JUTE and JUTE PRODUCTS

Abhinav Verma MBA-IB

Introduction
The Jute industry occupies an important place in the national economy of India. It is one of the major industries in the eastern region, particularly in West Bengal Jute, the golden fibre, meets all the standards for safe packaging in view of being a natural, renewable, biodegradable and eco-friendly product It is estimated that the jute industry provides direct employment to 0.37 million workers in organized mills and in diversified units including tertiary sector and allied activities and supports the livelihood of around 4.0 million farm families In addition there are a large number of persons engaged in the trade of jute

JUTE PROCESSING

Sowing

Weeding

Retting of jute plant

Fibre extraction

Scutching

Drying of scutched fibre

Transportation of raw fibre

JUTE MILLS IN INDIA

There are 84 composite jute mills in India
6 mills are under Government of Indias P.S.U. 1 mill (Tripura) is under State Government 2 mills (Assam Co-op. & New Central) are in the Cooperative sector 71 are privately owned mills

LOOMS & SPINDLES

As on 01-01-2012, total number of looms installed in jute industry stood at 49,529

The installed spindles in jute mills were 7,60,304

IMPORTANCE
Raw jute crop is an important cash crop to the farmers. Cultivation of raw jute crop provides not only fibre which has industrial use, but jute stick which is used as fuel and building material by the farming community. Raw jute is produced mainly in the state of West Bengal, Bihar, Assam, Orissa, Andhra Pradesh, Tripura and Meghalaya.

JUTE PRODUCTS
Mats and Carpets
Decorative wall hangings Designer Foot Wears Hand Bags

Sofa Set and Beds

Hammock Brief Cases Ladies Bags

Flower and Vases

Chappals Purses and wallets Shopping Bags

JUTE PRODUCT EXPORTS

2010-11
Gift Articles Wall Others Decorative Hangings Fabrics

Floor Coverings Hand & Shopping Bags

IMPORT EXPORT
Qty: in lakh bales
2008-09 2009-10 2010-11 2011-12 2012-13

(A)Supply
(i)Opening Stock (ii)Jute Crop (iii)Import Total 22 82 2 106 89 8 90 3 101 77 12 100 7.5 119.5 87 22.5 102.5 9 134 92 31 93 8 132 95

(B)Distribution
(i)Mill Consumption

(ii)Domestic/Industrial Consumption
(iii)Export Total

9
Neg 98 8

10
2 89 12

10
Nil 97 22.5

10
1 103 31

10
Nil 105 27

(C)Closing Stock

STATE WISE PRODUCTION

States Andhra Pradesh Assam Bihar Meghalaya Nagaland Orissa Tripura West Bengal Others TOTAL % Change over the previous year 2008-09 295 674.3 1220.1 54.6 7.2 114.7 8.7 7965.5 31.1 10371.2 2009-10 191.9 735.5 1277.7 53.1 11.1 112 9.4 9400.1 35.7 11826.5 0.14 2010-11 224 650.7 1310.4 52.6 5.4 113.5 10.7 8214.3 38.6 10620.2 -0.1 (in 000 bales) 2011-12 2012-13 228 225 795 823 1930 1690 86 86.31 0 40.2 193 177.7 9 11 8800 8349 96 4.5 12137 11406.71 0.14 -0.06

FINANCIALS
Particulars Quantitative (Bales/Lakh):
Procurement of Raw Jute Sales of Raw Jute Closing Stock

2010-11 2011-12
0.34 0.10 0.26 1.16 1.34 0.47

Financial (Rs./Lakh)
Sale of Raw Jute Sales jute seed Adjusted cumulative Profit after regulation 566.08 625.09 4791.44 5599.39 546.42 5813.39

Of subsidy as per Cabinet decision

PROCUREMENT & SALES

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Procurement of Sales of Raw Closing Stock Raw Jute Jute 2010-11 2011-12

JUTE PRODUCTION

WORLD TOTAL JUTE PRODUCTION

PRODUCTION RANK OF INDIA

Rank
1
2 3 4

Country
India
Bangladesh China Myanmar

Production (In $1000)

