NATIONALMULTICOMMODITY

EXCHANGEOFINDIALIMITED

ReportonJuteSacking

4thFloorH.K.House,
B/hJivabhaiChambers,AshramRoad,
Ahmedabad,Gujarat380009INDIA
Phone:917940086039Fax:917940086040
Email:contact@nmce.comURL:www.nmce.com

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TableofContents

Introduction..................................................................................................................................... 3
Indian Jute Industry......................................................................................................................... 3
India: Industry Milestones .............................................................................................................. 4
Major Growing Areas ..................................................................................................................... 5
Types of Jute Sacks......................................................................................................................... 5
Benefits of Jute Sacks ..................................................................................................................... 6
Consuming Segments...................................................................................................................... 7
Features of Hydrocarbon Free Jute Bags ........................................................................................ 7
Production and Utilization .............................................................................................................. 8
Trend in Domestic Consumption of Jute Goods............................................................................. 9
Trade Scenario ................................................................................................................................ 9
Market Scenario ............................................................................................................................ 10
Jute Sacking Value Chain ............................................................................................................. 11
Advantages of using Jute Sacks over Polypropylene / Polyethylene ........................................... 12
Jute Sack Prices History................................................................................................................ 13
Development Organizations in the Jute Sector............................................................................. 14
Current Scenario ........................................................................................................................... 17

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Introduction

WhenthejuteindustrystartedinIndia,oneoftheearlierdevelopmentswasthe
manufactureofjutesacks.Thebulkofjutesackproductionisusedforalltypesof
jutebags.Sackingbags,wovenwhollyfromjutefabrics,areavailableasplainand
twillbags.

Jutebags,theothernameforsackingbagsaremainlyusedtopackcement,sugar
and other bulky articles, which are packed in weight range from 50 to 100 kgs.
Thesearetailoredaspercustomersspecificationsintermsofsizeandtomeetthe
everincreasingdemandofjutebagsinthefarmsector,agrobasedindustriesand
cementindustries.

TheJuteTextilesIndustryoccupiesandimportantplaceinthenationaleconomy.
Itisoneofthemajorindustriesintheeasternregion,particularlyinWestBengal.
It supportsnearly4 millionfarmfamilies,besides providingdirect employment
toabout2.6lacindustrialworkers.

The jute industry is laborintensive and contributes about Rs.1,200 crores

annuallytotheexportearnings.Thefollowingtablegivesthestatewiselocation
ofthevariouscompositemillslocatedinIndia.

State
WestBengal
Bihar
U.P.
AndhraPradesh
Assam
Orissa
Tripura
Chattisgarh
Total

NoofMill
60
3
3
7
1
1
1
1
77

Source:www.texmin.nic.in

IndianJuteIndustry

Jute,theGoldenFiberasitiscalled,isaplantthatyieldsafiberusedforsacking
andcordage.Knownastherawmaterialforsackstheworldover,juteistrulyone

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ofthemostversatilefibersgiftedtomanbynaturethatfindsvarioususesinthe
formofHandicrafts.Nexttocotton,juteisthecheapestandmostimportantofall
textilefibers.

JuteisbeingcultivatedinIndiaforcenturies.Thelandmarkinthehistoryofjute
industryinIndiadatesbackto1854whenthefirstjutemillassetupbyGeorge
Auckland at Rishra in Hoogly district of West Bengal. Jute is predominantly a
cropofeasternIndia.

The production process in the jute industry goes through a variety of activities,
whichincludecultivationofrawjute,processingofjutefibers,spinning,weaving,
bleaching, dyeing, finishing and marketing of both raw jute and its finished
products.

CurrentlytheproductionofthefibreinIndiaisaround100lakhbalesandabout
73 jute mills are operating in the country at present. Besides, there are several
small scale industries in the decentralized sector producing handicrafts,
decoratives, twines, pulp & paper from jute and allied fibers and particle board
fromjutestick.

India:IndustryMilestones

Thelargestproducerofrawjuteintheworld.

Thebiggestmanufacturerofjutegoodsintheworld.

