Introduction: Export Jute

Hey Corpseed readers, today we are going to tell you about the procedure of jute export from India. Recently, the Indian government taking aggressive action to create favourable condition for every business and this is also known as "Ease of doing Business". Indian government have also Reduced export-import documentation requirements to improve the ease of business conditions in India. The procedure and documentation for getting permissions for import and import is become easier for every importer and exporter. Every importer/Exporter may require different documentation for the Import or export of their product and this paperwork depends on the nature of that product but Outlining the fundamental paperwork required for Export customs clearance in Exporting nations is still not difficult. This blog would help you to understand a general overview for the process of exporting jute from India.

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If you are a jute manufacturer and you are willing to export jute from India to some another country, then this blog could be really helpful for you to understand the complete procedure information about the export of jute from India to other countries. This blog consist the information about export statistics for jute, international buyers and importer countries of jute, exporting Jute procedures, and the customs duties and export taxes that apply to Jute exports from India to another country. Indian government wants to make jute exporting procedure simpler and efficient. 

Jute demands are rising day by day in the international markets. As per the data of the jute export analysis, jute is consistently imported from India to other 186 nations and territories. India exports the jute of worth 322.69 USD million in total. As per the government data of jute exports, there are top 5 jute buyers of India who purchase jute from Indian exporters in a very large amount, despite the fact that the combined export value of these top 5 nations is approximately 128.36 USD million, or 39.78% of the overall export of jute from India.

What are the Government Initiatives for the Jute Exporters of India?

The National Jute Board has introduces some programmes and initiatives to make the jute export process and modernise the method of manufacturing of jute in India. These initiatives promote the jute sector in India. Improved Cultivations and Retting Exercises (ICARE), Jute Diversifications Scheme, Jute Resource-cum Production centre (JRCPC), and Jute Retail Outlet Scheme for Exposure to Products and Artisans are some of the programmes intended to boost production.

Increased sales and exports of jute goods from India are the goals of market development and promotion, domestic market promotion activities (DMPA), and other publicity and promotion initiatives and these government schemes also increase the sales of jute in India as well. 

Here is list of some government schemes to promote the jute export from India to other nations:

• Export Market Promotion Activities (EMPA) Scheme: The government of India carries out several number of activities under Export Market Promotion Activities scheme to increase jute export of India. The activities of this scheme includes business delegations, road shows, international conferences, seminars, and fairs at the international level in India and across the world as well. 
• Market Development & Promotion scheme (MDPS): MDPS scheme is also a very important scheme for the export of jute from India to the jute importers. Market Development & Promotion scheme targets the development, promotion and expansion of the jute market in the world and in the India as well. MDPS scheme creates a specific platform for selling, marketing, and promoting platforms/avenues to Jute Artisans, entrepreneurs, women self-help groups, Jute MSMEs, Jute exporters, and Jute millers.
• Capital Subsidy for Acquisition of Plants and Machinery (CSAPM) Scheme: The National Jute Board (NJB) is a supreme authority for Jute market which comes under the Ministry of Textiles of Government of India. National Jute Board has launched the scheme of capital Subsidy for acquisition of Plants and Machinery and NJB is a responsible body for this scheme. The significant goal of CSAPM scheme if to provide benefits to the jute exporters of India. This scheme provides the financial support for the manufacturing of different types of jute products. During the time of 15th Finance Commission, this Program was launched under the National Jute Development Program (NJDP) umbrella plan of NJB (2021-26).

Export of Jute From India?

As we have already discussed that the demand of jute products is increasing across the world and over a period of time, jute and jute products from India have seen amazing increase in exports. As per the data of NJB (National Jute Board), the overall amount of jute products exports increased at a CAGR of 9% between 2015–16 and 2020–21. India exported jute and floor coverings with a combined total of nearly US$ 49 million in both March and February 2022 and this is a huge amount of export according to the Indian market. There are other various jute items, such as hand and shopping bags, gifts, ornamental fabrics, etc., are exported from India to other nations. Jute diversified products (JDP) have the highest share in the total shipped jute products and will export for an estimated US$ 163 million in 2020–21. 

According to statistics of the Indian Jute Mills Association (IJMA), exports of sacking and hessian is increasing if compare it to the previous year, when they were valued at Rs. 428.98 crores (US$ 56 million) and Rs. 267.11 crores (US$ 35 million), respectively, to Rs. 502.62 crores (US$ 65 million) and Rs. 363.45 crores (US$ 47 million) in 2021–22. There are some other important jute products exported from India such as yarn exports recorded an increase of 23.1% from last year and were valued at Rs. 416.70 crores (US$ 54 million). The value of raw jute exports increased drastically recently with the value of Rs. 177.43 crores (US$ 23 million) to Rs. 449.40 crores (US$ 58 million).

What Are The Licenses Required to Export Jute From India

If any exporter is willing to export jute from India to anywhere in the world, Then Exporter would require some of permissions and license from the government of India. 

• Import Export Code (IEC) from Directorate General of Foreign Trade (DGFT) - Import and Export plays a very important role in the export of jute products of India. Jute exporter’s business need to Export jute for their businesses and for that IEC (Import –Export Code) is one of the major document required for the smooth export of jute from India. Import –Export Code certificate provides a business identification number which allows a jute exporter to export jute from India to across the world. Nobody can export jute from India without IEC code (unless specific exemption). 
• Registration-cum-Membership Certificate (RCMC) from Export Promotion Council(s) – A Registration-Cum-Membership Certificate (RCMC) is a document which provides the verification to the exporter who deals in goods that have been registered under the authorised body of the Indian government. Every exporter must be aware of the aspects of his business while applying for RCMC certification. The exporter have to receive RCMC certificate from the Council responsible for the goods in his primary line of activity. The exporter could also obtain RCMC from the Federation of Indian Exporters Organization in cases when multiple products have not yet been resolved (FIEO).

Conclusion

In this article, we talked about the complete process of jute export of India and we have shared the complete methodology for the jute export from India to across the world. This article talks about the government schemes which provides benefits to the jute exporters of India. We talked about the guidelines and methods of jute export and how an exporter can avail the benefits for jute export from India. We have share the complete data of jute export of India. If you want any help regarding your jute export business or Tax benefits of the government schemes then you can visit our website Corpseed. We shall be glad to help you. Thank you for reading this blog, goodbye.