7,08,776
2,98,432 25,367 9,762

5
6 7 8 9 10

Uzbekistan
Nepal VietNam Thailand Sudan Egypt

7,461
6,588 5,596 1,865 1,250 821

COMPARISON WITH OTHER COUNTRIES

National Jute Board

National Jute Board Is Under Ministry of Textiles. The Ministry of Textiles is responsible for policy formulation, planning, development export promotion and trade regulation in respect of the textile sector. It included all natural and manmade cellulosic fibres that go into the making of textile, clothing and handicrafts. The developmental activities of the Ministry are oriented towards making adequate quantities of raw material available to all sectors of the textile industry and augmenting the production of fabrics at reasonable prices from the organised and decentralised sectors of the industry.

About Ministry
The principal functional areas of the Ministry cover the following: Textile Policy & Coordination Man-made Fibre/ Filament Yarn Industry Cotton Textile Industry Jute Industry Silk and Silk Textile Industry Wool & Woollen Industry Decentralised Power loom Sector Export Promotion Planning & Economic Analysis Integrated Finance Matters

Indian Organisations for Development of Jute

Organisation Office of Jute Commissioner Main Activies
To advise Government the jute industry and trade on all matters relating to the development of jute industry and to implement the Government policies. The representative body of the Indian jute industry.

Indian Jute Mills Association Indian Jute Industries' Research Association Research and Development wing in Jute National Jute Manufactures Corporation Ltd. Apex body for management of all nationalised jute mills. Calcutta Jute Fabrics Shippers Association The representative body of the Indian Shippers of jute goods. The Directorate of Jute Development Central Research Institute for Jute & Allied Fibre National Institute of Research on Jute and Allied FibreTechnology Department of Fibre Technology Institute of Jute Technology Forward Markets Commission The East India Jute & Hessian Exchange Ltd. The Jute Corporation of India Ltd. The Jute Balers' Association Gunny Trades Association

To look after the development of raw jute cultivation and application of scientific methods of cultivation both at micro and macro levels. Engaged in genetic research and development of raw jute Engaged in various technological researches on jute and other long vegetable fibres. Premier institution running jute technology course. To look after the forward and future trading in raw jute and jute goods.

Recognised association to regulate forward trading in raw jute and jute goods To ensure minimum support price to the jute growers and to act as raw jute price stabilising agency. Recognised association for trading in raw jute.

Major Issues of Buyers That Need To Be Addressed

High & unstable prices Lack of marketing efforts / Lack of information about Indian suppliers / jute products Poor service levels / Lack of relationship building by suppliers Unsatisfactory or inconsistent quality Limited designs & product variety Technical limitations of jute usage Supply chain is not streamlined resulting in high lead times and inefficiencies High duty and taxes / Tariff and non tariff barriers in specific markets Inaccessibility to jute related data (e.g. prices etc.)

Product Standardization
Currently a wide range of product specifications are being manufactured for various jute products. Results in lack of planning of production, resulting in manufacturing delays. Also lack of standard specifications makes it difficult to control quality standards of finished goods in all cases (except for exporters who are quality conscious and buyers who demand quality certifications)

Quality assurance testing & certification

Product quality needs to be improved through adherence to quality standards and constant innovations. Once standard specifications for product are established, certification for the same should be given by an independent certification agency for all export shipments in order to maintain quality standards and assurance for buyers.

NJB has already undertaken steps to address the following recommendations:

Formation of PPP based "export body" for JDPs under NJB Product standardization Organize Stake holder Education Program Open Marketing / liaison offices in key locations Open warehouse for JDPs at select markets Develop Online information portal Developing brand India for Jute products Promotional activities like organizing road shows, workshops, trade fair participation etc.

Sources
REPORT OF THE WORKING GROUP ON TEXTILES & JUTE INDUSTRY(Ministry of Textile) World Jute & Kenaf Statistics: at a Glance 2012 (International Study Group) THE JUTE AND JUTE TEXTILE INDUSTRY(Ministry of Textile) The study conducted by Technopak

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