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Jute Industry In Favour Of Diversification

Contrary to the earlier days, when most of the small-scale units in the Indian jute

industry just focused on manufacturing traditional products such as sacks for packing food grains, cement, wheat and sugar, an increasing number of units in the jute industry are now thinking of diversifying their product basket.

Growing international interest for diversified and lifestyle jute products have prompted several SME jute manufacturers to develop value-added products.

Up for a facelift

The Indian jute industry with a turnover of Rs 5,500 crore is finding more takers for bio-degradable, eco-friendly jute made-ups both in the domestic and international markets. The rising demand for value-added jute products has encouraged SME jute players to go for diversification and modernisation of their product base.

Although the jute sectors mainstay will be packaging material for agro-food commodities, the small-scale units in the industry also need to expand their product lines and enter into the production of non-traditional jute items such as soil saver, decorative fabrics and special Hessian, said Hukmi Chand Bang, proprietor of India Jute Mills, a small-sized jute mill in Murshidabad, West Bengal.

Some small-scale jute mills in the country have already started using the natural fibre to make a variety of items including fancy party bags, stylish clutch bags, laundry bags, rucksacks, branded totes, shopping bags and wine bags.

Given that the market demand for value-added jute products is robust, most small-scale units in the industry are looking at ways to take up product diversification, while many are also making sincere attempts to revamp their stores and modernise their machineries and equipments, said Sanjay Dhelia, proprietor of Aaltex International, a leading Kolkata-based manufacturer and exporter of jute products, especially different types of fashionable jute bags.

Besides small jute players making an attempt to modernise their units, the Jute Manufactures Development Council (JMDC) is also doing its bit by initiating a massive modernisation drive in the jute sector to enable jute units to diversify their product portfolio.

by: David Parks
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