Introduction
The jute industry is among the oldest and most prominent industries in India. The major jute-producing states in India are West Bengal, Assam, Bihar, Orissa, and Andhra Pradesh. However, the Indian jute industry mainly depends on West Bengal due to the higher number of mills. The industry employs about four lakh workers, including workers dependent on the jute industry's forward and backward linkages. The average land area under raw Jute and Mesta cultivation stands at 6,62,000 hectares. The Jute industry occupies an important place in the national economy of India. Jute, the golden fiber, meets all the standards for ‘safe’ packaging because it is a natural, renewable, biodegradable, and eco-friendly product. The jute industry in India produces different types of jute products such as hessian or burlap (plain-woven fabric), sacking (loosely woven cloth), food-grade jute cloth, yarn, carpet backing cloth, blankets, decorative fabrics, floor coverings, and shopping bags.
India’s Raw Jute production trend (in lakh bales of 180 kg each)
Source: Office of The Jute Commissioner
India has an installed capacity of over 50 million spindles and 8,42,000 rotors. India is the leading jute goods-producing country globally, accounting for about 75% of estimated world production. Most of the Jute is consumed domestically due to its vast domestic market demand, with an average domestic consumption of 90% of total production. India's raw jute production is estimated at 75 lakh bales in 2025-26, up from 73 lakh bales in 2024-25, though remaining below the 90-91 lakh bale levels recorded during 2022-23 and 2023-24. Over the past decade, production has largely ranged between 60-102 lakh bales annually, with the highest output of 102.5 lakh bales recorded in 2011-12.
Total supply, including opening stock and imports, is estimated at 107.05 lakh bales for 2025-26, against a total demand of 82.5 lakh bales, comprising 72 lakh bales of mill consumption, 10 lakh bales of domestic consumption and 0.5 lakh bales of exports. The closing stock for the year is estimated at 25 lakh bales, reflecting a comfortable supply position to meet the jute industry's raw material requirements.
Export Trend
India’s Jute Exports Trend (US$ million)
Source: Department of Commerce, National Jute Board, Indian Jute Mills Association
India's jute exports during April 2025-March 2026 (FY26) were led by other jute manufactures, valued at Rs. 1,322.17 crore (US$ 151.33 million), followed by jute hessian at Rs. 982.45 crore (US$ 112.46 million) and floor coverings of jute at Rs. 666.85 crore (US$ 76.32 million) on a volume of 95.99 lakh sqm. Raw jute exports stood at Rs. 220.35 crore (US$ 25.22 million) on a volume of 22,684 tonnes, while jute yarn contributed Rs. 152.90 crore (US$ 17.50 million) on 11,206 tonnes, reflecting the continued dominance of value-added jute products in India's export basket. During April-June 2026 (Q1 FY27), other jute manufactures remained the leading category at Rs. 336.87 crore (US$ 35.46 million), followed by jute hessian at Rs. 226.75 crore (US$ 23.87 million) and floor coverings of jute at Rs. 169.35 crore (US$ 17.83 million) on 18.45 lakh sqm. Jute yarn exports were valued at Rs. 38.28 crore (US$ 4.03 million) on 1,769 tonnes, while raw jute exports remained modest at Rs. 0.57 crore (US$ 0.06 million) on just 30 tonnes, underlining that processed jute products continue to drive the bulk of India's jute export earnings.
Export Destinations
The USA was the leading destination for India's jute exports during April-June 2026, accounting for a 23.48% share worth US$ 19.08 million, driven primarily by floor coverings of jute and jute hessian. Ghana followed at 9.69% (US$ 7.87 million), almost entirely on account of other jute manufactures, while France contributed 8.74% (US$ 7.10 million), also led by other jute manufactures. Other significant destinations included the UK (5.71%; US$ 4.64 million) and Germany, (5.33%; US$ 4.33 million), both driven by a mix of jute hessian and other manufactures. Cote d'Ivoire accounted for 4.24% (US$ 3.45 million), driven largely by other jute manufactures, followed by Netherlands (4.16%; US$ 3.38 million) and Australia (3.32%; US$ 2.70 million). The UAE (2.47%; US$ 2.00 million), Saudi Arabia (2.13%; US$ 1.73 million), Spain (1.92%; US$ 1.56 million) and Sweden (1.88%; US$ 1.52 million) were among other notable markets, along with Canada (1.69%; US$ 1.38 million), Italy (1.40%; US$ 1.14 million), New Zealand (1.27%; US$ 1.03 million) and Belgium (1.07%; US$ 0.87 million), reflecting a geographically diversified export basket spanning North America, Europe, Africa and West Asia.
