Fibres

Jute and other hard fibres could stage a comeback in world markets thanks to the increase in oil prices, which hurts the competitiveness of synthetic jute substitutes. However, in order to grasp this opportunity producers and processers need to convert to higher quality fibre and increase their productivity.
Information
This section focuses on jute and provides online resources and our 2006 report "A Road Map for Jute."

The cumulative effect of developments in North America, the former Soviet Union, Western Europe, Africa and Latin America has been a steady and substantial erosion of the export market for jute and jute goods, especially for exporters in Bangladesh. At the same time, demand for jute has increased in India, which has become the centre of both global production and consumption.

Jute could once again compete in export markets if producers and processers could convert to higher quality fibre and increase productivity. Producers are facing a unique opportunity with the increase the price of oil, which hurts the competitiveness of otherwise cheaper synthetic jute substitutes. The technology is available today for the production of higher quality yarn and fabrics from natural jute.

The other key element to a new strategy is the development of new major, rather than niche, markets. If there is to be a shift from Indian consumption of sacking to alternatives, it will involve developing markets for hundreds of thousands of tons of jute.

Report
A Road Map for Jute, ITC’s research paper on the challenges and opportunities for the industry, was produced in collaboration with the Dhaka-based International Jute Study Group. To download the report in pdf free of charge, click here.

External sites
Here are links to associations that can provide further information relating to jute:

International Jute Study Group

European Association for the Trade in Jute and Related Products

Data and Research
Advisory Services
Currently ITC offers no standard advisory services specifically for the fibre sector – with the exception of cotton. We can, however, offer customized advice and sector analyses through ITC staff and our network of fibre consultants.

ITC can undertake advisory projects for both producers and processors. Producers’ first battle needs to be the retention of existing markets for jute goods. In parallel with this defensive strategy, there must be a concerted effort to improve fibre quality, to retain farmers’ interest in growing the crop and to reduce agricultural costs. At the same time jute mills need to improve their productivity. This requires investment in machinery design and development.

In the longer term there is a substantial market opportunity in plastic composites, of higher value fabrics in apparel and household furnishings, in niche market applications and others that are yet to be developed. Advisory projects could focus on the following:

Establish which of the available new varieties is most suited to provide both high yields and per hectare and high sourcing fibre.

Encourage seed growers and seed merchanting companies to multiply the best newly selected varieties and bring them to market.

Extend the availability and improve the distribution of good quality certified seed – including the establishment of a series of small cold stores in the more remote jute growing areas.

ITC statistics on commodities – including jute and other fibres
Understanding the structure and evolution of international markets is essential for both firms and trade support institutions (TSIs). Firms scanning the world market for opportunities to diversify products and markets, as well as suppliers, and TSIs setting priorities in terms of trade promotion, sector performance, partner countries, and trade development strategies must have detailed statistical information on international trade flows in order to utilize resources effectively. Strategic market research based on such information helps them gauge the competitiveness of national and sector trade performance and identify priority products and markets for trade development.

ITC produces and disseminates market research and trade analysis for trade support institutions and the business community in developing countries and transition economies. We offer in-depth analysis of international trade flows and the development of analytical tools for market analysis and trade promotion, as well as training activities. For further information on data for jute and other fibres, look at the “Data and Research” section on this page.

Training
Currently ITC offers no formalized standard advisory service specifically for the this sector. We can, however, offer training programmes on an ad hoc basis.

ITC maintains contact with a small group of international fibre trade experts – some of them having been associated with ITC for more than ten years and whom are still available to provide services.

At present few farmers practice the balanced use of fertilizers at the correct stage of plant growth and many do not use plant protection measures against pest attack. Instruction and education would go part of the way to improve this situation.

For more informantion on setting up training programmes in the sector, contact us.

Networks
ITC maintains contact with a small group of international fibre trade experts – some of them having been associated with ITC for more than ten years and whom are still available to provide services.
For details about how to get in touch with our networks, please contact us.
Projects

There are currently no ongoing projects in the sector in ITC.

ITC had an extensive programme in the jute sector in the 1990s, in particular on product and market development and promotion.

To initiate a project in the sector, please contact us.

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Fibres

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