Thecapacitytomanufacturethewidestrangeofproducts,tailoredtocustomers
requirements.

Comprehensive and world class research and development facilities in the area
ofjuteagriculture,productdevelopmentandmachinerydesign.

HighlyqualityconsciousemployingmostmodernfacilitiesforTQC.

Exporthistoryofrawjuteandjutemanufacturesdatesbacktoover100years.

Highlydevelopedinfrastructurelikeports,shippingfacilitiesetc.

Avibrantjuteindustryorientedtoprovidemaximumcustomersatisfaction.

Indian Jute Industry has the capacity to produce and meet the International
demandforfoodgradeJutebagsandcloth.

FoodgradeJuteBagsandclothmanufacturedinIndiaareabooninthecontext
ofglobalenvironmentalandecologicalconcern.Indianfoodgradejutebagshave
atwinedgedadvantage:preservationoffoodinthemostnaturalway.

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Jute is a rainy season crop and hence sown from March to May according to
rainfall and type of land, and harvested from June to September depending on
whetherthesowingsareearlyorlate.

MajorGrowingAreas

Jute thrives best in damp heat, and the climatic conditions prevalent in West
BengalinIndiaarewellsuitedforitscultivation.Indianstatesideallysuitablefor
thecultivationofjuteare:

WestBengal
Bihar
Assam
Orissa
UttarPradesh

Mesta, or Kenif, botanically known as Hibiscus Cannabinus, is also grown in

theseareasasatextilefiber.Mestaisacoarser,morebrittlefiber,andisusedby
thejutemillsinadmixturewithjutetoobtaincertaindesiredproperties.

TypesofJuteSacks

Thesizesarecustomfittedaccordingtospecificationsprovidedbythecustomer.
However, there are standard sizes already estimated for specific kinds of
productsastherearequantityrequirementsthatcountbythenumberofsacks.

In high demand today are jute sacks that come in the form of hydrocarbonfree
bags purposely for agrobased products such as sugar, cocoa, coffee, rice,
potato,onions,peanuts,woolandotheragriculturalproducts.
Thistypeofjutesackistreatedwithvegetableoilswhicharenontoxicanddonot
contain compounds that could produce off flavors and tastes when in contact
withediblematerials.

Asidefromeliminatingtheharmfuleffectsofhydrocarbon,theprocessmakesit
freefromanykerosenesmellaswell.
Differentcategoriesofsackingare

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ATwillAdoublewarphemmedtwillbagof112x76.5cmsizeandweighing
1190 gm with strips woven along the length of the bag and used for packing
sugar.
BTwillAdoublewarp hemmedtwillbagof112 x76.5 cmsize andweighing
1020 gm. Capacity to hold 95 kg of food grains. With three blue stripes woven
alongthebagandusedforpackingfoodgrain
LTwill
D.W.FlourForpackingofflour,maizeetc
D.W.Salt
D.W.Nitrates
HeavyCeesForpackingoftobaccoleaves,spicesetc
LightCees
SydneyWoolpacks
AustralianWoolpacks
AustralianCornsacks
NewZealandCornsacks
NewZealandWoolpacks
FineTwillCloth
CementBags

BenefitsofJuteSacks

The strength and durability of jute sacks as well as the safety that the
hydrocarbonfree ones offer, makes them truly dependable sacking material
worththepurchaseofmanufacturersandconsumers.
Sackingisheavy,looselywovenclothinplainortwillweave,weightingfrom15
20 ozs per yard of different widths. Sacking cloth is used for jute bags to pack
foodgrains,sugarandcementetc.inaweightrangefrom50to100kg.

Heavy duty jute bags/sacks are very much popular for packaging agriculture
commodities.

SincejuteharvestedinBangladeshisthestrongestintheworld,jutebagsmadein
Bangladeshlastmanyyears.

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ConsumingSegments

TheJutepackagingMaterialsAct(JPMA)wasenactedin1987andsincethenitis
continuing. Under the current provisions of the JPMA, entire quantities of food
grainsandsugarhavetobecompulsorilypackedinjutesacks.

