Jute is the world’s 1025th most traded product. In 2019, the top exporters of Jute were Bangladesh with 461 million dollars, India with 15.2 million dollars, Turkey with 9.97 million dollars, China with 4.85 million dollars, and Belgium with 3.12 million dollars. In 2019, the top importers of Jute were Turkey with 208 million dollars, China with 80 million dollars, India with 52 million dollars, Uzbekistan with 21 million dollars, and Indonesia with 18.8 million dollars.
In this post, we will be taking a look at the top producers, importers and exporters of jute.
Below are the top jute producing countries:
- South Sudan
Top exporters of jute are:
The top importers of the commodity are:
- Cote d’Ivoire
- South Korea
Top Jute Producing Countries In The World:
India: India is the largest jute-producing country in the world, with annual production estimated at more than 1.968 million tonnes. The prominence of India in the global production of jute is attributed to improvements in the crop cultivation process, as well as the use of technology in jute farming. The majority of jute produced in India is consumed domestically, as the country is also one of the largest consumers of jute and jute products in the world. Strict laws in India regarding allowable types of packaging materials are a primary cause of the country’s demand for jute. In 2011, India imported over 337,000 tonnes of jute and jute products to meet domestic demand. West Bengal accounts for as much as 50 percent of the country’s total jute production. Other major jute-producing regions in the country include Bihar, Uttar Pradesh, Meghalaya, Assam, and Orissa.
Bangladesh: Bangladesh is the second-largest producer of jute in the world, with annual production estimated at 1.349 million tonnes. The country was formerly the world’s top jute producer, but a lack of technological advancements in Bangladesh’s jute cultivation means that production was stagnant, and was later surpassed by India as the global leader in jute production. Nonetheless, Bangladesh remains the world’s largest exporter of jute fiber, accounting for as much as 70 percent of global jute exports. The jute fiber produced in Bangladesh is often considered the best quality in the world.
Jute has been produced in Bangladesh for domestic consumption for many centuries, but it was not until the establishment of the British East India Company that the crop became a key export commodity. Key jute-producing regions in Bangladesh include Tangail, Dhaka, Jessore, Jamalpur, Bogra, and Faridpur. The total area under jute cultivation in Bangladesh is about 559,838 hectares. The Bangladeshi Jute Research Institute is a state-owned institute that provides top-quality seeds to jute farmers across the country.
Other Top Jute Producing Countries: There are few other countries that have significant levels of jute production. These countries include China, whose annual jute production is estimated to be about 29,628 tonnes. China is also one of the world’s largest consumers and importers of natural fiber. Other top jute producers include Uzbekistan with 20,000 tonnes, Nepal with 14,890 tonnes, and South Sudan with 3,300 tonnes.
Uses Of Jute
Jute is one of the most common natural fibers in the world and is renowned for its antistatic and insulation properties, as well as its low thermal conductivity. Jute also has low extensibility and high tensile strength, which makes jute-made packaging materials breathable and hence suitable for the packaging of agricultural commodities. Numerous countries around the world have imposed bans on plastic packaging, making jute a popular alternative due to its bio-degradable nature.
According to IndexBox, the global jute market revenue amounted to 2.7 Billion dollars in 2018, going up by 4.6 percent from the previous year. This figure reflects the total revenues of producers and importers excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price. The market value increased at an average annual rate of plus 1.4 percent over the period from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being observed over the period under review. The pace of growth was the most pronounced in 2011 when the market value increased by 18 percent year to year. In that year, the global jute market reached its peak level of 2.9 Billion Dollars. From 2012 to 2018, the growth of the global jute market remained at a somewhat lower figure.
Consumption By Country
The countries with the highest volumes of jute consumption are India with an average annual consumption of 2.1 Million tonnes, Bangladesh with 1.4 Million tonnes, and Pakistan with 91 thousand tonnes, with a combined 90 percent share of global consumption. From 2007 to 2018, the most notable rate of growth in terms of jute consumption, among the main consuming countries, was attained by Bangladesh, while the other global leaders experienced mixed trends in the consumption figures.
In value terms, India with an average of 1.2 Billion Dollars, Bangladesh with 899 Million Dollars, and Pakistan with 70 Million Dollars are the countries with the highest levels of market value, with a combined 79 percent share of the global market.
So far, the highest levels of jute per capita consumption have been registered in Bangladesh with 8,154 kilograms per 1000 persons, followed by India with 1,552 kilograms per 1000 persons, Pakistan with 453 kilograms per 1000 persons, and China with 54 kilograms per 1000 persons, while the world average per capita consumption of jute was estimated at 512 kilograms per 1000 persons. In Bangladesh, jute per capita consumption expanded at an average annual rate of plus 14.5 percent over the period from 2007 to date. In the other countries, the average annual rates are as follows: India with minus 1.2 percent per year and Pakistan with minus 4.8 percent per year.
Global exports totaled 291 thousand tonnes in 2018, increasing by 5.7 percent against the previous year. Overall, jute exports, however, continue to indicate a deep curtailment. The most prominent rate of growth was recorded in 2016 with an increase of 18 percent year to year. The global exports peaked at 643 thousand tonnes in 2007; however, from 2008 to date, exports failed to regain their momentum.
