How to start a jute bag making business

Author :
Traffic Tail
| Updated On :
July 17, 2023

Jute is the vegetable Fibre, also known as golden Fibre. Jute is an important part of India, but not recognized as such. When the use of plastic has been banned the use of Jute bags and another material has increased. Now, more and more people started buying jute products. 

You must have seen jute bags in the market in different shapes and sizes. They have paved their way into the market like a revolution. You know after the use of plastic ban the demand for three products in exchange for plastic has increased. The three substitutes of plastic bags are paper bags, fabric bags, and jute bags. Among these three Jute bags is the cheapest, durable, reusable, and strong. 

Jute bags these days owning the market with their numerous attributes. If you are planning to start a jute bag-making business, it means you are planning to own the market with your skills. Jute has been and still an eminent part of India and is much loved by everyone. 

There are three major countries where Jute is grown and cultivated which are India, China, and Bangladesh. Among these three Indian has recently become the number one cultivator and producer of Jute. 

jute bags

You can see the opportunity in the market of Jute. If you are still up for the plan of starting a jute bag-making business, then this guide is for you. I will share every little detail about the jute bag-making business to assure you that this business will be flourishing in the market. So, let’s get started with this jute adventure. 

What is Jute?

As I have said above, Jute is a vegetable fiber that is used to make different things. Earlier, Jute bags were used to be made for packing the agricultural sand, produce fertilizers, and others. But now in this modern era, jute bags are used as lunch bags, shopping bags, purses, sling bags, travel bags, school bags, and many more. Jute has revolutionized the market with its different uses. 

According to the facts, India has become the largest cultivator and producer of Jute in the world. India itself is the largest consumer of Jute worldwide. Due to the different use of Jute bags, they are no longer remain simple and straight. They are becoming fashionable and attractive to people. 

You can make the following varieties of bags from Jute;

  • Conference bags
  • Carry bags
  • Calico bags
  • Designer bags
  • Ladies purse
  • Shopping bags
  • Promotional bags
  • Wine bottle bags
  • School bags
  • Lunch bags

These are the most common forms of Jute bags. Jute bags are pollution-free and biodegradables. Seeing all these benefits and its rising use from the past few years, it can be said that starting a jute bag-making business would be a fruitful idea. 

Is jute bag making popular in India?

There is a huge popularity of Jute bags in India. India consumes the most Jute around the world. Also, India is the highest cultivator and producer of jute in the world. Jute is naturally grown vegetable fiber and quite shiny, due to which it’s also called “golden fiber”. 

With the rise of fancy jute bags and the attached benefits of using jute, it has been seen that the Jute industry has gotten a spike. There is more consumption of jute-related bags and other products which is adding to its value. 

Its popularity has risen due to the introduction of advanced and attractive jute bags. So, if you are planning to enter this business then you are going to introduce the different sides of Jute to the people. 

The demand for jute bags is on the high side these days, so this is the right time to start your Jute bag-making business and earn a lot of Profit. People will no longer need to import Jute things from other countries and will even result in the rise of Jute export. So, you can sense the popularity of Jute bags in India. 

Is Jute bag making a profitable business?

The profit comes with its popularity and I guess you have got an idea of its popularity from the above point. So, yes, the jute bag-making business is very much in trend and popular in India. Hence, it is a profitable business. 

In a few years, the Jute bag-making business has seen a rise in consumption due to different varieties available in the market according to the needs of customers. 

There are the following reasons for its being profitable;

  • The major reason for its being profitable and popular is because it is safe for the environment. Also, if we see the jute, it is naturally grown Fibre which has its environmental benefits. 
  • Another important reason is that it is reusable, it can be easily reused. It is not a one-time usable product. 
  • It is also biodegradable, which is another reason for being profitable. 
  • It is cost-effective and very fancy which adds more sales to this product. Its fancy nature and designs make it more purchasable. 
  • It has a wide scope in India and as well as outside India, which is a major factor in its growth. 

These are the few points that say why the Jute bag-making business is profitable. If you are keen to make jute bags then you will be going to earn a lot of profit in a short span. 

