Material Insights · Understanding the Material World

Jute: Overview

Sacks, hessian, twine and new green geotextiles

What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Foodgrain sacks (B-twill bags) for government procurementn/a n/a basis India's Jute Packaging Materials Act of 1987 requires that 100% of foodgrains be packed in jute bags, so FCI and state agencies buy B-twill sacks for wheat and rice. Jute bags breathe, which limits sweating of stored grain, stack well and are reusable; the mandate guarantees mills a large, steady order book. Cabinet Committee on Economic Affairs decision on JPM Act norms, Oct 2020 (as reported by Journals of India) Woven polypropylene (HDPE/PP) sacks
Bulk silos and bulk handling
Sugar bagsn/a n/a basis The same mandate requires 20% of sugar to be packed in jute. Mills prefer cheaper, moisture-proof plastic sacks for the rest, so jute holds this market mainly through regulation. CCEA decision on JPM Act norms, Oct 2020 Woven polypropylene sacks with liners
Hessian cloth, shopping and promotional bagsn/a n/a basis Hessian is a cheap, strong, biodegradable cloth. Bans on single-use plastic bags and retailer sustainability goals have created export demand for jute shopping bags from India and Bangladesh. Qualitative; no quantified source found Cotton and canvas bags
Non-woven polypropylene bags
Paper bags
Yarn, twine and carpet backingn/a n/a basis Jute yarn is used for twine, rope and as backing for carpets and rugs. Its stiffness and low cost suit these uses, although polypropylene has taken most of the carpet-backing market. Qualitative; Radetzki and Warell (2021) note substitution from jute to synthetic fibres Polypropylene yarn and backing
Sisal and coir
Geotextiles and diversified productsn/a n/a basis Jute geotextiles stabilise soil on embankments and roads and then rot away once vegetation takes hold. Diversified products such as furnishings and composites are a growing niche backed by government schemes. Qualitative; no quantified source found Synthetic geotextiles
Coir mats
No published split of jute use by end market was found. The packaging mandate under India's JPM Act (100% of foodgrains and 20% of sugar, as extended in 2020) makes government foodgrain sacks the anchor market. World jute output was 3.70 Mt in 2024, 94.5% of it from Bangladesh and India (FAOSTAT).

From field to user

  1. Sowing Farmers sow jute before the monsoon on the Ganges-Brahmaputra delta; the world harvested 1.45 Mha in 2024, Bangladesh 0.72 Mha and India 0.54 Mha (FAOSTAT).
  2. Harvest Plants are cut after a few months of growth, when they stand several metres tall.
  3. Retting Bundles of stalks are steeped in ponds or ditches until microbes loosen the fibre from the woody core; water quality and retting time set fibre grade.
  4. Stripping, washing and drying Farmers strip the fibre by hand, wash and dry it; the woody jute sticks are kept for fuel and fencing.
  5. Grading and first sale Fibre is graded (the MSP benchmark is TD-3 in India) and sold to traders or to the Jute Corporation of India at the MSP of Rs 5,650 per quintal in 2025-26 (The Week/PTI, May 2025).
  6. Mill processing Mills, mostly along the Hooghly in West Bengal, soften, card, spin and weave fibre into sacking, hessian and yarn.
  7. Bags and end use Government agencies buy B-twill bags for grain procurement; exporters sell hessian, yarn and bags abroad.

Price movement snapshot 2026-10-25

No public daily or monthly benchmark price for this commodity in the datasets used.

World production 3.70 m tonnes, 2024 Largest producer Bangladesh 56.35% of world

Three things to know

  • Bangladesh and India grew 94.5% of the world's raw jute in 2024 (FAOSTAT).
  • In 1974 Bangladesh received US food credits only after agreeing to halt jute exports to Cuba (Morgan).
  • Marc Rich's father imported jute for burlap bags before his son joined Philipp Brothers (Blas & Farchy).

Top recent news snapshot 2026-10-25, last 30 days

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ExtractionProductionStocksCyclesTradingMovementCriticalityCharacteristicsEmissions