written by Khatabook | September 8, 2021

How to Start A Business Of Jute Bag Making

In the 21st century, plastic pollution is a never-ending problem. With increasing awareness, consumers and manufacturers have started to switch to recyclable and degradable plastics. The choices of viable alternatives are:

  • Paper bags with limited carrying strengths.
  • Cloth bags from denim, fabrics like cotton etc., also tear when stretched and carrying heavy items.
  • Jute bags, which are natural, degradable and solid bags with great carrying and loading capacity.

Jute bags are long-lasting and can serve you with multiple purposes for carrying low or heavy items. Therefore, jute bag making is a lucrative business opportunity. The best part of getting into the jute bag business is that it is not capital intensive, has a simple manufacturing process, and has excellent profit margins.  So, looking to start a home-based business? Try jute bag manufacturing. 

Let us explore the nitty-gritty of setting up this business. 

Why Jute business?

Jute is found naturally and is a plant or vegetable fibre that can be easily grown. The extracted fibre is then spun into jute threads which jute bags manufacturers weave to develop into jute fabric. The strength of these fibres, their soft texture and shiny appearance has earned jute the name of ‘golden fibre’. Jute is among the earth’s strongest fibre made from plant and natural material. 

Since the 17th century, India has been commercially trading in jute products and bags. When plastics were developed and popularised, the jute market plummeted. However, artificial plastics slowly revealed their disadvantages and effects of the environmental pollution it leaves behind. Thus, jute in recent times has seen a spurt of activities where jute bags are becoming popular fast. Hence, jute bag making is an excellent and profitable business idea.

Due to their excellent load-bearing capacities, jute sacks were and are widely used for packing fertilisers, agricultural produce, cement, sand, etc. Today, we have jute lunch bags, shopping bags, sling pouches, purses, travel bags, school bags, water bottle covers, and more. To make it more appealing to customer needs, lamination of the jute bag and lining them with cloth, muslin, waterproof fabrics, low-density polyethene (LDPE) has made jute a fashion statement besides being the most environment-friendly, durable and workable natural materials. Add a bit of bling to it, and it is ramp-ready!  

Take a quick look at the process of transforming the natural plant to jute fabric undertaken by jute manufacturers

shown below:


The bundled jute fibre stalks are put through several processes like retting, strepping, washing, removing excess water, drying in the sun, bailing, packaging and transportation to the mills where the threads are single or double woven into jute fabric.

 Advantages of Jute Bags: 

We can quickly run through the many advantages of Jute bags:

  • Jute bags are eco-friendly, biodegradable natural plant fibres, unlike plastics. 
  • They are reusable, unlike paper bags which lack carrying strength and plastic bags, which are single-use and need disposal, being non-degradable.
  • Jute bags can be innovatively used to carry varied items like fertilisers, agricultural produce, jewellery, food grains and more.
  • They can be lined, laminated, UV stabilised, made waterproof, splash-resistant etc., through a very simple process.
  • They are breathable and anti-static fabrics that lengthen the life of produce transported in it like food grains, agricultural produce, freight items etc.
  • They are affordable, trendy, light and strong, with a never-ending plant resource base.  
  • Jute bags are excellent for branding as complementary products and last long.

How to set up a jute bag manufacturing unit?

The process of how to make a jute bag is easy; however, setting up a unit for manufacturing is integral for this. You will need training, investment capital, thorough research of raw material suppliers, understanding the market, production machinery, employees, registrations, and much more. 

Let’s explore them one by one.

Also Read: How to Apply for the Best Business Loan in India? - Types of Govt. Loan Schemes

Jute Bag Making Business Training Institutes:

Want to know where you can learn the ropes of the jute business in India? NCJD (National Centre for Jute Diversification) and the JMDC (Jute Manufacturers Development Council) offer excellent short term courses and hands-on training.

The jute bag making courses they offer are:

  • Basic Training Programme on jute bags manufacturing training.
  • Advance Training and Design Programme
  • Advance Training Programme on how to make jute products.
  • Technical know-how dissemination Programme
  • Demonstrations of jute bags manufacturing process.
  • Buyer-Seller Meets. 

Eligibility for Micro, Small and Medium Enterprise (MSME) Registration Permissions:

Several registrations are required for a jute bag manufacturer that need to be completed before you can register your venture as an MSME enterprise. They can be summed up as below:

  • Trade license for trading in jute bags in any state.
  • Company registration for registering your enterprise as a Private Limited Company.
  • Small Scale Industries (SSI) unit registration for eligibility for industrial sheds, land and assistance from the DIC or District Industries and Commerce Department of the State.
  • Goods and Services Tax (GST) registration is mandatory for sales and waybills within or across the State and cover both the State and Central taxes or Value Added Tax (VAT).
  • International Organisation for Standardization (ISO) certification.
  • Importer Exporter Code (IEC) registration

Market Research:

  • Focus on where you get your raw materials from, to whom you will sell the bags, the present prices, trends, competition and market potential.
  • Explore the wholesale dealers of the  jute bags manufacturing process to find raw material, suppliers, jute bag machinery suppliers, manufacturers and potential customers.
  • Next, make a jute bag manufacturing business plan, pr ototypes and draw up your project report. 
  • After research from financial estimates, your objectives, budgets, timelines, targets, location, staffing decisions, and marketing strategies, ensure you have all the details with you.
  • Choose your company name, logo and register your unit.

The Working Process of Jute bag making:

The actual process flow chart of the jute bag manufacturing process is simple and just a small part of establishing a jute bags making unit. Here’s the process in steps.

