JUTE SACKING

Introduction

When the jute industry started in India, one of the earlier developments was the manufacture of jute sacks.  The bulk of jute sack production is used for all types of jute bags. Sacking bags, woven wholly from jute fabrics, are available as plain and twill bags.

Jute bags, the other name for sacking bags are mainly used to pack cement, sugar and other bulky articles, which are packed in weight range from 50 to 100 kgs. These are tailored as per customer's specifications in terms of size and to meet the ever-increasing demand of jute bags in the farm sector, agro-based industries and cement industries.

The Jute Textiles Industry occupies and important place in the national economy. It is one of the major industries in the eastern region, particularly in West Bengal. It supports nearly 4 million farm families, besides providing direct employment to about 2.6 lac industrial workers.

The jute industry is labor-intensive and contributes about Rs.1,200 crores annually to the export earnings. The following table gives the state-wise location of the various composite mills located in India.

                      Source: www.texmin.nic.in

Indian Jute Industry

Jute, the 'Golden Fiber' as it is called, is a plant that yields a fiber used for sacking and cordage. Known as the raw material for sacks the world over, jute is truly one of the most versatile fibers gifted to man by nature that finds various uses in the form of Handicrafts. Next to cotton, jute is the cheapest and most important of all textile fibers.

Jute is being cultivated in India for centuries. The landmark in the history of jute industry in India dates back to 1854 when the first jute mill as set up by George Auckland at Rishra in Hoogly district of West Bengal. Jute is predominantly a crop of eastern India.

The production process in the jute industry goes through a variety of activities, which include cultivation of raw jute, processing of jute fibers, spinning, weaving, bleaching, dyeing, finishing and marketing of both raw jute and its finished products.

Currently the production of the fibre in India is around 100 lakh bales and about 73 jute mills are operating in the country at present. Besides, there are several small scale industries in the decentralized sector producing handicrafts, decoratives, twines, pulp & paper from jute and allied fibers and particle board from jute stick.

India: Industry Milestones

·         The largest producer of raw jute in the world.

·         The biggest manufacturer of jute goods in the world.

·         The capacity to manufacture the widest range of products, tailored to customers' requirements.

·         Comprehensive and world class research and development facilities in the area of jute agriculture, product development and machinery design.

·         Highly quality conscious employing most modern facilities for TQC.

·         Export history of raw jute and jute manufactures dates back to over 100 years.

·         Highly developed infrastructure like ports, shipping facilities etc.

·         A vibrant jute industry oriented to provide maximum customer satisfaction.

·         Indian Jute Industry has the capacity to produce and meet the International demand for food grade Jute bags and cloth.

·         Food grade Jute Bags and cloth manufactured in India - are a boon in the context of global environmental and ecological concern. Indian food grade jute bags have a twin edged advantage: preservation of food in the most natural way.

Jute is a rainy season crop and hence sown from March to May according to rainfall and type of land, and harvested from June to September depending on whether the sowings are early or late.

Major Growing Areas

Jute thrives best in damp heat, and the climatic conditions prevalent in West Bengal in India are well suited for its cultivation. Indian states ideally suitable for the cultivation of jute are:

·         West Bengal

·         Bihar

·         Assam

·         Orissa

·         Uttar Pradesh

Mesta, or Kenif, botanically known as Hibiscus Cannabinus, is also grown in these areas as a textile fiber. Mesta is a coarser, more brittle fiber, and is used by the jute mills in admixture with jute to obtain certain desired properties.                                        

Types of Jute Sacks

The sizes are custom-fitted according to specifications provided by the customer.  However, there are standard sizes already estimated for specific kinds of products -- as there are quantity-requirements that count by the number of sacks.

In high demand today are jute sacks that come in the form of hydrocarbon-free bags -- purposely for agro-based products such as sugar, cocoa, coffee, rice, potato, onions, peanuts, wool and other agricultural products.

This type of jute sack is treated with vegetable oils which are non-toxic and do not contain compounds that could produce off flavors and tastes when in contact with edible materials. 

