Calcutta (now Kolkata) had the raw material close by as the jute growing areas were mainly in Bengal. There was an abundant supply of labor, ample coal for power, and the city was ideally situated for shipping to world markets. The first jute mill was established at Rishra, on the River Hooghly near Calcutta in 1855 when Mr. George Acland brought jute spinning machinery from Dundee. Four years later, the first power driven weaving factory was set up.
By 1869, five mills were operating with 950 looms. Growth was rapid and, by 1910, 38 companies operating 30,685 looms exported more than a billion yards of cloth and over 450 million bags. Until the middle 1880's, the jute industry was confined almost entirely to Dundee and Calcutta. France, America, and later Germany, Belgium, Italy, Austria, and Russia, among others, turned to jute manufacturing in the latter part of the 19th century.
Jute trade is currently centered around the Indian subcontinent. Bangladesh is the largest exporter of raw jute, and India is the largest producer as well as largest consumer of jute products in the world. The local price of Jute Goods in India is the international price. Nearly 75% of Jute goods are used as packaging materials, burlap (Hessian), and sacks. Carpet Backing Cloth, the third major Jute outlet, is fast growing in importance. Currently, it consists of roughly 15% of the world’s Jute goods consumption. The remaining products are carpet yarn, cordage, felts, padding, twine, ropes, decorative fabrics, and miscellaneous items for industrial use. Jute has entered the non-woven industry as it is one of the most cost effective high tensile vegetable fibre. Therefore, the demand for Jute has made its way into the automotive industry. Jute is now being used to manufacture more eco-friendly interiors for cars and automobiles.
Jute is the second most important vegetable fibre after cotton; not only for cultivation, but also for various uses. Jute is used chiefly to make cloth for wrapping bales of raw cotton, and to make sacks and coarse cloth. The fibres are also woven into curtains, chair coverings, carpets, area rugs, hessian cloth, and backing for linoleum. While jute is being replaced by synthetic materials in many of these uses, some uses take advantage of jute's biodegradable nature, where synthetics would be unsuitable. The fibres are used alone or blended with other types of fibres to make twine and rope. Jute butts, the coarse ends of the plants, are used to make inexpensive cloth. Conversely, very fine threads of jute can be separated out and made into imitation silk. As jute fibres are also being used to make pulp and paper, and with increasing concern over forest destruction for the wood pulp used to make most paper, the importance of jute for this purpose may increase.