Jute: Extraction
Why jute is rotted in ponds before it is spun
What this tab covers How it is mined, drilled or grown, and processed into a tradeable form: the main methods compared, their unit economics, by-products, and the companies that do this work globally and in India.Jute is an annual plant of the genus Corchorus, grown in the warm, wet floodplains of the Ganges and Brahmaputra. It is sown before the monsoon and cut a few months later. Bundles of stalks are steeped in ponds or rivers for weeks, a process called retting, which rots away the tissue around the fibre. Farmers then strip, wash and sun-dry the long golden strands. Retting needs plenty of clean water, so drought hurts quality as well as volume. Mills grade the fibre and spin it into yarn and cloth.
Jute is a rainfed annual crop of the hot, humid Ganges-Brahmaputra delta, grown almost entirely by smallholders in Bangladesh and the Indian states of West Bengal, Assam and Bihar. Yields are similar in both countries at about 2.6-2.9 t of fibre per hectare (FAOSTAT 2024). The crop competes for land with aus and aman rice, so planting depends on last season's jute price relative to rice. The key processing step is retting, which needs plenty of clean water; poor retting cuts fibre grade. Mills then convert fibre into sacking, hessian and yarn. In India, the government shapes the whole chain through the MSP, JCI purchases and the packaging mandate.
Methods compared
| Method | Share of supply | Typical scale | Recovery / efficiency | By-products | Unit cost |
|---|---|---|---|---|---|
| Smallholder rainfed jute, Bangladesh | 56.4% of world output in 2024 (FAOSTAT) | 2.09 Mt on 0.72 Mha in 2024; output up from 0.92 Mt in 2010 (FAOSTAT) | yield 2.88 t/ha of fibre (FAOSTAT 2024) | jute sticks (fuel, charcoal, particle board), leaves eaten as vegetables | n/a |
| Smallholder jute under MSP support, West Bengal, Assam and Bihar (India) | 38.2% of world output in 2024 (FAOSTAT) | 1.41 Mt on 0.54 Mha in 2024, down from 1.80 Mt in 2010 (FAOSTAT) | yield 2.62 t/ha of fibre (FAOSTAT 2024) | jute sticks | MSP of Rs 5,650 per quintal for 2025-26, up from Rs 5,335 in 2024-25; set to give a 66.8% return over the all-India weighted average cost of production, which implies a cost of about Rs 3,390 per quintal (indicative, basis: CCEA decision, PIB Jan 2025) |
| Mill conversion into sacking, hessian and yarn | India imported 47.9% of world raw jute import value in 2024 to supply its mills (UN Comtrade) | India imported 130 kt of raw jute worth $87 million in 2024 (UN Comtrade HS 5303) | n/a | jute caddis (waste fibre) | n/a |
How each method works
Smallholder rainfed jute, BangladeshFarmers grow jute on small plots in the delta, ret it in local water bodies and sell fibre to traders, private mills and exporters. Bangladesh exports much of its raw jute and jute goods, and its state-owned mills were closed in 2020, leaving private mills.
Largest, low-cost supply of good fibre, but retting water is scarce and prices are volatile.
FAOSTAT 2010-2024 Smallholder jute under MSP support, West Bengal, Assam and Bihar (India)Farmers sell to local traders or to JCI's purchase centres at the MSP for the TD-3 grade. JCI buys when market prices fall below the MSP, through 110 direct purchase centres and 25 outsourced centres (2025).
Price floor and assured mill demand, but area has been falling as farmers switch to rice and vegetables.
FAOSTAT 2024; The Week/PTI, 13 May 2025; PIB, Jan 2025 Mill conversion into sacking, hessian and yarnComposite mills soften fibre with oil and water, card it into sliver, spin yarn and weave sacking or hessian on looms. Indian mills sell B-twill bags to state procurement agencies at government-fixed prices and export hessian and diversified products.
Large captive market under the mandate, but many mills are old and labour-intensive.
UN Comtrade 2024 Unit economics are indicative ranges from the sources named; costs vary widely by deposit, region and year.Who does it: global
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| Bangladesh Jute Mills Corporation volume not published | Bangladesh | state jute mill company; its mills stopped production in 2020 | not published | n/a | |
| Akij Jute Mills (Akij Group) private company; volume not published | Bangladesh | large private jute spinner and exporter | not published | n/a | |
| Janata Jute Mills private company; volume not published | Bangladesh | private jute yarn exporter | not published | n/a |
Who does it: India
| Company | Country | Activity | Volume | Year | Source |
|---|---|---|---|---|---|
| Jute Corporation of India (JCI) | India | Ministry of Textiles undertaking (1971); nodal agency for MSP purchases of raw jute | 13.17 lakh quintals of raw jute bought at MSP | 2023-24 season (July-June) | The Week/PTI, 13 May 2025 |
| Gloster volume not available | India | jute mill (West Bengal): sacking, hessian, geotextiles | not published | n/a | |
| Ludlow Jute & Specialities volume not available | India | jute mill (West Bengal) | not published | n/a | |
| Cheviot Company volume not available | India | jute goods maker and exporter | not published | n/a |
India grew 38.2% of world jute in 2024 and is the largest user, importing 47.9% of world raw jute by value (FAOSTAT; UN Comtrade). JCI bought 13.17 lakh quintals at MSP in the 2023-24 season and 5.05 lakh quintals worth Rs 252 crore in 2024-25 up to May 2025 (The Week/PTI). The JPM Act mandate (100% of foodgrains, 20% of sugar) underpins mill demand.