Jute Industry Faces Tumult: Crisis Deepens Amid Surging Prices and Policy Shifts

The jute industry is undergoing a severe crisis due to raw material shortages, high jute prices, and increased reliance on plastic packaging. Farmers are shifting to maize cultivation due to more lucrative returns, challenging the industry's stability and prompting policy changes in packaging requirements.

The jute industry finds itself amid an unprecedented crisis, characterized by a steep raw material shortage and soaring prices, as reliance on plastic bags for packaging grows. The situation deteriorated over the year, leaving the sector unsettled and questioning its future amid government policy shifts.

Originally sparked by a mismatch between raw jute availability and packaging demands, the crisis deepened as farmers pivoted to alternative crops like maize. This transition resulted from unremunerative jute prices, leading to a significant drop in jute cultivation, with acreage falling to 5.56 lakh hectares by September 2025.

Despite government interventions, including a fixed minimum support price, the sector grapples with dwindling supplies and mounting financial pressures. With raw jute prices soaring, stakeholders face severe production cuts while policymakers scramble to address the shortfall by allowing increased use of plastic substitutes in packaging. The current turmoil underscores the intricate challenges within the jute industry, demanding urgent policy revision.

(With inputs from agencies.)