechanisation, lack of availability of certified seeds and varieties suitable for the country’s agro-climate.
  • Other issues: Poor quality jute due to impacts of climate change, heavy reliance on monsoon, lack of modernization in the sector, low labour productivity, fluctuations in demand etc. 

Government initiatives

  • ISAPM (Incentive scheme for acquisition of plants and machinery) for modernisation of technology in the existing jute industry.
  • JID (jute integrated development)- to provide basic and advanced training cum production centre
  • JRMB (Jute raw material bank)- to supply raw jute materials to MSME units and artisans who are engaged in producing jute.
  • EMDA (Export market development assistance) – to register agri exports for participation in international fairs.
  • Central research institute for jute and allied sectors under ICAR developed a model resting tank with slow moving water.

Way ahead 

  • Diversification: For eg, Jute can be popularized as an alternative to Plastic and innovating new products such as Jute Geo Textiles made through special treatment & weaving processes.  
  • Modernization: This will require collaboration between the government, private sector, and international organisations to provide funding and technical assistance.
  • Sustainability: This includes reducing pesticide use, improving water management, and promoting organic farming practices.
  • Implementing recommendations of Tariff commission report to reduce the losses of the mill owners and prevent their closure.  


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