Flood may cut jute production by 20%

National Jute Board has anticipated a cut in Jute production by 20% this financial year.

About Jute Industry 

The jute industry is the oldest and prominent industry in India. 

• Major Jute-Producing States
  • Key States: West Bengal, Assam, Bihar, Orissa, and Andhra Pradesh.
    • Concentration of Jute cultivation: 85% of the world’s jute cultivation is in the Ganges Delta. 
  • Primary Focus: West Bengal dominates the industry due to the highest number of jute mills.
• Importance to National Economy
  • Golden Fiber: Jute is known for being natural, renewable, biodegradable, and eco-friendly which makes it ideal for ‘safe’ packaging.
  • Products: Includes hessian (burlap), sacking cloth, food-grade jute cloth, yarn, carpet backing cloth, blankets, decorative fabrics, floor coverings, and shopping bags.
  • Capacity: India has over 50 million spindles and 842,000 rotors for jute production.
• Global Standing
  • Production Leader: India produces a major proportion  of the world’s jute goods.
  • Domestic Consumption: Around 90% of jute production is used within India.
  • Production Figures: Jute production was 1,246,600 metric tonnes in 2022-23, up from 1,080,000 metric tonnes in 2021-22.

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Status of Indian Jute Exports

• Growth in Jute Exports
  • CAGR: Jute exports grew at a CAGR of 9% between 2015-16 and 2020-21.
  • Key Months: In March and February 2022, India exported jute and floor coverings worth about US$ 49 million each.
• Diversification of Jute Products
  • Jute-diversified Products: India exports various jute products, including hand & shopping bags, gift articles, decorative fabrics, etc.
  • JDP Share: JDPs have the maximum share in jute exports, valued at about US$ 21.24 billion in 2022-23.

Government Initiatives for Jute Industry

• Improved Cultivation and Retting Exercises (ICARE): Focuses on enhancing cultivation and retting practices.
• Domestic Market Promotion Activities (DMPA): Increases domestic sales of jute products.
• Export Promotion Schemes
  • Export Market Promotion Activities (EMPA): Organizes international fairs and conferences.

• • Market Development & Promotion Scheme (MDPS): Promotes jute products in domestic and international markets.
  • Capital Subsidy for Acquisition of Plants and Machinery (CSAPM): Provides financial assistance for acquiring jute manufacturing machinery.
    

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