India's Jute Industry Performance and Policy Framework
India maintains its position as the world's largest producer of raw jute and jute goods, accounting for approximately 75% of global production as of July 2026. In FY 2025-26, the country produced 94.03 lakh bales of raw jute and 12.80 lakh metric tonnes of jute goods, demonstrating significant growth from 88.02 lakh bales in the previous year. The industry exhibits strong domestic consumption patterns with 12.05 lakh MT (94% of production) consumed domestically, while exports reached 1,71,300 MT of jute goods valued at ₹3,155.27 crore and 22,700 MT of raw jute worth ₹225.11 crore.
Employment and Geographical Distribution
The jute sector serves as a critical employment generator, providing direct employment to approximately 3.70 lakh workers in organized mills and diversified jute units while sustaining the livelihoods of nearly 40 lakh farm families engaged in cultivation. The industry has a concentrated presence in eastern India, with West Bengal hosting 89 out of the country's 120 composite jute mills as of December 2025. Other significant jute-producing states include Bihar, Assam, Odisha, and Jharkhand, with cultivation typically occurring during March-April under rainfed conditions requiring 700-1,500 mm rainfall.
Historical Context and Regulatory Framework
The jute industry has evolved significantly since its commercial emergence during the British Colonial period. The partition of India in 1947 disrupted the integrated jute economy, leading to the "Grow More Jute" campaign in September 1949 which successfully doubled production from 6.7 lakh tonnes (1951-52) to 14.56 lakh tonnes (1961-62). The Jute Packaging Act, 1987, strengthened the sector by mandating jute sacks for packaging essential commodities, currently requiring 100% packaging for food grains and 20% for sugar.
Government Interventions and Support Mechanisms
The government has implemented comprehensive support measures including the National Jute Development Programme (NJDP) with an outlay of ₹485.58 crore from FY 2021-22 to FY 2025-26. The Minimum Support Price for raw jute has been fixed at ₹5,925 per quintal for FY 2026-27, ensuring a 61.8% return over the all-India weighted average cost of production and representing a 147% increase from the FY 2014-15 MSP of ₹2,400 per quintal. MSP payments to jute farmers increased from ₹441 crores during FY 2004-05 to FY 2013-14 to ₹1,342 crores from FY 2014-15 to FY 2025-26.
Diversification and Innovation Initiatives
The sector has expanded beyond traditional applications through several innovative programs. The JUTE-ICARE scheme, launched in FY 2015-16, enhances productivity through scientific cultivation, mechanization, and improved retting techniques. Jute Geotextile (JGT) has emerged as a versatile technical textile for civil engineering, soil erosion control, and infrastructure development applications. The industry has also developed jute-viscose-blended apparel showcased at the 2026 Commonwealth Games, developed by the National Jute Board and designed by NIFT New Delhi.
Digital Transformation and Market Development
Significant digital initiatives include the JUTE-SMART portal, which has facilitated procurement of 303 lakh bales of B.Twill Jute Bags worth approximately ₹1,00,000 crores by more than 20 State Procurement Agencies since November 2016. The Jute Crop Information System developed by ISRO through NRSC includes mobile app BHUVAN JUMP and web platform PATSAN for jute monitoring using remote sensing. Market development efforts included over 57 regional jute fairs in FY 2025-26 and various export promotion schemes including Production Linked Incentives for Jute Diversified Product exports.
Institutional Framework and Support Structures
The Jute Corporation of India Ltd. serves as the sole nodal agency for MSP implementation through approximately 110 Departmental Purchase Centers across six states. The National Jute Board functions as the nodal development agency, implementing schemes including Jute Raw Material Bank for unorganized sector support, capital subsidy programs offering 30% subsidy on machinery costs, and retail outlet support with 25% sales assistance up to ₹9 lakh per unit. The Board also administers the Jute Mark India certification system and provides scholarship support to girl children of jute workers.