|Description | Overview |
Characteristics | Uses
of Jute | Varieties
and Grading of Jute | Government
Policy | Trading | Contract
is obtained from a plant named Corchorus. Jute is
spun into strong threads having a coarse
appearance as it is long, shiny, and a soft fibre.
Jute is the second most cheapest natural fibre
after cotton, based on the two criteria- amount
produced and types of uses. Plant materials are
composed in the jute fibre. It is a fibre
collected from the skin of the plant. Jute plant
is generally 6 to 12 feet in height. Due to above
reasons jute is one of the most important natural
fibres. Its industrial term is Raw Jute. Jute is
extensively used in manufacture of heavy yarns and
is considered to be the cheapest vegetable
- It is obtained from the skin of the
cotton, its the most important fibre, based on
the criteria - availability, production, global
consumption and usage.
- It is recyclable
- Jute ensures good ventilation and so it is
used for packaging and agricultural areas.
- It is used in
raw materials for various activities i.e.
textiles, non textile, agricultural sectors,
packaging, agricultural sectors and
construction as it is a versatile fibre.
India is the largest producer of jute in the world,
accounting for over 60% of the world’s production
of jute. For over a century, India has been
producing, and exporting jute and fibre products.
Bihar and West Bengal account for 50% of the country’s
output, while 7 other states grow jute. The total
area in India where jute is grown is a staggering 1
million hectares of land. The produce of raw jute is
equivalent to about Rs. 1500 crore. The size of the
jute industry (including raw jute production) is
app. Rs. 4500 crore. In India over 4 million
families are involved in cultivation of jute.
And there are over 76 jute mills in the country.
India produces its own jute seeds. The state seed
corporation of Andhra Pradesh and Maharashtra
produces more than 90 percent of seeds.
USA, UK, South Africa and
Belgium are the main importers of Indian jute in
the world. They import 25% of the total India’s
production of jute. India has excellent
infrastructure facilities in meeting foreign
(export) commitments. Apart from India, other
countries like Bangladesh, China, and Myanmar are
other important exporters of jute. As a matter of
fact, the total production of jute in the world is
3 million tonnes (roughly around 24-25K Rs. Crore).
growing places in the world
India, Bangladesh, China,
Thailand are leaders in jute production. Whereas
in India the production is scattered over in the
regions of Assam, Orissa, Tripura, Meghalaya and
Uttar Pradesh besides West Bengal and Bihar.
is a rainy season crop, and a yearly plant-fibre
crop. It’s sowed in March -May and harvested
anywhere between June to September (depending
on when the crop is sown).
is (from ancient times) been graded on visual
characteristics such as the length, color, and
root characteristics and its place of origin.
Its also graded on six fibre characteristics
such as strength, quality (how fine it is),
its root content, how bulky it is, its color and also its defects. Others like tossa
and white jute have been classified into 8
There are four major varieties of jute namely
Tossa, White Jute, Mesta and Bimli. Out of the
total production of jute in the world, Tossa alone
accounts for about 78% of this, while White
Jute is 10%, Mesta is 7% and Bimli is 5%.
fibres are graded as the following (only after
extraction). The ones featuring above the others
are of more use, are stronger
Very strong Colour, lustrous and very strong
Average colour, not so lustrous average
medium strength, strong fibre
B-Bottom- medium strength, unsuitable for higher grades,
No well defined colour (can be any colour),
average strength of fibre
The major types of Jute are classified into
White Jute- 8 grades (ranging from W-1 to W-8)
Tossa Jute- 8 grades (ranging from TD-1 to
Mesta Jute- 6 grades (M-1 to M-6)
Bimli- 8 grades (Bimli-1 to Bimli-8)
Other less famous types: Assam- 8 grades
(Assam-1 to Assam-8)
Jungli- 8 grades (Jungli-1 to Jungli-8)
Government has decided to take firm
iniatives in strengthening the jute sector of
India because millions and millions of Indians
are directly or indirectly dependent on the
Government of India makes sure that farmers
are not forced to sell their raw jute
below the market price or the MSP (minimum
Plastic, a cheap and hazardous material was
being used in packaging of some commodities.
Because of its property of not being
bio-degradable (and since it was not
eco-friendly), the government ordered the
compulsory use of jute packaging for select
commodities. This has given the industry a
huge boost and helped it to stabilize,
ensuring a better return for the jute farmers.
yearly price volatility (ups and downs for a
period of time) for raw jute is around 12.6%.
futures- these are traded and exchanged by a fair
bond to make and accept delivery of a certain
quality and quantity of Jute during the period in
the future, at a price confirmed upon at the time
the engagement is made.
Jute futures are highly standardized products.
Future prices are quoted for jute products with
accurate specifications delivered at a discussed
location during a specified period of time. The
exchange assures a mechanism that makes sure that
the contract will be honored, and therefore shuns
out any counter party risk. This is because the
two parties to the transaction trade without too
much exchange on the information of the parties.
Traded mainly in NCDEX and NMCE (National
Commodity and Derivatives Exchange Ltd. and
National Multi Commodity Exchange of India Ltd. respectively.)
contract specifications of jute in various