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Crisil Ratings flags recovery prospects for India’s jute industry in FY27
Sep-22-2026

Crisil Ratings in its latest report has said that India’s jute industry is set for a potential recovery this fiscal (FY27) after facing two challenging years of subdued demand, high raw material costs and pressure on profitability. A pickup in domestic demand, improving export opportunities and easing raw jute prices are expected to support growth, improve profitability and support the industry's credit profiles.

According to the report, sales volumes are likely to rise around 15% this fiscal, reversing the annualised 10% decline recorded over the previous two fiscals, aided by stronger demand and a more favourable cost environment. The domestic market, which contributes nearly 85% of industry revenue, remains the cornerstone of growth. Domestic demand is projected to increase about 20% this fiscal, reversing a similar cumulative decline over the preceding two years. 

The report noted that the downturn was largely triggered by a sharp rise in raw jute prices, which manufacturers passed on to customers, dampening demand and prompting a shift towards lower-cost alternative packaging materials. With input costs now moderating, product prices are expected to soften, supporting a recovery in demand.

Crisil Ratings further stated that export demand is also beginning to show signs of improvement. Growth in downstream sectors such as home textiles, lifestyle products and other value-added jute applications is expected to support exports. In addition, the rationalisation of US tariffs from the elevated levels seen last fiscal could improve the competitiveness of Indian jute products in global markets.


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