Sacking bags, specifically used for the purpose of storing agrobased products,
areknownasHydrocarbonfreebagsthathavebeentreatedwithvegetableoils
to destroy the harmful effect of hydrocarbons. Thus sacking bags have great
demandnotjustinthecementindustrybutalsointheagrobasedindustries.

FeaturesofHydrocarbonFreeJuteBags

Safest packaging material for agrobased products, Hydrocarbon free Jute Bags
arebeingincreasinglyusedinplaceofregularjutebags.

HydrocarbonfreebagsareactuallySackingBagsthathavebeenguardedagainst
any contamination of hydrocarbons. Such bags are also free from any kerosene
smellandhencearespecificallyusedforpackingsugar,coffee,cocoa,rice,potato,
onions, peanuts, cotton, wool, etc. These bags are made from jute, treated with
vegetableoil.

Hydrocarbonfreefoodgradebagsaretotallysafeforstoringedibles.Ecofriendly
and biodegradable, these bags are safely processed with vegetable oil.
Manufacturersandexportersensurethattheirbagsmeetinternationalstandards
ofquality.

The ingredients used as batching oils are nontoxic and approved for use in
packagingmaterialsthatcomeincontactwithfoodmaterialsanddonotcontain
compoundsthatcouldproduceoffflavorsorofftastesinfoodmaterialspacked
injutebags.

No undesirable odors or odors untypical of jute are present. No unacceptable

odordevelopsafterartificialageingofthebags.

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ProductionandUtilization

The

basic

jute

products

manufactured

in

jute

mills

are

Hessian Cloths, sacking cloths, Jute Yarn, Carpet Backing Cloths (CBC), Bags,
Twines,D.W.Tarpaulin/P.W.canvas,Shoppingbags,GeotextilesandGaps,Jute
Matsandfloorcoverings,Tobaccosheets,carpetsetc.

AprilMarch
199596
199697
199798
199899
199900
200001
200102
200203
200304
200405
200506
200607
200708
(Apr/Oct)
200708
(Projected)

PRODUCTIONOFJUTEGOODSININDIA
HESSIA
N
413.90
368.70
392.40
344.10
344.50
337.90
275.30
338.30
305.20
310.30
320.00
250.30

IN000M.T.
OTHE
TOTAL
RS
312.30 1,433.00
340.40 1,400.90
401.60 1,678.40
330.30 1,596.20
328.50 1,590.20
327.50 1,624.90
286.20 1,600.80
278.10 1,621.80
281.10 1,571.30
306.70 1,613.10
248.50 1,582.10
228.40 1,356.30

SACKING

CBC

676.30
666.60
864.60
903.30
909.20
952.90
1,034.30
1,000.00
979.30
992.00
1,007.40
874.70

30.50
25.20
19.80
18.50
8.00
6.60
5.00
5.40
4.70
4.10
6.20
2.90

207.50

645.70

2.70

168.20

1,024.10

337.90

952.90

4.60

329.50

1,624.90

(Source:JuteCommissionerofIndia,www.texmin.nic.in)

Thefallintheproductionin200607overthepreviousyearwasduetothestrike
inthejutemillsinWestBengalfromJanuary2007tillMarch2007.

Hessian is a single wrap plain weave jute fabric being manufactured in various
widthsandweighuptoamaximumof500g/m.

A jute sack is woven wholly from lower grades of jute fabrics and is usually
available as plain and twill.The latter is produced by passing the weft threads
over one and under two or more warp threads resulting to a type of textile
patternedwithdiagonallines.Knowninthetradeasheavygoods,jutesackis
looselywoven,weighsfrom12to20ouncesayardandcomesindifferentwidths,

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depending on the kind of goods intended to be packed. Jute sacks are usually
utilizedtopackbulkyarticlesweighing50to100kilograms;morecommonlyare
cement,sugar,wheatandcoal.

