2025: Jute Industry Under Stress Amid Raw Material Crunch, Price Surge

The jute industry witnessed yet another turbulent year in 2025, grappling with an acute shortage of raw material, soaring prices and an increasing dependence on plastic packaging for food grains, developments that have raised serious concerns for the sector.

What initially appeared as a seasonal mismatch between the availability of raw jute and statutory packaging requirements gradually escalated into a full-blown crisis by the end of the year. One of the key reasons behind the worsening situation has been a steady decline in jute cultivation, as farmers increasingly shifted to alternative and more remunerative crops such as maize.

According to government data, jute acreage during the Kharif season stood at around 5.56 lakh hectares as of late September 2025. This marks a significant drop from the normal cultivation area of about 6.60 lakh hectares and is also lower than the acreage recorded in the previous year.

Industry stakeholders said the reduced acreage led to a sharp fall in raw jute arrivals, pushing prices to record highs and straining jute mills, many of which faced disruptions in production. The shortage also forced agencies to rely more heavily on plastic bags for food grain packaging, undermining the objective of promoting eco-friendly jute alternatives.

Experts warn that unless timely policy interventions, better price assurance for farmers and improved productivity measures are introduced, the jute sector could face prolonged instability. The industry, which supports millions of livelihoods, particularly in eastern India, is now looking to the government for corrective steps to revive farmer confidence and stabilise raw material supply in the coming seasons.