Aside from eliminating the harmful effects of hydrocarbon, the process makes it free from any kerosene smell as well. 

Different categories of sacking are-

·         A-Twill - A double warp hemmed twill bag of 112 x 76.5 cm size and weighing 1190 gm with strips woven along the length of the bag and used for packing sugar.

·         B-Twill - A double warp hemmed twill bag of 112 x 76.5 cm size and weighing 1020 gm. Capacity to hold 95 kg of food grains. With three blue stripes woven along the bag and used for packing food grain

·         L-Twill

·         D.W. Flour – For packing of flour, maize etc

·         D.W. Salt

·         D. W. Nitrates

·         Heavy Cees – For packing of tobacco leaves, spices etc

·         Light Cees

·         Sydney Woolpacks

·         Australian Woolpacks

·         Australian Cornsacks

·         New Zealand Cornsacks

·         New Zealand Woolpacks

·         Fine Twill Cloth

·         Cement Bags

Benefits of Jute Sacks

The strength and durability of jute sacks as well as the safety that the hydrocarbon-free ones offer, makes them truly dependable sacking material worth the purchase of manufacturers and consumers.

Sacking is heavy, loosely woven cloth in plain or twill weave, weighting from 15-20 ozs per yard of different widths.  Sacking cloth is used for jute bags to pack food grains, sugar and cement etc. in a weight range from 50 to 100 kg. 

Heavy duty jute bags/sacks are very much popular for packaging agriculture commodities.

Since jute harvested in Bangladesh is the strongest in the world, jute bags made in Bangladesh last many years.

Consuming Segments

The Jute packaging Materials Act (JPMA) was enacted in 1987 and since then it is continuing. Under the current provisions of the JPMA, entire quantities of food grains and sugar have to be compulsorily packed in jute sacks.

Sacking bags, specifically used for the purpose of storing agro-based products, are known as Hydro carbon free bags that have been treated with vegetable oils to destroy the harmful effect of hydrocarbons. Thus sacking bags have great demand not just in the cement industry but also in the agro-based industries.

Features of Hydrocarbon Free Jute Bags

Safest packaging material for agro-based products, Hydrocarbon free Jute Bags are being increasingly used in place of regular jute bags.

Hydrocarbon free bags are actually Sacking Bags that have been guarded against any contamination of hydrocarbons. Such bags are also free from any kerosene smell and hence are specifically used for packing sugar, coffee, cocoa, rice, potato, onions, peanuts, cotton, wool, etc. These bags are made from jute, treated with vegetable oil.

Hydrocarbon-free food grade bags are totally safe for storing edibles. Eco-friendly and bio-degradable, these bags are safely processed with vegetable oil. Manufacturers and exporters ensure that their bags meet international standards of quality.

The ingredients used as batching oils are non-toxic and approved for use in packaging materials that come in contact with food materials and do not contain compounds that could produce off-flavors or off-tastes in food materials packed in jute bags.

No undesirable odors or odors untypical of jute are present. No unacceptable odor develops after artificial ageing of the bags.

Production and Utilization

The basic jute products manufactured in jute mills are :
Hessian Cloths, sacking cloths, Jute Yarn, Carpet Backing Cloths (CBC), Bags, Twines, D.W. Tarpaulin/ P.W. canvas, Shopping bags, Geo-textiles and Gaps, Jute Mats and floor coverings, Tobacco sheets, carpets etc.

   (Source: Jute Commissioner of India, www.texmin.nic.in)

The fall in the production in 2006-07 over the previous year was due to the strike in the jute mills in West Bengal from January 2007 till March 2007.

Hessian is a single wrap plain weave jute fabric being manufactured in various widths and weigh up to a maximum of 500 g/m.

