Diversification is way forward for jute industry

Jute industry in India, with a turnover of Rs 5,500 crore, is seeing growing international interest for diversified, lifestyle jute products. Of the Rs 1,200-crore jute exports, lifestyle products like shopping bags, carpets, readymade garments and furnishings constitute about 35 per cent. However, the domestic market is still dominated by traditional products like sacking, where again the government body, the Food Corporation of India is the largest buyer.

There is an urgent need for the domestic jute market to diversify, said Atri Bhattacharya, secretary, Jute Manufacturers Development Council (JMDC).

“We need to diversify. What if the FCI, the largest buyer of sacking finds some other acceptable alternative to jute? We, of course, want exports to grow. At the same time we cannot ignore the domestic market,” Bhattacharya said, speaking to Business Standard at the jute buyer-seller meet on Tuesday.

Bio-degradable, eco-friendly jute made-ups have a very big international market. But in India the large volume made-ups like standard shopping bags and carry bags (not fancy ones) move in places only where the government clamps down on pollution control.

“In cities where the government is serious about eco-friendliness, like in Delhi, we sold about half a million bags in the last 2-3 months. These are the areas where we have huge opportunity,” Bhattacharya said.

JMDC has launched the re-branding of lifestyle jute products. “We have entered into an agreement to sell the products in Kolkata in retail malls to begin with. Six such shop-in-shops have been opened. We will later extend this to other parts of the country,” Bhattacharya said.