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.
• 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.