# Jute: Trading

No futures, just traders, mills and support prices

Source page: https://www.materialinsights.org/commodities/jute/trading/

What this tab covers How and where it is bought and sold: who buys and sells, exchanges and benchmarks, contract types, the big trading houses and how prices are discovered.

There is no international futures market for jute. Indian exchanges have listed raw jute contracts at times, but liquidity has been thin. Farmers sell to local traders, who sell to mills, and the Jute Corporation of India buys at support prices. Exporters sell yarn and goods under private contracts. The trade has long attracted merchants. Morgan describes Bunge importing raw Indian jute to Argentina for grain bags, and Blas and Farchy note that Marc Rich's father imported jute for burlap bags.

#### Where it is bought (buyers)

- Indian mills buy raw jute from traders and JCI, and import from Bangladesh (India 47.9% of world raw jute import value in 2024)
- Pakistan (12.2%), China (9.9%) and Nigeria (9.3%) import raw jute (UN Comtrade 2024)
- State procurement agencies and FCI buy B-twill bags from Indian mills

#### Where it is sold (sellers)

- Bangladeshi farmers and traders sell raw jute to local mills and to India
- Indian farmers sell to traders or JCI at MSP
- Indian and Bangladeshi mills export hessian, yarn and bags

#### Exchanges and benchmarks

| Venue | Contract | Notes |
|---|---|---|
| **India** | no jute futures | prices are set by MSP, mill purchases and Jute Commissioner notifications |
| **International** | none | raw jute and goods trade on bilateral contracts |

#### Contract types

- MSP purchases by JCI at purchase centres
- Government supply orders for B-twill bags placed through the Ministry of Textiles' online system
- Bilateral FOB contracts for raw jute and jute goods exports

#### Top trading houses

- No international trading houses dominate; trade runs through Kolkata and Dhaka merchants and mills

#### How prices are discovered

- MSP announced by the CCEA
- Office of the Jute Commissioner price notifications
- Export and import unit values in UN Comtrade data

## Other sections

- [Summary](https://www.materialinsights.org/commodities/jute/index.md)
- [Overview](https://www.materialinsights.org/commodities/jute/overview/index.md)
- [Correlation](https://www.materialinsights.org/commodities/jute/correlation/index.md)
- [Extraction](https://www.materialinsights.org/commodities/jute/extraction/index.md)
- [Production](https://www.materialinsights.org/commodities/jute/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/jute/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/jute/cycles/index.md)
- [Movement](https://www.materialinsights.org/commodities/jute/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/jute/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/jute/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/jute/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/jute/links/index.md)