Indian Jute Industry

Indian Jute Industry
The jute industry occupies an important place in the Indian economy. Providing direct employment to about 0.26 million workers and around 4.0 million workers indirectly in the allied sectors, Indian jute industry is an integral part of the Indian Textile Industry. It is a very old industry, predominant in the eastern part of India. The Government has included the Jute Sector for special attention in its National Common Minimum Programme.

Jute Technology Mission
The Government of India has started the "Jute Technology Mission" keeping in view the growing contribution of the industry to the economy. This will benefit jute growers, the workers engaged in the sector, jute entrepreneurs and others employed in related activities. It will play a vital role in modernizing the jute industry and help the country to reap the benefits of enhanced levels of jute diversification.

Jute Mills
Jute mills comprising the industry are located in West Bengal (the maximum number of mills is here), Andhra Pradesh, Assam, Orissa, Uttar Pradesh, Bihar, Tripura and Chhattisgarh. India has around 78 jute mills and the eastern state of West Bengal alone has around 61 jute mills. The central government owns 6 jute mills, the state government 4, 2 jute mills are under cooperatives, and 64 jute mills are under private ownerships.

Earnings
This industry today accounts for a turnover of Rs 6,500 crore annually, contributing to exports to the tune of nearly Rs.1000 crore. In the financial year 2006-07 (April-September) exports of total jute products was at 104.3 thousand M.T whose value was Rs. 583.55 crore.

Organizations
Organizations which control the Indian Jute Industry are as follows:

• National Centre for Jute diversification, Kolkata
• Jute Manufacturers Development Council, Kolkata
• National Jute Manufacturers Corporation
• Jute Corporation of India Ltd., Kolkata
• Birds jute & Exports Ltd.
• Institute of Jute technology, Kolkata
• Indian Jute Industries Research Association, Kolkata

Acts and Rules
The various Acts and Rules which govern the Indian Jute Industry are as follows:

• Jute & Jute Textiles Control Order, 2000
• Jute Packaging Materials (Compulsory use in Packing Commodities), Act, 1987
• Jute Manufactures Cess Act, 1983
• Jute Manufactures Development Council Act, 1983

Advantages of Indian Jute Industry

• Largest production of raw jute in the world
• Largets production of jute finished goods
• Environment friendly packaging material
• Availability of large scale skilled and cheap labor
• Availability of entrepreneurial skills
• Huge export potential of jute products
• Large domestic market
• Flexible textile manufacturing systems

Demerits of Indian Jute Industry

• Imports of cheap and alternative textiles from other Asian countries
• Use of old methods of manufacturing
• Poor supply chain management
• Huge decentralized and unorganized sector
• High production cost