Jute– The Golden Fiber

7/29/2019 Jute The Golden Fiber

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Jute-The Golden Fiber


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JUTE

Jute is along, soft, shiny vegetable fiber that can bespun into coarse, strong threads.

It is produced from plants in the genus Corchorus,

family Tiliaceae

It is a natural fibre with golden and silky shine andhence called The Golden Fibre

Jute fiber is 100% bio-degradable and recyclable andthus environmentally friendly.

It is the second most important vegetable fibre aftercotton, in terms of usage, global consumption,

production, and availability.


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Types of Jutes

White jute (Corchorus capsularis)

Tossa jute (Corchorus olitorius)

These two varieties have great commercial valuein the world fiber market and are widely

cultivated in the Ganges Delta (India and

Bangladesh). The White Jute fiber shows whitish

golden luster and the and Tossa Jute fiber shows

reddish golden luster.


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White jute Tossa jute


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CultivationJute needs a plain alluvial soil andstanding water. The suitable climatefor growing jute (warm and wet

climate) is offered by the monsoonclimate during the monsoon season.Temperatures from 20C to 40C andrelative humidity of 70%80% are

favourable for successful cultivation.Jute requires 58 cm of rainfallweekly and more during the sowing

period.
http://en.wikipedia.org/wiki/File:Jute_plant.gif


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Some features of Jute

Jute is 100% bio-degradable & recyclable and thus environment

friendly.

Jute is a natural fibre with golden & silky shine, and hence nicknamedas The Golden Fibre.

Jute is the cheapest vegetable fibre procured from bast of the Juteplant and it falls into the category of bast fibres (other bast fibres areFlax, Hemp, Ramie, etc.).

Jute is the second most important vegetable fibre after cotton. Jutehas high tensile strength, and low extensibility.

Jute is one of the most versatile natural fibres that has been used inraw materials for packaging, textiles, non-textile, and agricultural

sectors.


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Continue

The best varieties of Jute are Bangla Tosha -Corchorus olitorius (Golden shine) and Bangla

White - Corchorus capsularis (Whitish Shine), andMesta or Kenaf (Hibiscus cannabinus) is anotherspecies with fibre similar to Jute with mediumquality.

The best source of Jute in the world is the BengalDelta Plain, which is occupied by Bangladesh and

India.


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INDIAN JUTE INDUSTRY


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INDIAN JUTE INDUSTRY

Size of the Industry India today has around 78 jute mills

Geographical

distribution

Jute mills are located in West Bengal, Andhra Pradesh,

Assam, Odisha, Uttar Pradesh, Bihar, Tripura and

Chhattisgarh

Output per annum

The Indian Jute Industry today accounts for a turnover of Rs

6,500 crore annually, contributing to exports to the tune of

nearly Rs.1000 crore.


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INDIAN JUTE - At a glance


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Source: National Jute Board


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HistoryFrom 17th to 20th century, the jute industry in India was delegated

by the British East India Company which was the first jute trader.

During 20th century, Margaret Donnelly a mill landowner in Dundee

first set up the jute mill in India. In the year 1793 the first

consignment of Jute was exported by East India Company. In the

beginning of year 1830, Dundee spinners have determined spinningof Jute yarn by transfiguring their power driven flax machinery. This

lead to increase in the export and production of raw jute from

Indian sub-continent which was the single supplier of jute. The

major jute growing areas were mainly in Bengal at the Kolkata side.

In 1869, five mills were established with around 950 looms, the

growth was very much fast that by the year 1910, 38 companies

were operating around 30,685 looms, rendering more than a billion

yards of cloth and over 450 million bags.


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In the year 1880, jute industry has acquired almost

the whole of Dundee and Calcutta. Then later in

19th century, the manufacturing of jute has started

in other countries also like in France, America, Italy,Austria, Russia, Belgium and Germany. Most of the

Jute barons had started to quit India, leaving the set

up of jute mills after Independence. Most of themwere taken up by Marwaris businessmen.

