Import jute bags from India
India as the world’s biggest producer of jute industry:
India is the world’s biggest producer of jute followed by Bangladesh jute is primarily grown in west Bengal and Odisha Assam Meghalaya Tripura and Andhra Pradesh. The jute industry in India is 150 years-old industry. There are about 70 jute mills in industry, 60 jute mills in west Bengal along on the bank of the river Hooghly jute production is a labor-intensive industry it employs about 2 lakh workers in west Bengal and 4 lakh workers across India, jute is the only crop where earnings begin to trickle in before the final harvest.
Different usage of jute:
The outer layer of the stem produces the fiber that goes into making jute products for example wall coverings, floorings, garments, rugs, ropes, gunny bags curtains carpet paper, sandals, and carry bags.
Production of jute bags:
An acre of land produces approximately 9 quintals of fibers not only does this wonder crop bring home a higher return compared to most cash and food crops but it is also a massive sustainer of the feasibility in front of the production of jute bags. Jute bag is the second most abounded “natural fiber made bag” manufactured in India. The jute bag has high tensile strength. Acoustic and thermal insulation is needed to produce jute fiber ready for the bag.
The durability of jute bag:
As It is made with tightly woven and sewn jute. It's 100% recycled material. For the example of its durability we can compare it in this equation;
1 jute bag= 300 polyether bags
This bag has a specification of breathability; low extensibility ease of carrying heavy material in it. It’s versatile and comes in different designs, shapes, and colors. Economic friendly as it’s not very costly, airy, comfortable, and large it’s the best property to describe.
How to export jute bags from India?
India ranked highest as the top exporter of jute bags. The HS code of jute is 42022230. The value of exporting jute in 2019-20 is 103.39 crore which rapidly increased in 2020-2021 is141.44. And if you are interested in exporting jute bags from India to other targeted countries you need to have the following documents;
- IEC(import-export code)
- GST(goods and services tax)
If you are new to exporting business these two documents are enough to start your business.
- RCMC(Registration Cum membership certificate) RCMC is not necessarily important but we need to get benefits from the government so you should have it.
These are the common certificates that are essential for any type of export relating to jute products.
The market size of jute and jute products:
The world jute market size is around 1.9 billion USD and is expected to grow up to 3.3 billion USD by 2026 at a rate of CAGR=9.4%. means compounded annual growth rate jute product showing around 9.4%. is heavily exported, and the growth rate is going upward direction day by day.
Top importer countries of jute bags from India:
• Germany can be targeted as the highest importer of jute bags. It’s the largest jute bag importer since the facts are updated till 23 June 2022 and if we analyze its accounts for shipment, it is around 7,000. And 14.9% of the total world share of jute is imported.
• USA import jute for around 105.9 million USD which is around 9.4% of its total world share for importing jute and jute products.
• If we talked about china, china is also an importer of jute and jute products from India, it imports 80.9 million USD which is around 8.5 % of the total world's share case of jute and jute products.
• If we consider Indonesia's import jute of around 46.9 million USD which is around 4.5% of the world’s total share.
• Canada is also importing a wide range of jute around 40.1 million USD and estimates it is 3.8% of the total world’s share
• France import jute of around 38.5 million USD and which is 3.0% of the total world’s share
• If we talk about Russia, with whom we are on good terms regarding trade, they import jute of around 29.9 million USD and it’s 3.0% of the total world’s share.
• Mexico imports jute of around 28.5 million USD which is 2.9% of the total world share
These are the countries you can target the market which might be turned out in a good profit outcome for you.
India's position in the jute and jute bag Business:
50% of world raw jute is exported from India, 40% of world jute finished products are exported from India to different countries, and in which the highlighted product is jute bags.
Import from India:
India our beloved country has made us proud by exporting jute and jute products for around 119 million USD which is around 43.7% of the world's share. We are at the number 1 place. You have to be continuously concentrated to be a part of trade and export into other countries so that we will maintain our first rank in the world’s record. You will develop your country's economy at a higher level by trading.
How it’s Profitable for the overseas buyer to import from India:
It is highly profitable for overseas buyers to import jute bags from India as India has the largest production sector all around the world. And if we talked about the quality of jute bags and the refine material it’s used, it is not comparable with other competitor countries. We export at the lowest rate as compared to other countries.
We will explain to you with an example per piece:
If we consider Jute bags/Handbags per piece in different sizes if we have exported a large amount of bags to France it is approximately 0.71$ per piece we export to France.
In the UK per piece is: 0.65$
USA: 0.93 $per piece
Netherlands: 0.95$ per piece
And Germany as it’s the highest importer country we export at 0.59$ per piece.
We are exporting at the lowest rate as compared to many countries which can be a benefit for overseas buyers, as we export in bulk because we are the largest industry of exporting to other countries.
Sourcing of jute bags from India:
If you are a merchant exporter and which estate is suitable for you to take at the lowest rates and import to the international market and earn a large amount of profit
First of all West Bengal is producing jute of around 162.10 (in `000 bales) as of the year 2020 - 21.
1 bale (pucca), standard size is (120 X 45 X 50) cm having net weight of 180 kg, i.e. 1 bale = 180 kg. If we count
these bales into kgs it comes to around 2crore 91 lakhs sixty thousand kgs (1,62,000 X 180 = 2,91, 60,000) and in
metric tons it is 29160
Bihar is the 2nd producing estate producing 1571 bales Assam is 824 bales.
Blog credits: https://www.jfsglobaltrade.com/