TrendinDomesticConsumptionofJuteGoods

(AprilMarch)
200001
200102
200203
200304
200405
200506
200607
200708
(Apr/Oct)
200708
(projected)

Hessian
269.2
243.0
251.3
253.3
249.5
237.6
209.1

Sacking
934.8
1,021.4
954.8
910.0
996.2
974.2
854.4

CBC
0.8
0.9
1.9
0.3
1.1
0.7
0.5

Others
229.4
195.5
167.7
179.3
178.4
165.3
152.2

Total
1,435.1
1,460.8
1,375.7
1,342.9
1,424.1
1,377.8
1,216.2

149.3

579.2

0.5

101.5

830.5

240.7

964.7

0.3

162.2

1,367.9

(Source:www.texmin.nic.in)

TradeScenario

ExportofJuteProducts
(000MT)

(ApriltoMarch)
Hessian Sacking CBC Yarn Others
200001
56.6
2.5
4.2 97.8
26
200102
51.6
2.1
2.9 77.0
14.6
200203
100.8
6.1
77.1
42.0
200304
62.0
57.2
94.9
17.4
200405
60.6
24.4
112.8
16.3
(Source:OfficeofJuteCommissioner)

Total
187.1
148.2
226.0
231.5
214.1

During 200506, the total export of Jute products rose by 33% to 285,800 MT. In
200607, the export was 242,800 MT, lower by 15%. This fall was mainly
attributable to fall in exports of major exportable items like Hessian and
DiversifiedJuteProducts.

Sacking, however, showed an increasing trend in 200607. During March 2007,

overseasbusinessremaineddull.WithclosureofmajorityofthejutemillsinWest

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Bengal due to strike in the jute industry between 5th January, 2007 and 8th
March,2007,productionandexportwereadverselyaffected.
During 200708 (up to November 2007), total export of Jute goods have been
142,000 MT. USA, Egypt, Belgium, Turkey and Syria had been the five major
importingcountriesforIndianJutegoods,accountingforabout46%oftheexport
invalueterms.

MarketScenario

TheapexbodyofthejutemillownersinKolkotaisIndianJuteMillsAssociation
(IJMA).Jutesectorfacesincreasingchallengefromsynthetics.

Jute Sack exports are encouraged with Export Promotion Council (EPC) and
ExternalMarketingAssistance(EMA)asperthetraderequirements.Concessions
areavailableundertheTechnologyUpgradationScheme.

The jute industry had been enjoying 100 per cent mandatory packaging in food
grainandsugarindustryundertheJutePackagingMaterials(CompulsoryUsein
PackingCommodities)Act,1987untilfewyearsago.ThereaftertheGovernment
decidedto dilutethe order asthe industrycannomore functionin aprotective
environment.

The Government has notified 100% compulsory packing for food grains and
sugarinjutebagsfortheyear200708(JulyJune).

Theindustryhashugepotentialtoemergeasamajorforeignexchangeearnerfor
the country, particularly at a time when the global demand is shifting towards
naturalfibres.Thefibrehasgotadistinctadvantageoversyntheticalternativesin
terms of its environment friendly image. There is need to diversify the usage of
jutefibre.Thereshouldbepropereffortstodevelopnewtechnologies,processes
and valueadded products in the nontextile field by developing jutebased
substitutes. As part of strategy, product development and market development
shouldgoonsimultaneously.

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JuteSackingValueChain

JutehastraditionallybeenamajorindustryinWestBengal,providingsubstantial
employmentinthestate.However,performanceoftheindustryhasdeclinedover
the years due to considerable shrinkage in demand for traditional jute products
(mainlyusedforpackagingfoodgrain,sugar,cementandfertilizer).

Moreover,duetoinadequateinvestments,theleveloftechnologyinmanyofthe
existing units has become obsolete. The Indian jute sector, comprising the
organized jute industry and a large number of decentralized/cottage units, has
now reached the stage of producing materials, which are not only durable, but
alsoattractivefromtheaestheticsense.Numerousenduseshavebeenfoundfor
thegoldenfibretomeettherequirementsoftheconnoisseurs.

