EXPORT OF JUTE PRODUCTS History • For centuries, jute has been an integral part of culture of Bengal • Prior to the establishment of the first jute mill in 1855, handloom weavers used jute fibre to make twines, ropes, coarse fabrics for the poor, and also for fishing and for mooring vessels. Towards the end of the eighteenth century, jute attracted the attention of the British EAST INDIA COMPANY, which sent a consignment of jute samples to England in 1791 that were successfully spun by flax machineryRole in Indian Economy • The jute sector occupies an important place in the Indian economy. The jute industry provides direct employment to about 0. 26 million workers, and supports the livelihood of around 4. 0 million farm families. Presently it also contributes to exports to the tune of nearly Rs. 10746 million. the Government of India has started the “Jute Technology Mission”.
This will benefit jute growersFor this mission, the Government approved a sum of Rs. 5000 crore. Top Ten Producers Of JUTEAreas in India where JUTE is produced Jute products • Jute Yarns Jute Fabrics Jute Hessian Jute Floor Coverings Jute Mats Jute Border Different range of dyed Jute Fabrics Jute Bags Jute Wine Bags Fashionable Costume Jewellery Others organisations • 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 strenght • • • • • • • • 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 weakness Imports of cheap and alternative textiles from other Asian countries • Use of old methods of manufacturing • Poor supply chain management • Marketing has been another weak point of jute industry(brand image) • Huge decentralized and unorganized sector • High production cost • Though jute industry is a labour intensive Opportunity • i) In many areas Indian Jute industry is ahead of other jute producing and manufacturing countries viz. • (a) It has learned how to upgrade a lower grade fibre in the batch mix. • (b) It also leads in diversified value added products. (ii) The Government at the centre and at state has pro-jute mindset. They have plans for taking jute industry to new horizon.
This is evident from National Jute Policy 2005 which targets to reach export Rs 5,000 crores in the 11th fine year plan from present amount of Rs 1,000 crores. • (ii) Brazil is one of the major importers of Indian Jute, and is estimated to have a market of 25,000 tonnes of foodgrains, and few of Indian jute bag producers have been awarded zero duty which opens new doors to other industry producers. (iii) Industry should accomplish Total Quality Management so as to build quality in the products threats • Threats: • (i) One of the major threats faced by Indian jute industry/producers is from Bangladesh Jute industry, which is armed with 7% cash subsidy on all items of jute products without any string.
• (ii) Withdrawal of Export Subsidy Assistance (ESA) from 1 April, 2007 has been a setback to the export of Indian Jute industry Target market for exports • • • • • • • Russia Belgium Canada Japan Brazil United nations Poland After a seven-year legal battle by the Jute Manufactures Development Council (JMDC), the Brazilian government has lifted the antidumping duty on import of jute bags into Brazil from 5 Indian companies. Brazil also lowered the duty for other companies from 38. 9% to 15% on jute Products Jute products in Canada • People are more Aware Regarding the Use of Eco friendly Products • Large Number of Indian Popullation • People Are more Concern towards environment • Export Packaging Purpose • Government Support for Jute Product • Change in Fashion trendsJute products in Canada • Advantages of Jute Eco Bags • There are a number of ways in which Jute Bags can assist your organisation. • From a business point of view, endorsed by valued customer feedback, there are many advantages to using Natural Eco Bags. • Promotion – As these bags will be used time and time again, they provide your business with a walking advert. • Customer Loyalty – From research carried out, it has been proved that customers using ‘customised Bags’ return more regularly, therefore increasing your Customer loyalty.
Reduces Costs – As customers will be re-using these bags, it will therefore reduce the number of plastic bags you need to provide. environmental perspective, • • • • • Eco-Friendly Bio-Degradable Recyclable Reusable Therefore, together we can help reduce the number of throw away plastic carriers that are in use and limit the negative effect that they have on our environment Jute Product Exports From India in 2010 Column1 Sacking 19% yarns 30% shoping Bags 15% Floor Covering 32% Food Bags 4%