Jute is a natural fibre obtained as an extract from the bark of a plant named Corchorus and is also known as the golden fibre. It is one of the cheapest and the strongest of all natural fibres and considered as fibre of the future. It is a long, soft, shiny fibre that can be spun into coarse, strong threads. It is sown in the month of Feburary and the crop duration is 120-140 days. The major types of Jute are- White Jute (Corchorus capsularis) and Tossa Jute (Corchorus olitorius). India and Bangladesh account for over 90% of world production of ‘Raw Jute’.

Jute is cultivated almost exclusively in developing countries of East Asia and in some parts of Latin America. India and Bangladesh account for over 90 percent of world production. Jute constitutes a low proportion of the value of world trade, but its cultivation and processing is labour-intensive and therefore provides a livelihood and an important source of food security for many farmers and their families in Asia. The world production of Jute is around 3 million tones (Value: Rs.25000 Crores) a year. India is the world's largest producer of raw jute and accounts for approx 58% of world jute production. Bangladesh, China and Myanmar are the other important Jute producing countries in the world. Bangladesh is the largest net exporting country, accounting for over 75% of world trade in aggregated jute fibre and goods. Net exports from India, the second largest net exporting country, are expected to remain stable at approximately 185,000 tonnes.

India alone produces world's 50% of raw jute and 40% of finished jute goods. Most of the jute products produced in India is consumed in the domestic market. Hessian and sacking are the two important types of Jute goods in the country. While sacking accounts for 60%, hessian accounts for 20% of the total yearly production of Jute goods in the country. The raw jute output in 2008-09 was 1952.2 thousand tonnes, substantially lower than 2007-08 raw jute production of around 2017.7 thousand tonnes. The average production of Raw Jute is about 10 million bales (each bale of 180 kg, Value: Rs.1500 crores) and the size of the jute industry, which includes the Jute products, is around Rs. 4500 crores. The total consumption in 2008-09 was around 1764 thousand tonnes (98 lakh bales). This includes mills’ consumption of 89 lakh bales, and domestic consumption of nine lakh bales.

ICEX launched ‘Raw Jute’ contract on 16 Aug 2010. Since its launch, it has seen considerable participation by members and industry participants across the country and is expected to grow substantially. ICEX is offering a transparent and efficient platform for hedging the risk from the physical markets.