Advantages of Jute bag making business

The jute bag-making business has a lot of advantages that are indeed undeniable. A few of the advantages we even have discussed in one or the other way. Its now time to discuss further more advantages;

So, the following are the few more advantages of starting a Jute bag making business;

  • Less investment– This business is one of the ancient businesses we are doing, so it doesn’t require a lot of investment. We can make it easily with less investment. We only require capital for important things like buying raw material and machinery for making the Jute bags. We can establish this business with less investment.

  • Market Potential– We already have talked about how it has been increasing its demand in the market. A lot and a lot of people are now shifting towards Jute bags from plastic bags. Because jute bags are comparatively durable and cheap, which makes people buy them. Not only in India but also internationally the demand for Jute bags has risen and will continue to rise.

  • Environment Friendly– As you know, the jute itself is a naturally made fiber which is called vegetable fiber and also known as golden fiber. So, when we are using natural things to make Jute bags then how it will harm nature? It is also biodegradable and doesn’t harm the environment in any way. Due to this quality, they have replaced the plastic bags which were harming nature.

  • Multiple designs– You must have seen multiple designs and sizes of Jute bags in the market. They come in different shapes and sizes to gain the attention of people. Because of their multiple designs, they are attracting more and more customers towards them. This is how people attain attention to remain in the competition. Jute makers are doing the same. Some of the fancy jute bags are Lunch bags, school bags, shopping bags, sling bags, travel bags, etc. 

These are some of the advantages of starting a jute bag-making business. There are a lot more advantages than these but those you will get to know when you will start running this business. So, think about it. 

You May Also Like These Articles

Types of Jute bags

There are different types of jute bags which we have discussed above many times. Now, it’s time to understand their types a little more. The different types of Jute bags are owning the market because of their high popularity and demand. These eco-friendly Jute bags have the following types of jute bags which are;

  • Sling Jute bags- These sling bags are made of jute to attract the attention of people at large. These are generally small in shape and size and also comes in different shapes. They are completely eco-friendly and eye-catching. They are stylish, too according to the latest trend. These sling jute bags are generally popular among young people and adds an aura to individual style. 

  • Lunch Jute bags- These bags are made up for containing lunches. You must have seen a lot of people carrying these lunch bags in their hands while going office. These are strong and also durable for use. These lunch bags are printed with different designs. These are customized with different styles which attain the attention of people. You can use it for containing your lunch box or any other thing you want. 

  • School Jute bags- If we go back to our old school days, we will find our backpacks made from jute. We used to have school jute bags which are very common at that time. But these days, very few people use jute schoolbags because there are a lot of other stylish bags in the market. Few people prefer to have jute school bags which work as a complete backpack for everyone. These can be chosen by travelers and are very easy to maintain. 

  • Shopping Jute bags- These are also some of the most demanding and famous jute bags in the market. Generally, shopping bags are used by ladies for different purposes. This is the main hype of their demand in the market. They buy shopping jute bags because these are durable and can carry everything in them. So, jute shopping bags are another type of Jute bag which has the same properties as others. 

The above are the main types of jute bags available everywhere in the market. These can be used for different purposes as written above. So, you must have seen that you have different choices under this business. 

What are the Raw materials and equipment required for making Jute bags?

How will you make bags without raw material? Is it possible? And how will you process the raw material into the final good? Will you do that? No, it is not possible to make anything without any material in hand and processing the raw material into different equipment.

So, if you want to start a jute bag-making business then you have to purchase the following raw material and equipment for that purpose. I am writing a list of raw material and types of equipment required for this purpose;

  • List of raw material
  • Bamboo sticks
  • Sewing thread for sewing the jute
  • Dyes 
  • Hook
  • Jute fabric
  • Printing gum
  • Chemicals and Auxiliary
  • Handles
  • Packing materials
  • Labels
How to start a jute bag making business

You can purchase these materials from the market near you easily. 

  • List of types of equipment
  • Dye paste stirrer
  • Wooden working table
  • Lamination machine
  • Side sealing machine
  • Wooden printing table
  • Screen printing machine
  • Rubber wiper
  • Water drums, mugs, tubes, stools, roper, etc
  • Electric fittings
  • Cottage steamer
  • Cutting machine
  • Scissors and measuring tapes
  • Heavy-duty sewing machine
  • Nylon thread
  • Regular sewing machine
  • Lockstitch machine

The above-written types of equipment are not highly technological and advanced rather they are very commonly required. It also depends on the scale of the jute business as to what kind of machinery you are using. When you are just starting, you can use these and when you will grow your scale you can purchase more advanced things. Thus, these are the highly required raw material and equipment required for this business. 