A jute sack is woven wholly from lower grades of jute fabrics and is usually available as plain and twill. The latter is produced by passing the weft threads over one and under two or more warp threads resulting to a type of textile patterned with diagonal lines.  Known in the trade as "heavy goods," jute sack is loosely woven, weighs from 12 to 20 ounces a yard and comes in different widths, depending on the kind of goods intended to be packed. Jute sacks are usually utilized to pack bulky articles weighing 50 to 100 kilograms; more commonly are cement, sugar, wheat and coal. 

Trend in Domestic Consumption of Jute Goods

           (Source: www.texmin.nic.in)

Trade Scenario

During 2005-06, the total export of Jute products rose by 33% to 285,800 MT. In 2006-07, the export was 242,800 MT, lower by 15%. This fall was mainly attributable to fall in exports of major exportable items like Hessian and Diversified Jute Products.

Sacking, however, showed an increasing trend in 2006-07. During March 2007, overseas business remained dull. With closure of majority of the jute mills in West Bengal due to strike in the jute industry between 5^th January, 2007 and 8^th March, 2007, production and export were adversely affected.

During 2007-08 (up to November 2007), total export of Jute goods have been 142,000 MT. USA, Egypt, Belgium, Turkey and Syria had been the five major importing countries for Indian Jute goods, accounting for about 46% of the export in value terms.

Market Scenario

The apex body of the jute mill owners in Kolkota is Indian Jute Mills Association (IJMA). Jute sector faces increasing challenge from synthetics.

Jute Sack exports are encouraged with Export Promotion Council (EPC) and External Marketing Assistance (EMA) as per the trade requirements. Concessions are available under the Technology Upgradation Scheme.

The jute industry had been enjoying 100 per cent mandatory packaging in food grain and sugar industry under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 until few years ago. Thereafter the Government decided to dilute the order as the industry can no more function in a protective environment.

The Government has notified 100% compulsory packing for food grains and sugar in jute bags for the year 2007-08 (July-June).

The industry has huge potential to emerge as a major foreign exchange earner for the country, particularly at a time when the global demand is shifting towards natural fibres. The fibre has got a distinct advantage over synthetic alternatives in terms of its environment friendly image. There is need to diversify the usage of jute fibre. There should be proper efforts to develop new technologies, processes and value-added products in the non-textile field by developing jute-based substitutes. As part of strategy, product development and market development should go on simultaneously.

Jute Sacking Value Chain

Jute has traditionally been a major industry in West Bengal, providing substantial employment in the state. However, performance of the industry has declined over the years due to considerable shrinkage in demand for traditional jute products (mainly used for packaging food grain, sugar, cement and fertilizer).

Moreover, due to inadequate investments, the level of technology in many of the existing units has become obsolete. The Indian jute sector, comprising the organized jute industry and a large number of decentralized/cottage units, has now reached the stage of producing materials, which are not only durable, but also attractive from the aesthetic sense. Numerous end-uses have been found for the golden fibre to meet the requirements of the connoisseurs.

Jute, the golden fibre of nature, is an annually renewable biodegradable product with excellent thermal and electrical insulation properties. Jute is not only an excellent packaging material but also has a wide open future. To offset the cost disadvantages associated with transportation of jute sacks to the end-users, establishment of jute mills in other parts of the country has been cited as an urgent measure.

End uses of Jute sacks include usage by the food processing industry, export-packaging, cement, food products packing and others packaging uses.

Advantages of using Jute Sacks over Polypropylene / Polyethylene

Jute is environment-friendly and completely biodegradable. While synthetics posses a number of hazards. The toxic effects of synthetics are so serious - both the production and disposed aspects of it - that many western countries have banned it for use in food products.                                                                                  

Jute is indigenously produced while synthetic bags are manufactured from polyester granules whose manufactures poses a number of hazards. The noxious gases, particles and volatile organic compounds emitted create pollution and slow poisoning the earth during its disposals.

Jute sacks have porosity, easily withstand the high temperature and much stronger than poly-sacks. Jute sacks can be re-used and can be easily repaired.       

Jute sacks have also advantages over synthetic bags as more stack-ability, does not easily tear, space utilization, and many more.