Country-wise share of India’s jute exports FY27 (Till June 2026)
Source: NIRYAT, National Jute Board
Government Initiatives
Government initiatives and recent policy support are playing a key role in strengthening india’s jute exports and overall sector growth. The recently announced national fibre scheme aims to promote self-reliance in natural fibres like jute, improve fibre quality and productivity, and strengthen the domestic fibre ecosystem, which is expected to enhance export potential and competitiveness. At the same time, the government is implementing the national jute development program (NJDP), which includes schemes such as market development, diversification, capital subsidy, and production-linked incentives to support exporters and boost value-added jute products. Additionally, measures like mandatory packaging of food grains in jute, minimum support price (msp) for farmers, and support for participation in international trade fairs are helping expand market access and promote jute exports globally.
For the modernization and development of the jute industry in India, the National Jute Board has implemented several schemes and initiatives. Some of the schemes meant for the improvement in production are Improved Cultivations and Retting Exercises (ICARE), Jute Diversifications Scheme, Jute Resource-cum Production Centre (JRCPC), and Jute Retail Outlet scheme for exposure to products and artisans.
The Market Development and promotion, Domestic Market Promotion Activities (DMPA), and other publicity and promotion activities and schemes are meant to increase the sales and exports of jute products in India.
The Union Cabinet on January 22, 2025 approved a minimum support price of Rs. 5,650 (US$ 65.95) per quintal for raw jute for marketing season 2025-26, an increase of 6% or Rs. 315 (US$ 3.68) over the previous MSP. The new MSP ensures return of 66.8% over all-India weighted average cost of production and will benefit growers, Union Minister for Commerce and Industry, Mr. Piyush Goyal said.
MSP for Raw Jute, FY 2026-27
The government has fixed the MSP of raw jute at Rs. 5,925 per quintal (US$ 62.38) for FY 2026-27, ensuring a 61.8% return over the all-India weighted average cost of production. This marks an increase of around 147% from the FY 2014-15 MSP of Rs. 2,400 per quintal, with the total MSP amount paid to jute farmers rising from Rs. 441 crore (US$ 46.42 million) during FY 2004-05 to FY 2013-14 to Rs. 1,342 crore (US$ 141.29 million) during FY 2014-15 to FY 2025-26.
National Jute Development Programme (NJDP)
The National Jute Development Programme, implemented by the National Jute Board with an outlay of Rs. 485.58 crore (US$ 51.13 million) from FY 2021-22 to FY 2025-26, serves as the umbrella scheme for the sector, focusing on farm productivity and farmer incomes through its two key components, JUTE-ICARE and the Jute Diversification Scheme. As of December 2025, India has 120 composite jute mills, with West Bengal housing 89, the highest among all states.
JUTE-SMART: Digital Push for the Jute Supply Chain
Since its 2016 launch, the JUTE-SMART e-governance portal has facilitated procurement of 303 lakh bales of B.Twill jute bags worth over Rs. 1,00,000 crore (US$ 10,528.98 million) through more than 20 state procurement agencies as of August 2026. The platform was further upgraded in 2026 to digitise raw jute trader, importer and jute mill registrations, alongside onboarding transporters for improved supply chain compliance.
Export Market Promotion Activities (EMPA)
Under EMPA, the government implements various activities like international-level fairs in India, international fairs abroad, international mega fairs, business delegations/ road shows/ international conferences and seminars, etc.
Market Development & Promotion Scheme (MDPS)
MDPS scheme aims to develop, promote, and expand markets for Jute and Jute diversified products within India and abroad. It provides selling, marketing, and promoting platforms/avenues to Jute Artisans, entrepreneurs, women self-help groups, Jute MSMEs, Jute exporters, and Jute millers.
