Over 40 lakh farmers and nearly four lakh mill workers depend on the jute industry for their livelihood.

In a move that may bring about a sea change in the lives of over 40 lakh distressed farmers and workers, the Union Textiles Ministry has urged State governments to help diversify the ailing jute industry by exploring new avenues for promotion.
The Centre has thought of various products that can be made from jute, such as waste-paper baskets, folders, laptop bags, and moulded item. Most importantly, jute geo-textile products can be used in civil engineering works such as road construction and protection of hill slopes.
“An important characteristic of jute is that it absorbs and retains moisture. This makes it very effective in the construction of roads and protection of hill slopes, by inducing vegetation growth. It also helps in stabilising sand dunes,” a government official said.
Apart from these products, the government has asked the States to promote jute bags for students. “This move will help generate employment,” the official said. Union Textiles Minister Santosh Kumar Gangwar has written to several Chief Ministers requesting that they consider introducing jute school bags.
Observing that the industry supports over 40 lakh farmers and 3.7 lakh jute labourers, Mr. Gangwar wrote: “To make the industry competitive and sustainable, it is necessary to diversify and move away from the traditional activities and products. In this context, I seek help in the promotion of diversification in the jute industry. You may please consider introducing jute bags for school children under the HRD schemes in your State.”
The proposal, initially suggested by activist Gouri Shankar Jain from Odisha, has been made at a time when the industry is beset with scams and growing unrest among jute farmers and mill workers.
India accounts for an estimated 70 per cent of the world’s total production of jute products. Over 90 mills are currently operational, 67 in West Bengal alone. The rest are in Bihar, Assam, Tripura, Uttar Pradesh and Andhra Pradesh.
However, the industry’s overdependence on government orders is considered a major factor behind the current state of affairs. The government buys jute sacks worth Rs. 5,000 crore a year for packaging of food grains and sugar under the Public Distribution System (PDS).
Another cause of worry is that export of jute products has been badly hit after large-scale import from Bangladesh, which offers 10 per cent subsidy on domestic jute products and huge funding to its mills and exporters.