Jute Sack Prices History

The Central Trade Union called a strike from 5 January, 2007, which continued till 8 March, 2007. Sacking prices are directly influenced by Jute prices. Any factor influencing the Jute industry affects Jute prices.

Sack demand is affected by the policies and decisions taken by the Government. The jute industry had been enjoying 100 per cent mandatory packaging in food grain and sugar industry under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987 until few years ago. Thereafter the Government decided to dilute the order as the industry can no more function in a protective environment. The Government has again notified 100% compulsory packing for food grains and sugar in jute bags for the year 2007-08 (July-June).

As per Section 3(3) of Jute and Jute Textiles Control Order, 2000, the ex-factory fair price of B. Twill Jute Bags of 665 grams of the size 94cm x 57 cm for each delivery month is worked out by the Office of the Jute commissioner, Government of India, Ministry of Textiles. These prices may be fixed considering linkage of raw jute on Jute Corporation of India derivative MSP price of the crop year.

As per Section 4 of Jute & Jute Textiles Control Order, 2000, the manufacturers are also directed to produce B. Twill bags of 665 grams of size 94cm x 57 cm and conform in all other respects to the current BIS specification.

The price fixed shall be exclusive of duty of excise, cess payable under Jute Manufacture Cess Act 1983 and Sales Tax which shall be paid in addition to the ex-factory price by the purchaser.

Development Organizations in the Jute Sector

Jute Manufacturers Development Council (JMDC)

It is the national agency for promotion of Indian Jute, created by an Act of Indian Parliament in 1983, it is chaired by the Secretary, Government of India, and Ministry of Textiles. The Council's prime objective is to provide better marketing of jute products, although it addresses itself to multi-dimensional activities.

JMDC is a body comprising of representatives from all sectors including growers of jute and producers & exporters of jute products, experts, workmen engaged in production as well as different departments of Government of India and local governments of jute growing States.

Office of Jute Commissioner

The Jute Commissioner looks after orderly development and promotion of the jute industry in India. He has been discharging both regulatory and developmental functions. This is not only includes jute mills, but covers right from raw jute marketing up to the finishing stage of jute goods production including development of machineries and accessories used in jute manufacturing units. The Jute Commissioner exercises regulatory powers under Jute & Jute Textiles Control Order, 2000.
 
The primary functions of the office are: 

 1. To advise the government on all matters pertaining to raw jute, jute industry, modernization and diversification programme in both organized and decentralized sectors, development of jute machinery industry, etc.

 2. To promote orderly exports through operation of a voluntary scheme of jute goods export targets and formulation of policy measures for achievement of target set.

 3. To help the Bureau of Indian Standards of develop appropriate quality standards for different items of jute goods.

 4. To inter-act with different R & D organizations for intensification of market oriented research and development programme for the benefit of the jute sector keeping in view the technological development and consumers preferences. 

 5. To assist different public and state sector bulk consumers to obtain their requirements of jute bags in time for packing of food grains, fertilizers (urea), sugar etc. In particular, the implementation of the statutory scheme for supply of B.Twill bags by jute mills to FCI and State food grains procuring agencies at cost-plus prices under Jute & Jute Textiles Control Order, 2000 is looked after by this office. 

It has various other functions for the development of the jute industry.

National Center for Jute Diversification (NCJD)

It was established in 1994 under the Chairmanship of Secretary (textiles) to give focused attention to the diversification efforts in the Jute sector. NCJD is required to consolidate R&D results of various institutes in jute and textiles and transfer these to the entrepreneurs for commercial production. It co-ordinates with various agencies and helps the entrepreneurs in arranging technical, financial and infrastructure support and encourages them to take up production and marketing of jute diversified products.

The Jute Corporation of India Ltd., Kolkota

It was established by the Government of India in 1971 to function as the official agency in implementing its policy of providing minimum support price to the jute growers and to serve as stabilising agency in the raw jute sector.

From a small beginning, JCI spread its network gradually establishing a large number of procurement centres in the seven major jute growing States in the country.