Capital Subsidy for Acquisition of Plants and Machinery (CSAPM) Scheme
CSAPM scheme has been approved by the Ministry of Textiles, Govt. of India and is implemented through the National Jute Board (NJB), a statutory body under the Ministry of Textiles, Govt. of India. The objective of the Scheme is to provide financial assistance to the beneficiaries for the purchase of Jute diversified products (JDP) manufacturing machinery. This Scheme is initiated under the National Jute Development Program (NJDP) umbrella scheme of NJB during the 15th Finance Commission (2021-26).
Governing Body
National Jute Board
The National Jute Board (NJB), established under the National Jute Board Act, 2008 and operational since February 2009, functions as a statutory body under the Ministry of Textiles, Government of India, to promote and develop the jute sector. It focuses on enhancing competitiveness through research, innovation, skill development, and support for both traditional and diversified jute products. The Board implements initiatives such as technology upgradation, financial assistance, training, and welfare measures, while also promoting eco-friendly jute products in global markets. Additionally, NJB emphasizes sustainable jute processing and provides structured, timely, and digital support services to stakeholders across the industry.
Jute Product Development & Export Promotion Council (JPDEPC)
The JPDEPC was created in 1958 to advocate the exports of jute and jute products in India. The activities of the council are to arrange fairs and expositions, analyze the buyer-seller market, and act as a registration authority for exporters. The management of the council is supervised by a committee of 12 people, two of whom were nominated by the government of India. Presently, the council has 250 members covering various segments of manufacturing and trading of jute products.
FAQs
The USA leads jute exports with a 23.48% share worth US$ 19.08 million during April-June 2026, followed by Ghana (9.69%) and France (8.74%). The UK, Germany, Cote d'Ivoire and the Netherlands also feature among key markets for Indian jute products.
India's jute industry recorded exports worth Rs. 3,344.72 crore (US$ 382.83 million) during FY26, led by other jute manufactures and jute hessian. During April-June 2026 (Q1 FY27) alone, jute exports totalled Rs. 771.77 crore (US$ 81.25 million), reflecting sustained demand across the jute export market.
Other jute manufactures and jute hessian remain the dominant categories in India's jute exports, followed by floor coverings of jute, jute yarn and raw jute. This reflects the continued strength of jute diversified products (JDPs) within the jute industry's export basket.
Jute diversified products, including other jute manufactures, drove the bulk of export earnings, with this category alone valued at Rs. 336.87 crore (US$ 35.46 million) during Q1 FY27. Schemes like the Jute Diversification Scheme and CSAPM continue to strengthen JDP manufacturing capacity for exports.
West Bengal remains the dominant hub for India's jute industry, housing 89 of the country's 120 composite jute mills. Assam, Bihar, Orissa and Andhra Pradesh are the other major jute-producing states supporting the jute export market.
Jute's natural, renewable and biodegradable properties position it strongly amid rising global demand for sustainable packaging, supporting continued growth in Indian jute products exports. The national fibre scheme further aims to strengthen fibre quality and productivity to meet this demand.
The National Jute Development Programme, with an outlay of Rs. 485.58 crore (US$ 51.13 million) supports farm productivity and diversification through JUTE-ICARE and the Jute Diversification Scheme. The MSP for raw jute has also been raised to Rs. 5,925 per quintal (US$ 62.38) for FY 2026-27, strengthening the jute export market.
Value-added jute diversified products, including other jute manufactures and jute hessian, continue to drive the bulk of India's jute exports, together accounting for the majority of export earnings in Q1 FY27. Schemes like MDPS and EMPA further support market expansion for these products globally.
The USA, Ghana and France are the leading markets for Indian jute products, together accounting for over 41% of exports during Q1 FY27. The UK, Germany, Netherlands and Australia also contribute meaningfully to the geographically diversified jute export market.
India's jute industry is well-positioned for continued growth, supported by its position as the leading global jute goods producer accounting for about 75% of world production. Continued government support through NJDP, JUTE-SMART digitisation and rising MSPs is expected to further strengthen the jute export market outlook.
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