  1. Buy the basic woven or pre-treated jute fabric rolls from the manufacturers or wholesale suppliers, depending on your estimate of quantities required by you. Try buying them from West Bengal, Odisha, Assam, Meghalaya, Andhra Pradesh or Tripura since jute is primarily sourced here, and there are plenty of jute bag manufacturers and mills.
  2. Jute fabric is available without lamination. If you need lined or laminated bags, consider lining the fabric or laminating it yourself before cutting the roll to sizes for jute bag making.
  3. Spread and fix the jute fabric roll to the cutting table.
  4. Cut as per your bag pattern to required shapes and sizes. Ensure minimum wastage of fabric.
  5. Embellish and print your text, designs, logos etc., on the cut jute-roll pieces as per your patterns.
  6. Wash the jute fabric pieces and dry them out. 
  7. Next, stitch the pieces together using a heavy-duty sewing machine.
  8. Attach the zips, buckles, handles, base pieces etc.
  9. Pack your customised jute bags in requisite numbers as bundles for marketing. 

Raw Materials List:

The raw materials list given below is an indicative list of materials used by a jute bag making machine in jute bag making. 

  • Rolls of jute fabric
  • Lining rolls and lamination rolls
  • Dyes and colours
  • Gum for printing
  • Sewing nylon or cotton threads
  • Auxiliaries and chemicals used for waterproofing etc
  • PVC buckles, handles, zips, sequins, embellishments etc
  • Packing materials
  • Labels

West Bengal, Odisha, Andhra and some Northeastern states in India and its neighbouring country, Bangladesh, have an abundance of jute fibre and are the leading producers of jute globally. Always consider sourcing your materials from genuine and reputed sources and mills. Also, check out the jute bag making machine price before you start into this business.

Machinery List:

You only require simple jute bags manufacturing machines for jute bag manufacturing. Here’s a list of assets you will need: 

  • Working table with roll fasteners and guides.
  • Printing Table
  • Lamination machine
  • Screen-printing machine
  • Dye and Paste bowls, stirrer, applicators, brushes etc.
  • Cottage Steamer
  • Water vats, drums, clips, mugs, tap connectors and tubes etc.
  • Drying lines.
  • Electric bulbs, fans etc
  • Heavy-duty electric or manual sewing machines, measuring tapes, scissors, oiling cans, etc.
  • Cutting machine
  • Nylon and cotton thread boxes and spools.
  • Over-locking and Lockstitch Machines
  • Side-Seal Machine.
  • Chairs, tables, stools as required.
  • Pattern sheets, bins, racks, etc.

Sales promotion:

Marketing and promoting your products is the most critical step of converting your jute bags into money! Promote your product through social media, WhatsApp groups, and business websites. Use both online and offline promotion measures to spread the news faster. Firstly, try retailing the bags in your local area and slowly look for other locations and more significant markets. As already pointed out in this article, your market research for potential customers will help you target the agricultural and vegetable markets, wholesale markets, malls, sand and cement suppliers, other manufacturers, etc. You can also venture into the designer bags market.

Also Read: Can A Government Employee Run A Business In India


Being an entrepreneur is a full-time multi-tasking job that has no shortcuts and loads of hard work. Focus on creative solutions, experiment and be innovative. Take the grind of the accounting process by choosing a good accounting software like Khatabook or Biz Analystwhich allows you to track your business progress with ready-to-use software for daily accounting purposes. Remember that the jute bag-making unit will surely succeed and reap the returns after a lot of hard work. 

All the best for your venture!


1. Can you suggest some marketing techniques for jute bags?

Try out any of the below suggestions for marketing jute bags:

  • Word of mouth and satisfied customer reviews.
  • Social media marketing, WhatsApp groups, YouTube, Instagram etc.
  • A comprehensive business website
  • Major festival sales with discounts. 
  • Direct marketing and door-to-door campaigns.
  • Online shopping platforms.
  • Tie up with NGOs, local stores, malls etc.
  • Corporate gifts and designer bags.
  • Seminars, Conferences and promotional activities like sports meetings etc.

2. Can you suggest some sites for technological support for jute-bag units?

Definitely! Some of the reputed suggestions are below:

3. Is a jute bag manufacturing plant profitable in India?

West Bengal in India supplies 50% of India’s jute production. Jute bags are the only viable alternative to plastic bags. If you have the spark of entrepreneurship in you, small investment capital and plan well, there’s no reason why jute bags manufacturing cannot be your own success story of reaping in profits. Remember, the Government of India is promoting jute, the banks are focused on promoting small industries, and the jute market is seeing a quantum leap worldwide!

4. Is complete training available at training institutes on the jute bags manufacturing process?

Try the NCJD or National Centre for Jute Diversification, and the JMDC or Jute Manufacturers Development Council which offer excellent short term courses and hands-on training.

 5. Can I avail myself of industrial land to set up my jute factory?

Contact the District Industries Centre in your State for industrial land availability and allotments after registering your unit. You can also enrol in an Entrepreneurship Development Program to polish your skills and get some government handholding.

6. What kind of handles can I use in jute bags?

Depending on your design, you can use jute straps, cloth straps, plastic handles, drawstring handles with eyelets, jute string handles, rope handles etc. Attach the handles by evaluating the capacity of the bag and you’re good to go. 

7. What is the process followed to convert jute fibre into fabric?

The bundled jute fibre stalks are put through several processes like retting, strepping, washing, removing excess water, drying in the sun, bailing, packaging and transportation to the mills where the threads are single or double woven into jute fabric.

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