History of Jute
The Golden Fibre
Jute, often referred to as the “Golden Fibre,” has a rich history and is closely associated with several countries, including Bangladesh, India, Brazil, Vietnam, and Thailand, which are among the top producers of jute.
Jute is a natural fiber known for its golden and silky shine, making it highly distinctive. It is derived from the bast or skin of the jute plant’s stem, and it ranks as the second most significant vegetable fiber after cotton in terms of global consumption, production, and availability. With its high tensile strength, low extensibility, and excellent breathability in fabrics, jute has proven to be a versatile material.
One notable advantage of jute is its eco-friendly nature. It is 100% biodegradable and recyclable, making it an environmentally conscious choice. Jute finds applications in various sectors, including packaging, textiles, non-textiles, construction, and agriculture. It is used to create high-quality industrial yarn, fabric, nets, and sacks.
Jute stands as the second largest natural fiber globally, surpassed only by cotton. Its primary cultivation occurs in India, Bangladesh, and Brazil, with the highest quality jute originating from Bangladesh. As a cellulosic fiber, jute offers a renewable annual crop that can be co-grown with food crops like rice. This co-cultivation does not compromise land resources in regions grappling with poverty and food scarcity. In fact, the volume of cellulosic fiber produced per hectare per year exceeds that of many fast-growing trees.
Period from 17th century
The history of jute dates back to the 17th century when the British East India Company, which held authority in India under the British Empire, became involved in jute trading. During the 19th century, the company primarily traded in raw jute. As the 20th century began, the company established trade connections with Dundee’s Jute Industry in Scotland. This trade was initially monopolistic in nature. Margaret Donnelly, a jute mill landowner in Dundee, played a crucial role in setting up the first jute mills in India. The entrepreneurs of the Dundee Jute Industry were known as the Jute Barons.
In 1793, the East India Company exported the first consignment of jute, consisting of 100 tons. Subsequent shipments followed irregularly until one consignment reached Dundee, Scotland, where flax spinners were eager to explore mechanical processing methods for jute. Starting in the 1830s, the spinners in Dundee adapted their power-driven flax machinery to spin jute yarn. This led to a rise in the jute industry in Dundee and a corresponding increase in the production and export of raw jute from the Indian subcontinent, which served as the primary supplier of this valuable commodity.
Period from 1855
The history of jute is intricately tied to the city of Calcutta (now Kolkata) and its surrounding regions, where the jute-growing areas of Bengal were located. Calcutta possessed several advantages that contributed to the growth of the jute industry. Firstly, the proximity of the raw materials ensured a readily available supply. Secondly, the city had an abundant workforce and access to ample coal for powering the mills. Lastly, its strategic location facilitated easy shipping to global markets. It is in this backdrop that the first jute mill was established in Rishra, along the River Hooghly near Calcutta, in 1855. Mr. George Acland brought jute spinning machinery from Dundee, a city in Scotland renowned for its jute industry. Just four years later, the first power-driven weaving factory was set up, signaling the rapid progress of the industry.
By 1869, five mills were operating in the region, equipped with 950 looms. The growth trajectory of the jute industry was nothing short of remarkable. By 1910, a staggering 38 companies, operating a total of 30,685 looms, were exporting over a billion yards of cloth and more than 450 million bags. Until the mid-1880s, the jute industry was largely confined to Dundee and Calcutta. However, as the latter part of the 19th century unfolded, countries such as France, America, Germany, Belgium, Italy, Austria, and Russia began venturing into jute manufacturing.
In the subsequent three decades, the jute industry in India witnessed even more remarkable expansion. By 1939, it had risen to a position of commanding leadership, boasting a total of 68,377 looms. These mills were primarily concentrated along the River Hooghly near Calcutta. The Indian jute mills alone were capable of meeting the world’s demand for jute products.
The early days of jute weaving in Dundee primarily involved the production of coarse bagging materials. However, with increasing experience and expertise, the mills began producing finer fabrics known as burlap, or hessian as it is known in India. These superior quality cloths found ready buyers in the market. Eventually, the Indian Jute Mills also started manufacturing these fabrics, and their natural advantage in burlap and bagging materials propelled Calcutta to a position of global leadership. Meanwhile, the mills in Dundee and other countries began focusing on developing a wide variety of specialty jute products, diversifying their offerings and catering to specific market demands.
