The jute industry, once celebrated for manufacturing the ‘golden fibre’ of India, has long been a backbone for the eastern states like West Bengal, Assam, and much of the Northeast. However, this industry is grappling with a severe labour shortage. The partition of Bengal witnessed a split in the jute economy — the abundance of fertile alluvial soil and humid climate, coupled with sufficient drainage, aided processes like retting and blessed Bangladesh with a superior TD1 variety of exportable jute production. Traditional sources of labour from rural Bengal and Bihar have dwindled. Even with increased daily wages from Rs 370 to Rs 485, traditional mills struggle to compete with the allure of more flexible, urban alternatives.
Another bottleneck is the resistance to technological modernisation. While new power looms allow a single worker to manage multiple machines, adoption has been slow. Workers fear job loss, struggle with outdated skill sets, and often face unionised resistance to change. Unionisation, though essential for protecting workers’ rights, has its drawbacks. Lengthy negotiations over wage structures, work schedules, and technological upgrades often stall reform. In politically sensitive jute hubs like Barrackpore, such delays are often exacerbated by external interference, hindering necessary innovation.
Health and safety are pressing concerns as well. Fine jute fibre dust poses serious respiratory risks when adequate dust extraction systems are absent. Poor waste management adds to environmental degradation, making the work environment even more hazardous. Jute also faces an existential market threat from synthetic alternatives. A polypropylene bag sells for as little as Rs 10 compared to Rs 63 for its jute counterpart. While synthetic materials are non-biodegradable and carcinogenic, the lack of stringent environmental regulation and weak consumer awareness dull the eco-friendly advantage of jute. Compounding these issues is an unstable procurement system. Government procurement is meant to offer price security to mills, but the auction-based model for sale to private actors lacks consistency and predictability. This undermines investment planning and long-term sustainability for jute enterprises.
Technological advancements in Artificial Intelligence and precision agriculture are creating exciting new avenues for jute cultivation and processing. Precision farming with drones and soil sensors can now detect disease outbreaks, monitor moisture, and guide optimal harvest times. Smart retting systems enhance fibre quality while reducing environmental pollution by using AI to control water temperature and duration. Even in manufacturing, smart looms can raise output by 30%, while predictive maintenance systems track machinery health, helping reduce breakdowns and costs. Machines powered by AI offer quality assurance through real-time defect detection, ensuring consistent weaving standards.
Product diversification has also taken a leap forward. Juco, a sustainable jute-cotton blend, is growing in popularity. It broadens the use of jute from traditional packaging to lifestyle and fashion industries. Jute-based bio-composites — made by combining jute fibres with biodegradable or synthetic resins — are revolutionising sectors like automotive interiors, eco-friendly construction panels, and durable packaging. These composites are light, biodegradable, thermally efficient, and significantly reduce carbon emissions.
West Bengal remains the epicentre of India’s jute economy, housing nearly 70% of all mills. Reviving this sector here could stimulate a broader industrial renaissance. Towns like Naihati, Barrackpore, and Agarpara are prime industrial areas for jute innovation hubs and AI-integrated technology parks that could reposition the state as a global leader in sustainable materials. Assam, although abundant in raw jute, lags in processing infrastructure. With the integration of mobile processing units and AI-powered fibre grading centres, local entrepreneurs could process jute more efficiently, reduce transportation costs, and create regional value chains. The broader Northeast has ideal climatic conditions for jute cultivation. Strategic investments in these states can help reduce regional inequality and provide resilient rural livelihoods.
Effective policy can serve as the fulcrum for large-scale transformation. Implementing a stable minimum support price with direct procurement mechanisms can protect farmers from volatile price swings. A digital procurement system can ensure timely purchases and better market integration. To drive modernisation, the government must introduce incentives such as tax rebates, soft loans, and capital grants for mills embracing green technologies or AI-based innovations. India must also emulate Bangladesh’s success in jute exports, which brings in over $1 billion annually for that country. This requires aggressive branding, participation in global eco-product expos, and certification schemes that position Indian jute as a premium, sustainable product. Skill development of women can further elevate the industry. Women in rural areas have a natural affinity for precision tasks like labelling, finishing, and quality-checking. Setting up AI-integrated training centres and providing childcare facilities at workplaces could double their workforce participation and enhance community welfare.
The jute industry provides direct employment to around 3.7 lakh people in organised mills and indirectly supports nearly four million farming families. Export revenues remain substantial, with Rs 473 crore earned from sacking products and Rs 296 crore from hessian goods alone. Moreover, jute connects several sectors — agriculture, logistics, textiles, and MSMEs — forming a vital part of India’s circular economy and rural employment fabric.
In urban markets, jute is being rediscovered as a fashionable, sustainable material. AI can help start-ups analyse customer preferences, forecast demand, and manage inventories more efficiently. Jute bags, belts, and even apparel are increasingly popular among conscious consumers seeking alternatives to plastic. Similarly, in home décor and furniture, jute is now blended into upholstery, rugs, and other items that appeal to global buyers. E-commerce platforms enhanced by AI allow rural artisans to connect directly with international customers, democratising access to markets. In agriculture and infrastructure, jute-based geo-textiles are being used to prevent soil erosion and stabilise embankments. AI monitoring tools can track the deployment of these textiles in flood-prone zones, offering disaster resilience and environmental sustainability in tandem.
India’s jute industry stands at a crossroads — facing both deep-rooted challenges and immense untapped potential. Mills like the Agarpara Jute Mills, located on the banks of the Hooghly river, stand out as a beacon of hope, demonstrating what is possible when tradition meets innovation. Employing over 5,000 workers, it exemplifies the transformative possibilities that modernisation, diversification, and visionary leadership can bring to the jute sector. With the adoption of modern technology and AI, jute can transcend its past limitations and emerge as a cornerstone of India’s green future. Such a revival calls for a shared vision: farmers equipped with smartphones, mills embedded with sensors, policymakers committed to long-term reforms, and consumers who make informed, ethical choices.
Adhyaa Kulandaivel is a researcher at Cambridge Centre for International Research