Jute in India
Why it Matters?
India banned jute product imports from Bangladesh via land routes due to strained diplomatic ties, trade malpractices, and harm caused by subsidised imports to Indian farmers.
What You Should Know?
It is the second-most important fibre crop in India after cotton.
It is widely used to manufacture gunny bags, ropes, carpets, rugs, and tarpaulins.
It is preferred for its low cost, softness, and strength.
Conditions for Jute Cultivation:
It requires a hot and humid climate with 24°C to 35°C temperature.
It needs 120–150 cm of rainfall and 80–90% relative humidity.
It is a water-intensive crop, and its sowing begins in pre-monsoon to utilise the monsoon effectively.
It is generally sown in February and harvested in October, and it takes 8–10 months to mature.
It thrives in alluvial soils, light sandy or clayey loam soil.
India is the world’s largest producer of jute.
West Bengal alone accounts for 78% of India’s total raw jute production.
Raw jute is mainly produced in the states of West Bengal, Bihar, Assam, Odisha, Andhra Pradesh, Tripura, and Meghalaya.
The Indian jute industry provides direct employment to over 4 lakh workers in organized mills and diversified units.
News:
India has banned the import of certain jute products and woven fabrics from Bangladesh through all land routes, and imports are allowed only via Jawaharlal Nehru Port (Nhava Sheva) in Maharashtra.
The notification was issued by the Directorate General of Foreign Trade (DGFT), and restrictions do not apply to goods transiting through India to Nepal and Bhutan.
The ban covers jute products, flax tow and waste, jute and other bast fibres, jute yarn (single and multiple folded), woven fabrics or flex, and unbleached woven fabrics of jute.
Under the South Asian Free Trade Area (SAFTA) agreement, Bangladesh enjoys duty-free access to Indian markets for jute products.
India had already imposed an Anti-Dumping Duty (ADD) on jute products from Bangladesh due to state subsidies and dumping practices.
Despite the imposition of Anti-Dumping Duty, imports rose from United States Dollar (USD) 117 million in Financial Year (FY) 2021–22 to USD 144 million in FY 2023–24, indicating circumvention through technical exemptions and mis-declaration.
Domestic jute prices in India fell below the Minimum Support Price (MSP) of ₹5,335 per quintal in FY 2024–25, adversely impacting Indian farmers and jute mills.