In value terms, jute exports stood at 213 Million Dollars in 2018 according to Indexbox estimates. Overall, jute exports, however, continue to indicate a slight drop. The pace of growth was the most pronounced in 2010 with an increase of 48 percent against the previous year. The global exports peaked at 361 Million Dollars in 2011; however, from 2012 to date, exports remained at a lower figure.
Exports by Country
Bangladesh dominates the jute export structure, reaching 229 thousand tonnes, which is near 79 percent of total exports. It was distantly followed by India with 14 thousand tonnes, creating a 4.8 percent share of total exports. The following exporters like Tanzania with 12,710 tonnes, Belgium with 10,536 tonnes, Kenya with 8,787 tonnes, and Malaysia with 4,638 tonnes together made up 13 percent of total exports.
Exports from Bangladesh decreased at an average annual rate of minus 8.0 percent from 2007 to 2018. At the same time, Malaysia with plus 33.3 percent, Belgium with plus 6.0 percent, and Tanzania with plus 1.5 percent displayed positive paces of growth. Moreover, Malaysia emerged as the fastest growing exporter in the world, with a CAGR of plus 33.3 percent from 2007 to 2018. By contrast, Kenya with minus 1.9 percent and India with minus 6.6 percent illustrated a downward trend over the same period. From 2007 to 2018, the share of Belgium and Malaysia increased by plus 1.7 percent and plus 1.5 percent percentage points, while India and Bangladesh saw their share reduced. The shares of the other countries remained relatively stable throughout the analyzed period.
In value terms, Bangladesh with 158 Million Dollars remains the largest jute supplier worldwide, comprising 74 percent of global exports. The second position in the ranking was occupied by Tanzania with 18 million dollars, with an 8.2 percent share of global exports. It was followed by Kenya, with a 6.5 percent share.
From 2007 to 2018, the average annual rate of growth in terms of value in Bangladesh amounted to minus 1.8 percent. In the other countries, the average annual rates were as follows: Tanzania with plus 5.8 percent per year and Kenya with plus 2.4 per year.
Export Prices by Country
The average jute export price stood at 734 dollars per tonne in 2018, therefore, remained relatively stable against the previous year. Over the period under review, the export price indicated a prominent increase from 2007 to 2018: its price increased at an average annual rate of plus 5.8 percent over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, jute export price decreased by minus 11.1 percent against 2016 indices.
The most prominent rate of growth was recorded in 2010 an increase of 38 percent year to year. Over the period under review, the average export prices for jute and jute-like fibers attained their peak figure at 825 dollars per tonne in 2016; however, from 2017 to 2018, export prices stood at a somewhat lower figure.
There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was Kenya with 1,572 per tonne, while Malaysia with 131 per tonne was amongst the lowest.
From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Bangladesh, while the other global leaders experienced more modest paces of growth.
Imports by Country
Pakistan with 91 thousand tonnes and India with 64 thousand tonnes represented the largest importers of jute and jute-like fibers in 2018, amounting to nearly 31 percent and 22 percent of total imports, respectively. Nepal with 41 thousand tonnes took the next position in the ranking, followed by China with 31 thousand tonnes. All these countries together took approximately. 25 percent share of total imports. The following importers namely: Germany with 8,103 tonnes, the UK with 6,147 tonnes, Cote d’Ivoire with 5,799 tonnes, Brazil with 5,503 tonnes, and South Korea with 4,465 tonnes together made up 10 percent of total imports.
From 2007 to date, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Germany, while the other global leaders experienced more modest paces of growth.
In value terms, the largest jute importing markets worldwide were Pakistan with 49 million dollars, India with 40 million dollars, and Nepal with 23 million dollars, with a combined 56 percent share of global imports.
Nepal recorded the highest rates of growth in imports, in terms of the main importing countries over the last eleven years, while the other global leaders experienced more modest paces of growth.
Jute is a long, soft, shiny bast fiber that can be spun into coarse, strong threads. It is produced from flowering plants in the genus Corchorus, which is in the mallow family Malvaceae. The primary source of the fiber is Corchorus olitorius, but such fiber is considered inferior to that derived from Corchorus capsularis. Jute is the name of the plant or fiber used to make burlap, hessian or gunny cloth.
Jute is one of the most affordable natural fibers, and second only to cotton in the amount produced and variety of uses. Jute fibers are composed primarily of the plant materials cellulose and lignin. Jute fiber falls into the bast fiber category which refers to fiber collected from bast, the phloem of the plant sometimes called the skin along with kenaf, industrial hemp, linen, ramie, etc. The industrial term for jute fiber is raw jute. The fibers are off-white to brown, and 1 to 4 meters or 3 to 13 feet long. Jute is also called the golden fiber for its color and high cash value.
Jute is a long natural fiber that is produced from plants of the Corchorus genus and is made of the plant’s cellulose and lignin. The fiber has numerous uses including the manufacturing of bio-degradable packing material, such as gunny bags.
Jute is recognized as the second most important vegetable fiber in the world, behind only cotton, in terms of global consumption and production. India and Bangladesh produce the greatest amounts of jute in the world, and global production is estimated at more than 3.3 million tonnes each year.
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Jute is one of the most common natural fibers in the world. It is renowned for its antistatic and insulation properties, as well as its low thermal conductivity. The global jute market revenue amounted to 2.7 billion dollars in 2018, going up by 4.6 percent from 2017.
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