Abstract
The world packaging industry, criticized for degrading the environment by using synthetic packaging materials, found a solution in jute - a biodegradable green product. Prior to large-scale use of synthetics, the demand for Indian jute in the global packaging industry was very high. Till early seventies, India's share in the global jute market was more than 50%. With the decline in the use of jute in developed countries, the Indian jute industry redirected its focus to the protected domestic market for its survival. Now, in the altered liberalized environment, the industry is at the crossroad. There is increased pressure on the government from the synthetic fiber lobby to reduce its patronage by diluting the compulsory jute-packaging rule; the protected domestic jute packaging market is under threat. But export markets are increasing. By demanding more ecological packaging, global consumers have strengthened the export potential of Indian jute. To compete with plastic industry, recently (early 2005), the United Nations has taken an initiative to form a jute cartel involving five major jute growing countries namely India, Bangladesh, China, Pakistan and Nepal. Although, plastic packaging materials cost at least 50% less compared to jute, it is expected that due to increased environmental consciousness, demand for jute in the international market will increase vis-a-vis plastic. (ABP'15.6.05) In the first part of this study, we shall try to analyze the present status of the industry in a secured domestic market. In the second part, we shall discuss about the changes to be introduced in various functional areas to meet the growing demand of jute products in the in the post MFA (multi fiber agreement) quota free global market.
Published Version
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