Jute,thegoldenfibreofnature,isanannuallyrenewablebiodegradableproduct
with excellent thermal and electrical insulation properties. Jute is not only an
excellent packaging material but also has a wide open future. To offset the cost
disadvantages associated with transportation of jute sacks to the endusers,
establishment of jute mills in other parts of the country has been cited as an
urgentmeasure.

End uses of Jute sacks include usage by the food processing industry, export
packaging,cement,foodproductspackingandotherspackaginguses.

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Jute
Grower

Villages

Village Collection Points

Peripatetic
Dealers (Small
Faria)

Growers

Growers

JCI &
Cooperatives

PRIMARY MARKETS
Growers &
Peripatetic
Dealers

Big Faria,
Intermediaries JCI
& Cooperatives

SECONDARY MARKET
Growers, Peripatetic Dealers &
Intermediaries & Big Farias

Kutcha Balers, Millagents, JCI &

Cooperatives

Terminal Markets

Jute
Kutcha Balers, Millagents,
JCI & Cooperatives

Mills

Exporters

Jute
Mills

JCI / Export
Balers

AdvantagesofusingJuteSacksoverPolypropylene/Polyethylene

Juteisenvironmentfriendlyandcompletelybiodegradable.Whilesyntheticsposses
a number of hazards. The toxic effects of synthetics are so serious both the
productionanddisposedaspectsofitthatmanywesterncountrieshavebanneditfor
useinfoodproducts.

Juteisindigenouslyproducedwhilesyntheticbagsaremanufacturedfrompolyester
granuleswhosemanufacturesposesanumberofhazards.Thenoxiousgases,particles
andvolatileorganiccompoundsemittedcreatepollutionandslowpoisoningtheearth
duringitsdisposals.

Jutesackshaveporosity,easilywithstandthehightemperatureandmuchstronger
thanpolysacks.Jutesackscanbereusedandcanbeeasilyrepaired.

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Jute sacks have also advantages over synthetic bags as more stackability, does not
easilytear,spaceutilization,andmanymore.

Jan 7 2008

Sep 8 2007

May 12 2007

Jan 15 2007

Sep 16 2006

May 22 2006

Jan 21 2006

Sep 22 2005

May 25 2005

Jan 25 2005

Sep 22 2004

Jan 27 2004

Sep 26 2003

May 30 2003

May 26 2004

NMCE Sack Spot Price Trend

3,000
2,800
2,600
2,400
2,200
2,000
1,800
1,600
1,400
1,200
1,000
Feb 3 2003

Rs per 100 bags

JuteSackPricesHistory

TheCentralTradeUnioncalledastrikefrom5January,2007,whichcontinuedtill
8 March, 2007. Sacking prices are directly influenced by Jute prices. Any factor
influencingtheJuteindustryaffectsJuteprices.

SackdemandisaffectedbythepoliciesanddecisionstakenbytheGovernment.
The jute industry had been enjoying 100 per cent mandatory packaging in food
grainandsugarindustryundertheJutePackagingMaterials(CompulsoryUsein
PackingCommodities)Act,1987untilfewyearsago.ThereaftertheGovernment
decidedto dilutethe order asthe industrycannomore function in a protective
environment. The Government has again notified 100% compulsory packing for
foodgrainsandsugarinjutebagsfortheyear200708(JulyJune).

As per Section 3(3) of Jute and Jute Textiles Control Order, 2000, the exfactory
fair price of B. Twill Jute Bags of 665 grams of the size 94cm x 57 cm for each
delivery month is worked out by the Office of the Jute commissioner,
GovernmentofIndia,MinistryofTextiles.Thesepricesmaybefixedconsidering

13

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linkageofrawjuteonJuteCorporationofIndiaderivativeMSPpriceofthecrop
year.

AsperSection4ofJute&JuteTextilesControlOrder,2000,themanufacturersare
also directed to produce B. Twill bags of 665 grams of size 94cm x 57 cm and
conforminallotherrespectstothecurrentBISspecification.

The price fixed shall be exclusive of duty of excise, cess payable under Jute
ManufactureCessAct1983andSalesTaxwhichshallbepaidinadditiontothe
exfactorypricebythepurchaser.