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Brief Introduction The Jute industry occupies significant place

in the Indian economy. The Indian JuteIndustry is a very old & predominant in theeastern part of India. The Government ofIndia has included the Jute Industry forspecial attention in its National Common

Minimum Programme. It forms an integralpart of the Indian Textile Industry.

The Indian Jute Industry plays a key role inthe Indian economy, providing directemployment to about 0.26 million workers,and supporting the lives of around 4.0million farm families. Around 0.14 millionpeople are engaged in the tertiary sector,that supports the jute industry. Currently itcontributes to exports about Rs. 1000 crore.


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Continue.

Government of India has included the Jute Production forspecial attention in its National Common MinimumProgramme. For this mission, it has approved a sum ofRs.355.55 crore. And also in the year 2006-07 the approved

allocations for Mini Mission -I and Mini Mission-II under theJTM for the remaining year of X Plan was at Rs.2.46 crore. TheMinistry of Agriculture allocated 9.75 crore subject to thecondition that the Department of Expenditure will find

savings from the existing allocation of Ministry of Agriculture.The remaining year's allocations for Mini Mission-III and MiniMission-IV of the X Plan at Rs.7.95 crore and Rs.30.85 crorerespectively have been approved, which would be fundedfrom the Plan savings of Ministry of Textiles


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Size of the Industry

The India Jute Industry consistitutes total millsfrom central government which owns 6 jutemills, the state government owns 4, 2 are under

cooperatives, and 64 jute mills are under privateownerships. India today has around 78 jute millsand the state of West Bengal alone has around

61 jute mills. Andhra Pradesh has 7 jute mills, 3Utter Pradesh has 3 jute mills and Bihar, Odisha,Assam, Tripura, and Madhya Pradesh has 1 JuteMill each.


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Top leading Companies

National Centre for Jute diversification, KolkataJute Manufacturers Development Council,

Kolkata

National Jute Manufacturers CorporationJute Corporation of India Ltd., Kolkata

Birds jute & Exports Ltd.

Institute of Jute technology, Kolkata

Indian Jute Industries Research Association,

Kolkata


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Major jute products

Hessian cloth

sacking,

scrim,

carpet backing cloth (CBC), andcanvas.


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Diversified jute products

Jute Bags

Jute Carpets

Jute Rugs

Jute Furnishing

Jute Crafts

Jute Apparel

Jute Footwear

Jute Furniture

Jute Stationery

Jute Bags Jute Carpets

Jute Rugs Jute Furnishing


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Jute CraftsJute ApparelJute Footwear

Jute Furniture Jute Stationery Jute shopping bag


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Latest Developments

The Government of India has started the "JuteTechnology Mission" keeping in view the growingcontribution of the Jute industry to Indian Economy.This will benefit jute producers, the workers engaged

in the production, jute entrepreneurs and othersemployed in related activities. It will also play a vitalrole in modernizing the jute industry and help thecountry to reap the benefits with enhanced levels of

jute diversification.Jute mills are majorly located in West Bengal Andhra

Pradesh, Assam, Odisha, Uttar Pradesh, Bihar, Tripuraand Chhattisgarh. India has around 78 Jute Mills


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Continue.

For greater growth and development of the JuteIndustry, Govt. of India launched National Jutepolicy in 2005 with the following objectives:

Achieving a Compound Annual Growth Rate (CAGR)of 15% per annum.

Improving the quality of jute fiber.

Value addition through diversified jute products.Ensuring remunerative prices to the jute farmers.

To enhance the yield per hectare from 2200 kg/hec.

to 2700 kg/hec. in 2010-11.


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jute plants in ajute field

Cutting and

bundling of

matured jute

plants

Washing

process of jute

fibres

Drying of

jute fibre

Jute fibre

marketing

Raw jute

processing for

making juteyarn

Jute yarn

spools, tape,

raw jute and

jute rope

Jute processing cycle


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Top10JuteProducin

gStatesof

India


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LocationofJuteMills


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State-wise production of raw jute including mesta for the period

from 2007-08 to 2011-12


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EXPORT PERFORMANCE

During 2010-11 (April-March) exports of total jutegoods were recorded at 199.3 thousand MT valued atRs. 1363.29 crore as against 110.5 thousand MTvalued at 859.49 crore in the corresponding period offinancial year 2009-10. Export of jute goods during2010-11 has increased by 80.4% in terms of quantityand 58.6% in terms of value. During the current

financial year (up to August,2012) total export of jutegoods stands at 76.1 thousand MT valued at Rs.575.53 crore as against 99.4 thousand MT valued atRs. 644.54 crore in the corresponding period of last

financial year.