To streamline and manage the jute mills in Bangladesh effectively, the government established the Bangladesh Jute Mills Corporation (BJMC). The BJMC assumed the responsibility of overseeing and controlling the jute mills in the country, ensuring their efficient operation and contribution to the economy. The post-1947 era marked a transitional phase for the jute industry, with changes in ownership, management, and political dynamics shaping its trajectory in both India and Bangladesh. Despite these transformations, the jute industry continued to play a significant role in the economic development of the regions and maintained its importance as a key global supplier of jute products.
Jute Industry after 1947
The history of the jute industry took a significant turn after the fall of the British Empire in India in 1947. Many of the influential Jute Barons who had dominated the industry decided to leave India, abandoning their industrial setups. This created an opportunity for new players to enter the jute business. In India, most of the jute mills were taken over by Marwari businessmen, who stepped in to fill the void left by the departing Jute Barons.
In East Pakistan, which later became Bangladesh, there was initially a lack of a well-established jute industry after the partition in 1947. However, the region possessed the finest stock of jute fiber. As tensions between Pakistan and India escalated, the Pakistani government recognized the need to establish its own jute industry to meet the country’s requirements. Several groups of Pakistani families, primarily from West Pakistan, ventured into the jute business by setting up mills in Narayanganj, a city in East Pakistan.
Among the notable Pakistani families who entered the jute industry were the Bawanis, Adamjees, Ispahanis, and Dauds. They played a significant role in establishing jute mills and driving the growth of the industry in East Pakistan. However, the political landscape changed with the liberation of Bangladesh from Pakistan in 1971. Subsequently, the government of Bangladesh took over most of the jute mills owned by Pakistanis.
Adamjee Jute Mill
Adamjee Jute Mills, established by one of Pakistan’s prominent industrialists and scion of the country’s wealthiest family, holds a significant place in the history of the jute industry. Initially, the project was a partnership between the Adamjee family and the PICIC, the government’s industrial arm. However, the Adamjee family eventually assumed full control and transformed it into the largest jute mill in the world.
In the aftermath of the partition of India in 1947, all 108 jute mills in Bengal were located in West Bengal, which became part of India. The newly formed government of Pakistan called upon Muslim entrepreneurs to submit proposals for a jute mill in East Bengal. In December 1949, the Adamjee Group presented a proposal to the Pakistani government for the establishment of a jute plant. The capital for the mill was to be provided by the Adamjee Brothers, with a 50-50 equal partnership. After careful consideration, Siddhirganj was chosen as the site for the mill due to its excellent river, road, and rail communication facilities. The mill was successfully established in December 1951.
However, the Adamjee family’s control over the mill came to an end during the events of 1971, when Bangladesh gained independence from Pakistan. Following independence, the mill was nationalized by the government of Bangladesh. During the war, Bengali workers in the mill were replaced by Bihari workers. After the conflict concluded, the Bihari workers were protected by the Indian Army.
At its peak, Adamjee Jute Mill employed over 25,000 workers. However, on June 30, 2002, the mill was closed down. Over the years of nationalization, the mill had accumulated losses amounting to 12 billion taka.
Adamjee Jute Mill stands as a testament to the significant role played by the jute industry in the economic development of the region. While its ownership and fate may have changed over time, the mill’s legacy as a historic and influential entity in the jute industry remains.
Jute Trade
The jute trade today is primarily centered around the Indian subcontinent, with Bangladesh emerging as the largest exporter of raw jute and producer of jute goods. India, on the other hand, stands as the largest consumer of jute products worldwide. The local prices of jute goods in the Indian subcontinent often serve as indicators of the international market prices.
Approximately 75% of jute goods are used as packaging materials, including burlap (Hessian) and sacks. This utilization highlights the strong association of jute with the packaging industry. Another significant outlet for jute is carpet backing cloth, which has been rapidly gaining importance and currently accounts for around 15% of global jute goods consumption. The remaining jute products include carpet yarn, cordage, felts, padding, twine, ropes, decorative fabrics, and various items for industrial use.In recent years, jute has also made its way into the non-woven industry due to its cost-effectiveness and high tensile strength as a vegetable fiber. This development has led to a growing demand for jute in the automotive industry. Manufacturers are increasingly utilizing jute to create more eco-friendly interiors for cars and automobiles, capitalizing on its sustainable and renewable qualities.
