Jute industry

The jute trade is centred mainly around Bangladesh and the Indian State of West Bengal. The major producing country of jute is Bangladesh, due to its natural fertile soil. Bengal Jute was taken to Europe early in the 17th century by the Dutch and the French and later by the East India Company to Britain. By the 1790s a much larger trade had developed in the Scottish city of Dundee, the European home of jute spinners. Introduced to the British by the East India Company, crude fibre was the bulk still exported from Bengal after 1790, but a thriving trade did not really begin until after 1850 through mechanised processing, to meet rising demand. Raw jute was imported from Bengal by the British East India Company. British Jute Barons grew rich processing jute and selling manufactured products made from jute. Dundee Jute Barons and the British East India Company began to set up jute mills in Bengal and by 1895 jute industries in Bengal overtook the Scottish jute trade. Many Scots emigrated to Bengal to set up jute factories. More than a billion jute sandbags were exported from Bengal to the trenches during World War I and even more during WWII and also exported to the Americas, especially the United States southern region to bag cotton and coffee. It was used in the fishing, construction, art and in the arms industry. India, China, Thailand, Myanmar also produce Jute in low quantities. India is one of the largest importers of Jute in South Asia and also produces processed jute products in the world, while Bangladesh is the largest producer and exporter of raw jute. Therefore, the local price of raw jute in Bangladesh is the international price. Ironically, the local price of jute goods produced in India set their own price.

As an input to the jute manufacturing (goods) industry, the supply for jute is derived from the demand. Nearly 75% of jute goods are used as packaging materials, burlap, gunny cloth, (hessian), and sacks. Carpet Backing Cloth, the third major jute outlet, is fast growing in importance. Currently, it consists of roughly 15% of the world's jute goods consumption. The remaining products are carpet yarn, cordage, felts, padding, twine, ropes, decorative fabrics, and heavy duty miscellaneous items for industrial use.

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