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Jute Industry Set for 15% Volume Growth in FY27 Amid Stronger Demand: Crisil Report
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News18•21-09-2026, 17:15
Jute Industry Set for 15% Volume Growth in FY27 Amid Stronger Demand: Crisil Report
- •Jute manufacturers are projected to see a 15% sales volume growth this fiscal year, reversing a 10% annual decline over the previous two years, driven by stronger demand and a favorable cost environment.
- •Domestic demand is expected to increase by 20% this fiscal, recovering from a similar cumulative decline, as moderating input costs lead to softer product prices and renewed interest in jute products.
- •Export demand is also improving, supported by growth in downstream sectors like home textiles and lifestyle products, and potential benefits from rationalized US tariffs.
- •Profitability is set to receive a significant boost from easing raw material costs; raw jute accounts for 60-65% of operating expenses, and lower fiber costs are expected to expand operating margins by 130 basis points to nearly 9% in FY27.
- •Beyond cyclical recovery, the industry benefits from structural shifts towards sustainable materials, with growing environmental awareness and demand for biodegradable alternatives creating new opportunities in geotextiles, home decor, and industrial packaging.
Key Questions Answered
Jute manufacturers are expected to see a sales volume growth of 15 per cent this financial year, reversing an annualised decline of around 10 per cent over the previous two fiscals.
The recovery is driven by a revival in domestic demand, improving export prospects, and softer raw jute prices. Additionally, operating margins are projected to expand by 130 basis points to nearly 9 per cent due to lower fibre costs and improved capacity utilisation.
Domestic demand is projected to increase by about 20 per cent this fiscal year, reversing a cumulative decline at a similar pace over the preceding two years.
