Essay on the development of Jute Textile Industry in India

Jute Industry is one of the oldest industries of India. It is a major foreign exchange earner for the country as such plays a significant role in the economy of the country.

Jute is one of the most important fibres. It is used for manufacturing various items like hessian, gunny bags, ropes, rugs, carpets, etc. Jute bags are in great demand for the storage of agricultural and industrial products such as wheat, rice, gram, maize, pulses, sugar, fertilizers, cement etc.

The other jute products are used for various other purposes. The demand for jute products has increased mainly on account of development of agriculture and industries in the world.

The history of jute manufacturing in India dates back to 1854, when the first mill was set up at Rishra near Kolkata, by an Englishman, George Aukland. By 1860, the Hoogly basin became the centre of jute mill industry in India.

Before independence, India had a monopoly in the production of raw jute and jute manufacturing’s in the world. The partition of the country inflicted a severe blow to the jute industry, with the result that jute mills remained in India, whereas a major portion of jute producing area went over to Pakistan.

In 1947-48 production of jute was 16-5 lakh bales as against pre-partition output of 65-7 lakh bales.

This situation created a crisis in the jute textile industry and it was further worsened, when the Pakistan Government stopped supply of raw jute to India.

Thus, efforts were made by the Government of India for the extension of area under jute in the country after independence. From a paltry production of about 16-5 lakh bales in 1947-48 the production of raw jute rose to 60 lakh bales in 1961-62 and 120 lakh bales in 1985-86.

There are 69 jute mills in the country with a total installed capacity of 44,376 looms. The industry has absorbed about 2-5 lakh industrial workers.

The most important feature of the jute mill industry in India is its concentration in the lower Hoogly basin, within a radius of about 64 kms of Kolkata. This region alone has 55 jute mills. Jute manufacturing in this region has responded to a variety of factors. These are:

(i) Raw Jute is locally available.

(ii) Coal is available from Raniganj and Asansol Coalfields, which are situated close by.

(iii) Humid climate favours manufacturing of jute yarn.

(iv) Availability of cheap labour from Bihar, Jharkhand, Assam, Orissa and Uttar Pradesh. Labour is also available in the region on account of dense population.

(v) Availability of port facilities for import of machinery and export of finished products.

(vi) Development of means of transportation particularly water transportation.

(vii) Developed banking and marketing facilities.

(viii) Availability of capital for investment in jute textile industry from local business men.

(ix) Hydro-electricity from Damodar Valley Corporation.

Thus, the above-mentioned factors have played a very significant role in developing jute mills in the Hoogly Basin of West Bengal. Jute Centres have sprung up on both sides of the river.

The most important centres are Birlapur, Budge Budge, Uluberia, Kolkata, Bally, Rishra, Titagarh, Serampur, Shamnagar, Kankinara, Naihati and Bansberia. A variety of items are manufactured in these centres.

In the state of Andhra Pradesh, there are 4 jute mills. The important centres are Guntur, Ongole, Nelimarla and Eluru. In Uttar Pradesh jute mills have been developed at Kanpur and Gorakhpur.

The states of Bihar (3), Andhra Pradesh (4), Madhya Pradesh (1) and Assam (1) have also Jute mills.

India manufactures over one million tons of jute goods every year. The year-wise production is as under:

1982- 83 13 4 lakh tonnes

1983- 84 10-9 lakh tonnes

1985-86 13 S lakh tonnes

About 35% of the manufactured jute items are exported. In 1982-83, the country earned Rs. 202-76 crores by way of exporting jute goods, whereas in 1985-86, India exported jute manufacturing’s worth Rs. 270 crores.

The markets are Australia, New Zealand, U.S.A., Canada, Indonesia, Japan, Argentina, and Russia, European, African and Middle East countries.

The jute textile industry faces a number of problems. They are:

(i) Shortage of superior quality jute, (ii) labour strikes and lockouts, (iii) old machinery, (iv) competition with Bangladesh products and (v) emergence of Thailand, Myanmar, Philippines and Brazil in the filed of jute production and jute manufacturing’s.

The use of other substitutes like bags made of sisal, hemp and synthetic fibres are gradually encroaching market of jute manufacturings.

In the recent years cut in power supply has become another problem for the industry. However, the jute mill industry has made a great progress in the country.

In 1971, Jute Corporation of India was set up with its headquarters at Kolkata, with a view to stabilize price of raw jute and marketing of jute products abroad.

The jute industry is traditionally export oriented. India ranks first in raw jute and jute goods production. It ranks second in export of jute goods in the world. Jute packing materials are facing tough competition from other low cost synthetic substitutes.