D f E f f


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Data of Export performance from 2007-08 to 2011-

12(Apr-Aug)


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Value of export of jute diversified products from India

Im rt ata j t r m


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Import ata o jute rom2007-08 to 2010-11(Apr-Aug)


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WORLD JUTE PROFILE

Source: International Jute Study Group (IJSG)


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Top 10 jute producing countries in 2010

Fi j j t i ti t i f


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Five major jute importing countries from

India

USA

Egypt Belgium

Turkey and

Syria

Fi j j t ti t i t


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Five major jute exporting countries to

India Bangladesh

Tanzania

Brazil

United Kingdom

Germany China


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SWOT analysis of Indian jute

industry


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Strength:Jute is a labour intensive industry, which engages 4.35

million people[7].

Jute industry has lot of potential of providing

employment especially in East Indian region. Theindustry offers employment opportunity to 7,500

persons per year, besides more opportunity lie ahead in

expansion of existing capacity in new mills that are

coming up in SSI and MSI.

Jute is an eco-friendly and biodegradable product.

With the pressure from green movement, it is going to

sustain through consumer's preference.


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Weakness:

Lack of Research & Development (R&D),

farsightedness & forward planning on the part of

government and industry.

The machinery used in jute industry is old andobsolete with age of machinery ranging between 40 -

150 years. They have lost their capacity to produce

quality products and in spite of routine maintenance,

fail to yield standard machine production.

Marketing has been another weak point of jute

industry. It has been maintaining a very slow pace in

coming out of traditional way of marketing.


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Within the country, wage for workers varies

from Rs 50 - Rs 250 per man-day. Government

must take immediate steps in this concern and

formulate need based wage structure for jutesector.

Indian jute has not been able to build brand

image for jute that goes with the quality.


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Opportunity:

In many areas Indian Jute industry is ahead of other jute producingand manufacturing countries viz.

(a) It has learned how to upgrade a lower grade fibre in thebatch mix.

(b) It also leads in diversified value added products.

The Government at the centre and at state has pro-jute mindset.They have plans for taking jute industry to new horizon. This isevident from National Jute Policy 2005 which targets to reachexport Rs 5,000 crores in the 11th fine year plan from presentamount of Rs 1,000 crores.

Brazil is one of the major importers of Indian Jute, and is estimatedto have a market of 25,000 tonnes of food grains, and few of Indianjute bag producers have been awarded zero duty which opens newdoors to other industry producers.

Industry should accomplish Total Quality Management so as to

build quality in the products.


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Threats:One of the major threats faced by Indian juteindustry/producers is from Bangladesh Jute industry, whichis armed with 7% cash subsidy on all items of jute productswithout any string.

Withdrawal of Export Subsidy Assistance (ESA) from 1 April,2007 has been a setback to the export of Indian Juteindustry.

The Department of Food and Public Distribution (DFPD) hasissued orders for packaging paddy and coarse grains in used

gunny bags which is a violation of Jute Packaging MaterialAct, 1987, which is considered as threat by jute industry.

Recent government decision to withdraw 10% import dutyon jute and jute products to nil with effect from January 1,2008, is seen as a threat by the industry.


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Conclusion

The Indian jute industry is having lots of opportunityby its side; It is not only one of the oldest industries ofIndia but also among the major employer of thenation. There are a lot of strengths and also muchopportunity to grab them but it could only be done ifit overcomes its weaknesses and threats. Jute, thegolden fibre, has a potential of reaching the height

where it used to be in the past, but it is only possiblethrough constant efforts by government and a properfollow-up by the industry. After all, converting yourthreats into your opportunities is the success mantra

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Jute– The Golden Fiber