Though India continues to be the largest producer and processor of natural jute in the world, very little seems to have changed for the industry participants over the last many decades. Manish Kajaria, Chairman, Jute Product Development and Export Promotion Council (JPDEPC), talks about the many challenges that the jute industry faces in the current times and what needs to be done to overcome them.
TDB: Could you give us an overview of the jute industry in India?
Manish Kajaria (MK): Jute industry, despite being an age-old industry, has not changed much over the last few centuries. About 80% of the production, which we call the conventional product, is still mostly used for packaging of grains and such other items. However, the remaining 20% has gone through a series of changes in the last 20 years and it accounts for those used in the construction industry, lifestyle products, etc. One of the biggest challenges for the industry is the continuous increase in price of raw materials – but this is expected as it’s a natural product. Also, man-made products, which China produces in large quantities, are another threat to the industry as they are cheaper than the natural products.
TDB: There seems to be a big gap between exports of raw jute and that of jute products. What is the reason?
MK: Yes, the gap is huge. Like I said, this is mainly because of the 80/20 division between traditional products and innovative products. Diversification for export is not an option in the conventional sector as production can hardly meet the demands of the domestic market. Also, the type of jute grown in India does not allow us to innovate. Well, some parts of Assam grow the finer jute, but we have to import the rest from Bangladesh.
That said, there is huge scope, provided the government lends proper support to the sector. We can grow this sector by four-fold in the next five years. But, what we desperately need is awareness campaigns and marketing across the globe. But, the National Jute Board, which is responsible for such activities, is not functioning as per the requirements of modern trade. We are now trying to work with the Ministry of Textiles, by informing them about the sector’s potential.
This story is from the July 2017 edition of The Dollar Business.
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This story is from the July 2017 edition of The Dollar Business.
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