The evolving utilization of jute in various industries demonstrates its versatility and adaptability as a natural fiber. While its traditional applications in packaging and carpet backing cloth continue to dominate, the expansion into non-woven industries such as automotive showcases the potential for jute to contribute to sustainable manufacturing practices and promote environmental consciousness.
Additionally, the Central Research Institute for Jute & Allied Fibres (CRIJAF), formerly known as the Jute Agricultural Research Institute (JARI), has played a crucial role in the research and development of jute fibers and allied fibers. The institute was established after the partition of India in 1947 and has been dedicated to advancing scientific knowledge, improving cultivation techniques, and enhancing the quality of jute and allied fibers.
These organizations, such as the IJSG, BJMC, and CRIJAF, have been instrumental in fostering cooperation, promoting standards, and driving research and development efforts in the jute industry. Their collective efforts have contributed to the growth and sustainability of the jute sector, both at the national and international levels.
Jute Organizations
The jute industry has been supported and regulated by various organizations that aim to promote the cultivation, trade, and research of jute fibers and allied fibers.
The International Jute Study Group (IJSG) is an intergovernmental body established under the auspices of UNCTAD (United Nations Conference on Trade and Development) to function as the International Commodity Body (ICB) for Jute, Kenaf, and other Allied Fibers. The IJSG was created through negotiations held in Geneva between 2000 and 2001, resulting in a multilateral treaty known as the Agreement establishing the Terms of Reference of the International Jute Study Group. This agreement was ratified by Bangladesh, the European Union, India, and Switzerland. On April 27, 2002, the IJSG officially came into existence, with its headquarters located in Dhaka, Bangladesh. The primary objective of the IJSG is to promote market transparency, facilitate cooperation among jute-producing and consuming countries, and support sustainable development in the jute sector.
In Bangladesh, the government established the Bangladesh Jute Mills Corporation (BJMC) to oversee and control the jute mills in the country. The BJMC is the largest state-owned manufacturing and exporting organization in the jute sector globally. It was formed to streamline the operations of jute mills in Bangladesh and ensure their efficient functioning and contribution to the economy.
The jute sector in Bangladesh
has played a significant role in the country's economy,
making substantial contributions over the years. This sector has been a major source of employment, directly and indirectly, for a large segment of the population. Bangladesh annually produces around 5.5-6.0 million (55-60 lakh) bales of raw jute, out of which approximately 3.2 million (32 lakh) bales are utilized in the existing 148 jute mills. The country exports 2.4 million (24 lakh) bales of jute to meet international demand.
The jute industry provides direct employment to around 160,000
The jute industry provides direct employment to around 160,000 individuals working in the jute mills across the country. The global demand for jute goods stands at approximately 0.75 million (7.50 lakh) tonnes. Bangladesh exports 0.46 million (4.60 lakh) tonnes of jute goods, while India holds a share of 0.285 million (2.85 lakh) tonnes in the international market.
Dhaka, the capital city of Bangladesh, controls 62% of the total jute goods market worldwide and earns significant revenue by exporting jute goods, amounting to Taka 20.125 billion (2012.5 crore). Bangladesh is the sole exporter of raw jute, having exported 2.4 million (24 lakh) bales of raw jute valued at Taka 9.77 million (977 crore) in recent years. The country’s total earnings from exporting raw jute and jute goods amount to Taka 29.395 billion (2939.5 crore). The jute industry holds immense economic importance for Bangladesh, and any challenges faced by this sector require careful study and timely resolution.
Jute in Bangladesh
Currently, the industry faces several serious problems, both in the public and private sectors. These issues include the increasing need for subsidies and rising production costs, a growing number of idle looms, managerial deficiencies, ineffective operating policies, alleged mismanagement in raw jute procurement, a shortage of diverse orders from buyers, outdated and worn-out equipment, and other similar challenges. These problems have resulted in significant losses for the industry, necessitating substantial government subsidies.
In response to the ailing situation of the jute industry, various organizations have organized seminars, symposiums, and published articles in newspapers, all focused on finding solutions and revitalizing the jute industry. Recognizing the importance of addressing these challenges, the authors of this paper have conducted a study on the jute industry in Bangladesh.
