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Dominance in jute industry, 75% of the world's production, then why is the country lagging behind in selling?
Samira Vishwas | September 9, 2026 10:24 AM CST

India is the largest producer of raw jute in the world. In India, jute is known as 'golden fiber'. The identity of golden fiber in the country is linked to the livelihood of millions of people. Data released by the Textile Ministry shows that in the financial year 2025-26, India produced 76 lakh bales of raw jute and 12.80 lakh metric tons of jute goods.

More than 75 percent of the world's jute is produced in India. West Bengal is the largest center of jute production. India is also the largest consumer of jute. This is the reason that despite good production, 85 percent of jute is consumed within the country, India is able to sell less than 14 percent of the product to the world.

How big is India's jute industry?

India is the largest producer of raw jute. More than 3.7 lakh workers work in India's jute industry. As of December 2025, there are 120 jute mills operating in India. West Bengal is the center of jute production, it has the largest number of jute mills.

In India, decorative items and stylish bags are also made from jute. Photo Credit: Textile Ministry

How much jute did India sell to the world?

Lakhs of farmers are associated with the jute industry in India. India has so far sold 22,700 metric tonnes of raw jute in the financial year 2025-26, worth around Rs 225.11 crore. India has sold 1,71,300 metric tonnes of jute products, earning a total of Rs 3,155.27 crore.

Why is India not able to sell jute abroad?

India is the largest jute goods producing country in the world. India alone produces about 75 percent of the world's total projected production by July 2026. Only 13.36 percent of the goods manufactured in the country are sold outside. The reason is that the consumption of jute is highest in the country itself.

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A farmer preparing jute fibers in Nadia district of West Bengal. Photo Credit: PTI

How much jute can we send abroad?

In the financial year 2025-26, India produced 12.80 lakh tonnes of jute goods. Out of this, 12.05 lakh tonnes i.e. 94 percent of the goods were consumed within the country. Only 1.71 lakh tonnes of goods went out. Its price was Rs 3,155.27 crore. The export of raw jute was even less. India has sent only 22,700 tonnes of raw materials abroad. Its price was Rs 225.11 crore.

Is the government the reason for low foreign exports?

The reason for such huge consumption within the country is a government rule. Under the Jute Packaging Law, 100 percent packing of grains and 20 percent packing of sugar has to be done in jute sacks only. With this, farmers and mills get a sure market. India is completely self-sufficient in jute goods. The country's needs are fulfilled by its own production.
 

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A farmer carrying jute in Nadia, West Bengal. Photo Credit: PTI

Who is the 'leader' of India's jute industry?

India's jute industry is based on West Bengal. There are a total of 120 mixed jute mills in the country. Of these, 89 are in West Bengal alone. About 3.70 lakh workers work in organized mills and units. The livelihood of about 40 lakh farming families also depends on this.

What does the government do for jute farmers?

The government has increased the minimum support price (MSP) of raw jute to increase the income of farmers. For the financial year 2026-27, it has been fixed at Rs 5,925 per quintal. In 2014-15 it was only Rs 2,400. Jute Corporation of India purchases directly from farmers in villages. Its objective is to ensure that farmers do not suffer losses when market prices fall.

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Jute stems are kept in a pond to make fibre. Photo Credit: PTI

How is jute cultivation flourishing?

With the help of the government, work on agricultural improvement, new machines, new products and market expansion is going on under the National Jute Development Programme. The Jute-Icare scheme is providing support for seeds, machines and better milling process. Jute Raw Material Banks are being run to provide raw material at cheap rates to small artisans, women's groups and small units.

What is made of jute?

Jute is no longer limited to sacks only. Due to this, jute geotextile is being made to prevent soil on roads, river banks and hills. Its use in clothes has also increased. In the 2026 Commonwealth Games, the Indian team wore jute-viscose mixed clothes. Buying and selling of sacks is done online through Jute-Smart portal. Till now, sacks worth more than Rs 1 lakh crore have been purchased from it. With the help of Indian Space Research Center (ISRO), the crop is also being monitored through satellite and mobile app.

Why is jute special?

Jute is a cheap, strong and completely biodegradable fiber. It is being promoted in place of plastic. Due to such huge demand within the country, a major part of the production remains here. Despite producing 75 percent of the world's goods, export figures appear limited.


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