How Indian Jute Bags Exporters Could Make A Comeback After Lockdown

By Author: Rahul Sethi
Total Articles: 33
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West Bengal has 70 jute mills out of India's total of 90. More than 60% of the country's jute demand is met by Bengal. However, since the lockdowns between 2020-2021 during the COVID-19 pandemic, the industry has suffered the most crucial phase of crisis and uncertainty with minimal aid from the Government.

Today several jute mills in West Bengal have closed as a result of uncontrollable corporate losses. And at the feats of it, workers who have been handed a “Suspension of Work” letter, have no idea of the future. A time of darkness that can only prosper from the rapid action of homegrown Jute Products brands and domestic consumer demand.

How Jute Bags Exporters Are Facing The Future After Lockdown Mayhem

While the revenue from jute exports took a serious dip at the start of the current fiscal year 2021-2022, it is now on the mend in 2022-23.

Because the price of raw jute is finally dropping to some extent, compared to the unrealistic surge in the initial phase, reportedly up to 32% added with freight costs, that dipped the global demand in FY21. This led the Indian Jute Industry and ...
... jute bag exporters to fall into a "negative territory". However, by the end of the July-January period, growth had slowed to 9%.

Except for jute and jute goods, all exports grew in the first seven months of FY22, according to data from the Export Promotion Bureau (EPB). Buyers, on the other hand, are hesitant to pay the extra cost of procuring raw materials, which are still very expensive.

The Packaging Industry And Jute Bags Suppliers

The West Bengal jute industry primarily supplies its products to the Indian government for use in food grain packaging. With the rise in raw material prices, the price of these bags increased as well. As a result, in September 2021, the Union government issued an order capping raw jute and B-Twill (the gunny bags used to package food grains) prices at Rs 6,500 per quintal.

As of June 2022, raw jute costs approx. Rs 7,200 per quintal in the Bangladesh markets. The cost has more or less "forced" jute mills to pay a higher price to keep the mills running. The Indian Jute Mills Association has repeatedly requested the West Bengal Government to review the price cap and raise it to Rs 7,200 to level up to the market capital, where they don't have to suffer heavy losses.

The Global Sustainable Industry To The Rescue

Jute bags are becoming a rising demand in the domestic market and several homegrown Indian brands have worked with the golden fibre to make it more appealing to people. But today, the global market is what needs to save the day.

The Jute Industry is not at a stalemate. The global outlook appears to be promising. The global jute bag market was valued at $2.07 billion in 2020, according to Research and Markets, and is expected to reach $3.1 billion by 2024. The need to find alternatives to plastic is growing, bringing jute shopping bag manufacturers to the fore.

Jute Bags Exporters Catering To The Fashion Industry

While the growing price is making jute bag suppliers at a loss, it is also paving the way for new business prospects in the overseas markets. Jute is among the safest and most attractive alternatives to leather, which makes the golden fibre the most valuable in the “vegan fashion” industry.

There are many luxury brands and fashion designers who have worked with this material bringing it closer to the elite and much appreciated.

Tote bags have now become a symbol of eco-consciousness, combining style and utility. As a highly durable natural material, jute is considered an all-rounder accessory that is one of the core attributes that indicates that Green Industrialization is possible. The simple, basic design of a Tote Bag, comes across the elementary stopgap, the design is perhaps the prototype of a bag, primitively.

Jute Bag Suppliers Catering To Home and Furnishing Market

Jute organisers, fabric baskets and jute upholsteries are becoming a global sensation. Many furniture makers are extensively using jute textiles for making wardrobes, cabinets and seaters. This artistic phase of the industry is bringing lucrative advantages to the West Bengal jute industry since it continues to be the largest supplier along with Bangladesh.

Optimism for the Home Textile Industry is helping it bounce back with conscious consumers looking to choose deliberate products that aid artisans and industries, while also giving back to nature. Home decor, hotels, restaurants and pubs all have a fair share in this industry as the prosthetic customer. As a result, home textiles are one of the fastest-recovering retail sectors in the aftermath of the pandemic.

According to industry reports, India's home furnishings and decor industry is expected to grow 20-25% in FY22, with healthy margins, setting the stage for large trading volumes in the coming months.

How Indian Jute Bag Exporters and Suppliers Can Be Connected To The Global Market

Technical Textiles are functional fabrics engineered for use across various industries. Their global market is anticipated to cross $200 billion by 2022. HomeTech is a leading segment, featuring products like fiberfill, blinds fabrics, mosquito nets, and furniture fabrics. In India technical textiles are set to occupy a significant share of the entire textiles market by 2025 – giving rise to new modern manufacturing units, potentially also leading to the evolution of many traditional production methods like handloom towards the niche luxe category.

eCommerce Technology has normalised the comfort of online shopping with worldwide shipping. Digital natives and immigrants alike are moving past the ‘touch feel’ inhibitions of online shopping, and are more willing to trust product quality, reviews, and virtual displays, leading to exponential growth in the segment in the past few years. And the convenience is manifested by doorstep delivery, which has impacted purchase decisions immensely.

Smaller stores in dense neighborhoods can benefit from online B2B platforms that ensure end-to-end ordering to doorstep delivery, as well as access to credit lines through anchor-led supply chain financing programmes. This can assist MSMEs in significantly expanding their businesses at a time when the home textile industry is on the verge of a boom.

Author Bio:

Earthyy Bags, one of India's most well-known jute bag exporters and suppliers, employs the author. The only organisation that is consciously responding to Green Industrialization projects by emphasising environmentally friendly manufacturing methods.