The activities of the Corporation, as decided from time to time, are

1.      To conduct purchase operations to ensure maintenance of support price :

2.      To procure and maintain a buffer stock of fiber ( including imported fiber, if necessary );

3.      To conduct commercial operations in a judicious manner ;

4.      To import fiber, as and when necessary to supplement Indigenous availability ;

5.      To export fiber ( to the extent authorized by the Government ) ;

6.      To process and export jute goods ; and

7.      To undertake export promotion measures for jute goods ; 

International Jute Study Group (IJSG)

It is an intergovernmental body set up under the aegis of UNCTAD to function as the International Commodity Body (ICB) for Jute, Kenaf and other Allied Fibres. The objectives of the Group are:

1.      To provide an effective framework for international cooperation, consultation and policy development among members with regard to all relevant aspects of the world of jute economy;

2.      To promote the expansion of international trade in jute and jute products by maintaining existing markets and by developing new markets, including the introduction of new jute products and the development of new end-uses;

3.      To provide a forum for the active participation of the private sector in the development of the jute sector;

4.      To address the issues of poverty alleviation, employment and development of human resources, particularly women, in the jute sector;

5.      To facilitate the improvement of structural conditions in the jute sector through improvement of productivity and quality, and promotion of the application of new processes and technologies;

6.      To create and increase awareness of the beneficial effects of the use of jute as an environmentally friendly, renewable and biodegradable natural fiber;

7.      To improve market intelligence with a view to ensuring greater transparency in the international jute market in collaboration with other organizations, including the Food and Agricultural Organization of the United Nations (FAO).

Indian Jute Industries Research Association [IJIRA]

It was established in 1937, the first co-operative R & D organisation rendering services to the Indian   Jute Industry and  Government Agencies who are promoting Indian Jute in export and domestic market.

With beginning as IJMARI in 1937, the institute has grown over the years and moved to its current imposing premises in 1952. The Institute was opened by the Hon'ble Prime Minister of India -  Pandit Jawaharlal Nehru. The first founder Director of the Institute was Dr. G W Mac Milan

IJIRA has since grown to be a Premier R & D Organization on Jute, truly a World Class-in infrastructure and sophistication, in research and resource development, and in capabilities and commitment.

Other jute associations include National Jute Manufacturers Corporation (NJMC), Kolkota, Birds Jute & Exports Ltd, Institute of Jute Technology etc

Current Scenario

The domestic jute industry has been unable to shake off its lean patch with slide in all aspects of trade. The industry has struggled in production and dispatch and in exports as well

·         Jute products have a market of Rs 6,000 crore in the country

·         The government has removed duty on imports of raw jute and jute products from Bangladesh, Pakistan, Nepal and China

·         With zero duty, imported materials are Rs 250-300 a tonne cheaper than the domestic products

·         The jute industry has already lost the burgeoning fertilizer and cement sectors to the synthetic packaging materials

To add to its woes, the government has removed duty on imports of raw jute and jute products from Bangladesh, Pakistan, Nepal and China.

The internal consumption of jute products reached its peak in 2001-02, when it touched 1.5 million tonnes and subsequently kept falling for the next five years to 1.1 million tonnes. Industry observers attributed this fall to the use of synthetic products.

The jute industry has already lost the burgeoning fertilizer and cement sectors to the synthetic packaging materials. All fertilizer and cement products are now being packed in PP sacks and HDPE bags. Here also the jute industry has registered a protest with the government to bring these two sectors back to the jute fold as the practice is a violation of the JPMA norms.

In the exports front, despatches of Hessian, sacking, CBC, yarn and twine registered a fall of around 41 per cent from 229,000 tonnes in 2002-03 to 161,000 tonnes between April and December 2007. The biggest fall is that of yarns and twines, which has come down from 1.14 lakh tonnes to 70,000 tonnes.

The exports of sacking, Hessian and CBC have suffered mostly because of goods from Bangladesh cutting into the European and the US markets at lower prices as the appreciating rupee made Indian goods uncompetitive in the global markets.

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