DevelopmentOrganizationsintheJuteSector

JuteManufacturersDevelopmentCouncil(JMDC)

ItisthenationalagencyforpromotionofIndianJute,createdbyanActofIndian
Parliament in 1983, it is chaired by the Secretary, Government of India, and
MinistryofTextiles.TheCouncilsprimeobjectiveistoprovidebettermarketing
ofjuteproducts,althoughitaddressesitselftomultidimensionalactivities.

JMDCisabodycomprisingofrepresentativesfromallsectorsincludinggrowers
ofjuteandproducers&exportersofjuteproducts,experts,workmenengagedin
production as well as different departments of Government of India and local
governmentsofjutegrowingStates.

OfficeofJuteCommissioner

The Jute Commissioner looks after orderly development and promotion of the
jute industry in India. He has been discharging both regulatory and
developmental functions. This is not only includes jute mills, but covers right
from raw jute marketing up to the finishing stage of jute goods production
including development of machineries and accessories used in jute
manufacturing units. The Jute Commissioner exercises regulatory powers under
Jute&JuteTextilesControlOrder,2000.

14

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Theprimaryfunctionsoftheofficeare:

1.Toadvisethegovernmentonallmatterspertainingtorawjute,juteindustry,
modernization and diversification programme in both organized and
decentralizedsectors,developmentofjutemachineryindustry,etc.
2. To promote orderlyexports throughoperation of a voluntaryschemeof jute
goodsexporttargets andformulation ofpolicymeasures for achievement of
targetset.
3. To help the Bureau of Indian Standards of develop appropriate quality
standardsfordifferentitemsofjutegoods.
4. To interact with different R & D organizations for intensification of market
oriented research and development programme for the benefit of the jute
sector keeping in view the technological development and consumers
preferences.
5. To assist different public and state sector bulk consumers to obtain their
requirementsofjutebagsintimeforpackingoffoodgrains,fertilizers(urea),
sugaretc.Inparticular,theimplementationofthestatutoryschemeforsupply
ofB.TwillbagsbyjutemillstoFCIandStatefoodgrainsprocuringagencies
at costplus prices under Jute & Jute Textiles Control Order, 2000 is looked
afterbythisoffice.

Ithasvariousotherfunctionsforthedevelopmentofthejuteindustry.

NationalCenterforJuteDiversification(NCJD)

Itwasestablishedin1994undertheChairmanshipofSecretary(textiles)togive
focusedattentiontothediversificationeffortsintheJutesector.NCJDisrequired
to consolidate R&D results of various institutes in jute and textiles and transfer
these to the entrepreneurs for commercial production. It coordinates with
variousagenciesandhelpstheentrepreneursinarrangingtechnical,financialand
infrastructuresupportandencouragesthemtotakeupproductionandmarketing
ofjutediversifiedproducts.

15

Sacking
TheJuteCorporationofIndiaLtd.,Kolkota

ItwasestablishedbytheGovernmentofIndiain1971tofunctionastheofficial
agency in implementing its policy of providing minimum support price to the
jutegrowersandtoserveasstabilisingagencyintherawjutesector.

From a small beginning, JCI spread its network gradually establishing a large
number of procurement centres in the seven major jute growing States in the
country.

TheactivitiesoftheCorporation,asdecidedfromtimetotime,are
1. Toconductpurchaseoperationstoensuremaintenanceofsupportprice:
2. To procure and maintain a buffer stock of fiber ( including imported fiber, if
necessary);
3. Toconductcommercialoperationsinajudiciousmanner;
4. Toimportfiber,asandwhennecessarytosupplementIndigenousavailability;
5. Toexportfiber(totheextentauthorizedbytheGovernment);
6. Toprocessandexportjutegoods;and
7. Toundertakeexportpromotionmeasuresforjutegoods;

InternationalJuteStudyGroup(IJSG)

