cumulative effect of developments in North America, the former Soviet Union,
Western Europe, Africa and Latin America has been a steady and substantial
erosion of the export market for jute and jute goods, especially for exporters
in Bangladesh. At the same time, demand for jute has increased in India, which
has become the centre of both global production and consumption.
could once again compete in export markets if producers and processers could
convert to higher quality fibre and increase productivity. Producers are facing
a unique opportunity with the increase the price of oil, which hurts the
competitiveness of otherwise cheaper synthetic jute substitutes. The technology
is available today for the production of higher quality yarn and fabrics from
other key element to a new strategy is the development of new major, rather
than niche, markets. If there is to be a shift from Indian consumption of
sacking to alternatives, it will involve developing markets for hundreds of thousands
of tons of jute.
ReportA Road Map for Jute, ITC’s research paper on the challenges and
opportunities for the industry, was produced in collaboration with the
Dhaka-based International Jute Study Group. To download the report in pdf free
of charge, click here.
Here are links to associations that can provide further information relating to jute:
ITC can undertake advisory projects for both
producers and processors. Producers’ first battle needs to be the retention of
existing markets for jute goods. In parallel with this defensive strategy,
there must be a concerted effort to improve fibre quality, to retain farmers’
interest in growing the crop and to reduce agricultural costs. At the same time
jute mills need to improve their productivity. This requires investment in
machinery design and development.
In the longer term there is a substantial market
opportunity in plastic composites, of higher value fabrics in apparel and
household furnishings, in niche market applications and others that are yet to
be developed. Advisory projects could focus on the following:
ITC statistics on commodities – including jute and other fibres
Understanding the structure and evolution of international markets is essential for both
firms and trade support institutions (TSIs). Firms scanning the world market
for opportunities to diversify products and markets, as well as suppliers, and
TSIs setting priorities in terms of trade promotion, sector performance,
partner countries, and trade development strategies must have detailed
statistical information on international trade flows in order to utilize
resources effectively. Strategic market research based on such information
helps them gauge the competitiveness of national and sector trade performance and
identify priority products and markets for trade development.
and disseminates market research and trade analysis for trade support
institutions and the business community in developing countries and transition
economies. We offer in-depth analysis of international trade flows and the
development of analytical tools for market analysis and trade promotion, as
well as training activities. For further information on data for jute and other
fibres, look at the “Data and Research” section on this page.
ITC maintains contact with a small group of
international fibre trade experts – some of them having been associated with
ITC for more than ten years and whom are still available to provide services.
present few farmers practice the balanced use of fertilizers at the correct
stage of plant growth and many do not use plant protection measures against
pest attack. Instruction and education would go part of the way to improve this
For more informantion
on setting up training programmes in the sector, contact us.
are currently no ongoing projects in the sector in ITC.
ITC had an extensive programme in the jute sector in the
1990s, in particular on product and market development and promotion.