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In view of challenge faced from cheaper prices of synthetics substitutes, more thrusts have been given on diversification of jute products.

Major aim of Diversification :- To enable jute based products to make successful inroad in the Textiles Sector.

Thrust Areas of value-added diversified Jute Products :- Jute Handlooms and Handicrafts, Non-woven and Industrial Application, Jute Rigid Packaging, Decorative and Geo-Jute etc.

Intensive R & D efforts through various research institutes mainly funded by Govt. of India have resulted in remarkable breakthrough in product diversification .

    • Hydrocarbon free Jute Products for packing food grade products like cocoa, coffee, shelled nuts etc.
    • Major R & D works in Modern Spinning System.
    • Development of completely biodegradable jute based sanitary napkins, which has been certified by the National Test House.
    • Production of jute blended yarns with jute as the major component using Jute/Viscose, Jute/Acrylic, Jute/Cotton jute content varying from 60 to 70% by weight. Such yarns suitable for blankets, shawls, pullovers and as also thick dress materials.
    • Production of fine blended yarns using Jute/Cotton, Jute/Silk, Jute/Wool etc. for apparel use Jute Content is 30-40%.

Jute based fabrics used particularly in areas of furnishing, upholstery, carpets, blankets and other home textiles. R & D Institutions have developed Jute Reinforced Composites in the form of flexible, semi rigid sheet and rigid board to substitute wood, timber, and plywood.

UNDP jute programme has also facilitated diversification of jute sector by developing new technology, promotion of employment opportunities by encouraging new entrepreneurs to set up production units and development of indigenous machine manufacturing sector . Some of the on-going projects are use of jute for paper production , jute based needle-punched carpets, development of multi-component yarn from wool, jute and other fibres for floor coverings blankets and knitwear.

National Jute Board (NJB) is also providing infrastructural facilities by way assisting entrepreneurs, artisans, designers, manufacturers, NGOs.

Government has various schemes for promotion of Jute Geo-Textiles (JGTs) – both through the Office of the Jute Commissioner, Kolkata and the National Jute Board (NJB), Kolkata. Majority of these projects are administered by the NJB. JGT is in itself a non-conventional mode of usage of jute. Its main areas of usage are – road protection, slope stabilisation, river-bank embankment, soil saver, agro-mulching, bird-nets etc.

The Scheme for Promoting Usage of Geotechnical Textiles in North Eastern Region was launched by the Ministry of Textiles in March 2015 for a period of five years. For the Office of the Jute Commissioner, it is being implemented by Indian Jute Industries Research Association (IJIRA) as the Centre of Excellence (CoE) for Jute-Geo-textiles in the NER. The basic objective of this scheme is to demonstrate use of Geotechnical Textiles (including Jute geo-textiles) as a modern cost effective Technology in the development of infrastructure fragile geological condition of North Eastern Region and to improve the durability, function and life of infrastructure in North East. The total financial outlay of this scheme is ₹ 427 Crore. Road projects in Manipur and slope stabilization projects in Meghalaya are being implemented through this scheme at present.