Jute weaves a success story with lifestyle goods

Gone are the days when jute was used only as a raw material to produce gunny sacks for packaging. As a new source for lifestyle products, it is driving a new wave in the fashion and handicrafts industries, owing to its eco-friendliness, in both domestic and international markets.

An all encompassing increase in demand, from various sectors such as footwear, handicrafts and apparel, home furnishing and jewellery, has benefited the Indian manufacturers.

"Jute is non-polluting, extremely durable and cost effective, making it popular among the national and international customers," said an official from Jute Manufacturers Development Council.

The increasing margins has made entrepreneur out of youngsters such as Krishnendu Datta. A graduate from National Institute of Fashion Technology, Datta now exports jute products to countries such as New Zealand and Australia.

"A quality leather bag costs about Rs 800, but a equally fashionable jute bag has just a Rs 250 tag," he said. He expects exports to increase by 200 per cent in the next two years.

The optimism is ubiquitous in the industry. Since 1999, export of jute diversified products has increased by more than 150 per cent to cross the Rs 250 crore mark last year.

Total jute exports were worth Rs 1,147 crore and set to cross the Rs 1,250 crore this fiscal. Exports to the US, the biggest market for the diversified products, has grown from about Rs 40 crore to almost Rs 125 crore over the same period.

The amount may not be as impressive as the 11-number figures boasted by the new economy sectors, but the labour-intensive jute companies provide employment to almost two lakh artisans working in 12,000 units spread across the country.

The figure will be much higher if the jute cultivating community is included. India is the largest producer of raw jute and biggest manufacturer of jute goods in the world.

The only problem that the manufacturers now face is a gradual increase in jute prices. "There has been an average 30 per cent increase in the prices of different kinds of jute available," said a manufacturer.