The Indian Jute Industry faced an estimated loss of ₹1,250 crore, since production was cut short, after the COVID-19 Pandemic caused for a curfew call in March 2020.
As the Indian exports industry faced a -36.65% dip in April 2020, this is certainly the strangest time in the histroy of the Jute Industry of India.
Now as the Indian Nation goes vocal for local - Earthyy Bags looks upon the future, past the COVID uncertainty.
While it was predicted that after the Lockdows would lift, there would be a surge in demand for export orders since India would be able to leverage incentives, and have competitive advantage over China, which is the largest producer of Jute after India and Bangladesh.
But now the situation looks different. Despite being an Essential Good, the jute industry was shut down, and the Govenment chose to ignore the rules of Jute Packaging Material (JPM) Act, 1987, which was updated in 2018, and in many places plastic packaging was used for packing agro-goods.
But even after the exemption from further lockdowns, the exports industry is still at a stage of uncertainty, as the major markets of the US and EU have led to either cancellation of order or deferrals. This is the stage wherein Unsold Inventory and increasing needs for working capital are leading to recession, factory closures and even worker lay-offs.
The artisan industry is at a moment of strife. And while many celebrities, industrialists, and even Government aids have been much helpful for the daily wage workers, this cannot be a “solution”. Some factories, like Earthyy Bags have provided wages to their labours, but until and unless real production resumes full-fledgedly, factories won’t be able to pay off their workers out of their own pocket for the long-run.
How long this situation is going to last, is plain and simple, uncertain. Therefore, manufacturers are pretty much on their own to improvise smart solutions to leverage their inventory stocks as well as think out what to do with their production to sustain the daily and weekly payments.
The domestic market is the closest shore of survival, and B2B Jute Bags Suppliers have to look for more scope in the retail and eCommerce industries. Maybe one can broaden their products catalogue, for Home Goods, Eco-Friendly Packaging, Art and Fashion industries.
As the nation is heading back to normal, there would be many elements that will change permanently. While it remains to be a challenging time nonetheless, the tough is much likely to get going with the careful improvisation of jute bags manufacturing factories.