ItisanintergovernmentalbodysetupundertheaegisofUNCTADtofunctionas
theInternationalCommodityBody(ICB)forJute,KenafandotherAlliedFibres.
TheobjectivesoftheGroupare:
1. Toprovideaneffectiveframeworkforinternationalcooperation,consultation
andpolicy developmentamong memberswithregardtoallrelevantaspects
oftheworldofjuteeconomy;
2. Topromotetheexpansionofinternationaltradeinjuteandjuteproductsby
maintainingexistingmarketsandbydevelopingnewmarkets,includingthe
introductionofnewjuteproductsandthedevelopmentofnewenduses;
3. To provide a forum for the active participation of the private sector in the
developmentofthejutesector;
4. Toaddresstheissuesofpovertyalleviation,employmentanddevelopmentof
humanresources,particularlywomen,inthejutesector;
5. To facilitate the improvement of structural conditions in the jute sector
through improvement of productivity and quality, and promotion of the
applicationofnewprocessesandtechnologies;

16

Sacking
6. Tocreateandincreaseawarenessofthebeneficialeffectsoftheuseofjuteas
anenvironmentallyfriendly,renewableandbiodegradablenaturalfiber;
7. Toimprovemarketintelligencewithaviewtoensuringgreatertransparency
in the international jute market in collaboration with other organizations,
including the Food and AgriculturalOrganization of the United Nations
(FAO).
IndianJuteIndustriesResearchAssociation[IJIRA]
It was established in 1937, the first cooperative R & D organisation rendering
services to the Indian JuteIndustry and Government Agencies who are
promotingIndianJuteinexportanddomesticmarket.
With beginning as IJMARI in 1937, the institute has grown over the years and
movedtoitscurrentimposingpremisesin1952.TheInstitutewasopenedbythe
Honble Prime Minister of India Pandit Jawaharlal Nehru. The first founder
DirectoroftheInstitutewasDr.GWMacMilan
IJIRAhassincegrowntobeaPremierR&DOrganizationonJute,trulyaWorld
Classininfrastructureandsophistication,inresearchandresourcedevelopment,
andincapabilitiesandcommitment.
OtherjuteassociationsincludeNationalJuteManufacturersCorporation(NJMC),
Kolkota,BirdsJute&ExportsLtd,InstituteofJuteTechnologyetc

CurrentScenario

Thedomesticjuteindustryhasbeenunabletoshakeoffitsleanpatchwithslide
inallaspectsoftrade.Theindustryhasstruggledinproductionanddispatchand
inexportsaswell

JuteproductshaveamarketofRs6,000croreinthecountry

The government has removed duty on imports of raw jute and jute products
fromBangladesh,Pakistan,NepalandChina

With zero duty, imported materials are Rs 250300 a tonne cheaper than the
domesticproducts

Thejuteindustryhasalreadylosttheburgeoningfertilizerandcementsectorsto
thesyntheticpackagingmaterials

Toaddtoitswoes,thegovernmenthasremoveddutyonimportsofrawjuteand
juteproductsfromBangladesh,Pakistan,NepalandChina.

17

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The internal consumption of jute products reached its peak in 200102, when it
touched1.5milliontonnesandsubsequentlykeptfallingforthenextfiveyearsto
1.1 million tonnes. Industry observers attributed this fall to the use of synthetic
products.

Thejuteindustryhasalreadylosttheburgeoningfertilizerandcementsectorsto
the synthetic packaging materials. All fertilizer and cement products are now
being packed in PP sacks and HDPE bags. Here also the jute industry has
registered a protest with the government to bring these two sectors back to the
jutefoldasthepracticeisaviolationoftheJPMAnorms.

In the exports front, despatches of Hessian, sacking, CBC, yarn and twine
registeredafallofaround41percentfrom229,000tonnesin200203to161,000
tonnes between April and December 2007. The biggest fall is that of yarns and
twines,whichhascomedownfrom1.14lakhtonnesto70,000tonnes.

Theexportsofsacking,HessianandCBChavesufferedmostlybecauseofgoods
fromBangladeshcuttingintotheEuropeanandtheUSmarketsatlowerpricesas
theappreciatingrupeemadeIndiangoodsuncompetitiveintheglobalmarkets.

18