Dear Customers,
At [Your Brand Name], we’ve always been committed to bringing you high-quality, eco-friendly jute bags at fair prices. But today, we want to openly share something that may soon affect our pricing—and it’s something beyond our control: a nationwide raw jute supply crisis.
You may notice a rise in the prices of jute bags over the coming weeks. Let us walk you through why this is happening, how it affects the jute industry, and most importantly—how it impacts you as a conscious consumer.
🌾 What’s Happening in the Jute Industry?
The heart of India’s jute industry lies in West Bengal, especially Kolkata, where the majority of jute mills are located. These mills process raw jute into threads and fabrics, which are then used to make bags, sacks, and eco-friendly packaging materials.
However, since early 2025, the jute mills in Kolkata and surrounding areas are facing a severe raw material shortage. According to a report in Business Standard (May 25, 2025), jute prices have shot up to ₹6,800–7,200 per quintal, far above the government’s declared Minimum Support Price (MSP) of ₹5,650.
Why the sudden jump? It’s due to supply constraints, hoarding, and delayed harvest arrivals—creating a perfect storm of scarcity.
📍 Key Reasons Behind the Raw Jute Shortage
1. Delayed Crop Arrivals
Normally, jute from the eastern states begins arriving in the markets by June–July. However, erratic weather, pest attacks, and harvesting delays have caused fresh raw jute to arrive late, choking supply lines.
2. Hoarding by Traders
Despite the government claiming there’s sufficient jute stock (over 70 lakh bales including carryover), mill owners report that large quantities are being hoarded by traders to create artificial scarcity and drive up prices. This speculative behavior is hurting the entire ecosystem—from mills to final consumers.
3. Import Ban from Bangladesh
India had imposed restrictions on raw jute imports from Bangladesh—our traditional supplier—since 2022, under the Atmanirbhar Bharat (Self-Reliant India) mission. But this has made us more dependent on domestic sources, which are now falling short.
According to a Times of India report (June 2025), Bangladeshi exporters are now sitting on stockpiles and have appealed to India to allow limited imports, but the Indian government hasn’t lifted the ban yet.
🏭 How This Affects Jute Bag Production
As a jute bag manufacturer, our production heavily relies on timely and affordable procurement of processed jute fabric from Kolkata-based mills. But now:
- Many mills are running only 4–5 days a week instead of full capacity
- Fabric costs have risen by 20–30%
- Lead times for fabric delivery have increased due to lower mill output
This directly affects the cost and speed at which we can produce and deliver your favorite jute bags.
💰 Will Prices Go Up?
Unfortunately, yes—at least temporarily.
We’ve tried our best to absorb the costs for as long as we could, but the continued increase in raw material prices, coupled with mill closures, has made it unsustainable.
You may see a modest price adjustment in some of our jute bag collections in the coming weeks. Please know that this is not a profit-driven move—it is purely a response to raw material market conditions.
🌿 Why This Is Still Worth It
While price increases are never ideal, we want to remind our customers why jute remains one of the best materials for the environment and your daily use:
- 100% biodegradable and compostable
- Stronger and more durable than plastic or cotton bags
- Reusable for years
- Provides employment to thousands of rural workers in India and Bangladesh
Your continued support helps us keep this green economy alive—even during challenging times.
🛠 What Are Authorities Doing?
The Expert Committee on Jute (ECJ) met in Kolkata on June 3, 2025, to address this crisis (Business Standard). Key points from the discussion include:
- Assessing the actual vs. declared jute stock across India
- Cracking down on hoarders and black marketers
- Preparing to activate the Jute Corporation of India (JCI) to begin fresh procurement from farmers at MSP starting July 2025
But until fresh jute arrives in the market around September, the shortage—and higher prices—may persist.
🧭 Our Commitment to You
At [Your Brand Name], we are committed to:
- Transparency: You deserve to know why prices change and how they affect you.
- Sustainability: We will never compromise on our mission to promote eco-friendly alternatives.
- Fair Pricing: Any price adjustment will be minimal and temporary, reflecting only actual material costs.
We also encourage our customers to buy in bulk now, if possible, before further increases occur.
🙌 Thank You for Supporting a Sustainable Business
Your trust and support have helped us grow from a small initiative to a community that values both quality and sustainability. Times like these remind us how important it is to stand by each other, support local industries, and invest in a greener future.
Thank you for being part of our journey—and for continuing to believe in jute.
Warm regards,
[Your Name]
Founder, [Your Brand Name]
📩 Contact: [Your Email or WhatsApp]