What is the process of jute bag making?

For any manufacturing business, you are starting, its process is the most important thing you have to learn and execute. Because when you will start a jute bag-making business, you will hardly have anyone to take help from. So, you need to do it on your own. Let me tell you the process so that you can get familiar with it and execute it properly. 

  • Step 1: In the first step, we buy everything we need to make a jute bag. A list of raw materials and required equipment is already given above. 
  • Step 2: Then, there are two kinds of jute bags laminated and unlaminated. If we want to sell laminated jute bags then we have to laminate the jute fabric rolls before cutting the fabric roll. This is our second step.
  • Step 3: The third step includes the fixing of the jute fabric roll on the table. 
  • Step 4: The fourth step includes the cutting of jute rolls according to the need with the machinery and gives it a shape you want. 
  • Step 5: Now, use screen-printing machinery to add a logo, a print, a design to the jute fabric roll. 
  • Step 6: The next step is to clean the printed jute fabric roll and let it dry. 
  • Step 7: Now, it’s time to stitch the cut pieces of jute fabric by using the sewing machine. 
  • Step 8: This step includes attaching the handles, zips, and buckles you have made ready to the fabric jute.
  • Step 9: This last step says that pack the jute bag and start marketing.

This is how the jute bag comes into the existence. You have to focus on each step equally and give attention to details. You must not leave any space for error. Once you will start doing it regularly, you will become an expert in doing it. So, follow the process and become the best jute maker along with the best jut seller.

What are the registrations necessary for the jute bag-making business?

For starting any business registrations are required. That is the first thing you do while starting your business. Similarly, when you are starting a jute bag-making business, you need to get your business register under a valid law. This is done because of running a business cautiously. So, I am sharing the following registration you will be liable to follow;

  • Register the form of business entity– When you are starting a business, you need to decide in what form you want to run it. So, when you will decide on the business entity like whether it is a company, sole proprietorship, partnership firm, etc it will be necessary to register it under the valid act.

    Running a legal business is safer than running a business without keeping with the legal requirements of law. If you are not aware of the legalities of a business, then you can take the help of any working legal professional. 

  • GST Registration- As you know, the rollout of GST has made it mandatory to take GST Registration under the GST Act. It regulates your indirect taxes i.e tax on the sale. It has a criterion for the registration, if you fall under that criteria then you have gotten your business register under the GST Act. For registration purposes, you can take the help of a GST Practitioner. 

  • Trade license- When you are starting a jute bag-making business, it directly means that you will trade the products you will make. So, for trading legally in the market you need to have a trade license with yourself. For taking a trade license, you have to take the authority from the state in which you are looking to trade. That’s how you will be frequently and freely trade in the different states. 

  • Import Export Code- If you are dealing in Jute, that probably means you will export it to different countries, too. As you know, India is the largest cultivator and producer of Jute which makes it more even to export to other countries.

    And to export, you need a code which is Import Export Code (IEC). Without the possession of this code, you will not be allowed to export to other countries. So, please make sure that you take this registration for the IEC code. 

These are the most important registration which you have to take mandatorily. You cannot deny the registration of any of the above, these are the requirement for the business you are running. 

What are the steps involved in the Jute bag-making business?

Now, we have reached a stage where you have to execute everything we have discussed above. So, I will now let you know how you can execute those things in steps that are very easy to follow and learn. These are the most eminent steps in starting a jute bag-making business of your own. 

So, let me write you all the necessary steps to be followed here in this business;

1. Craft a business plan

Crafting a business plan is the first step you should do. While crafting a business plan, you will keep in mind the important things of your business. For example, you will write down an investment plan, name of your business, plan on how to register your business, selection of business space, a list of raw materials required, a list of machinery required, process of making a jute bag, etc.

These things are going to be the mainstream of your business plan, which you will execute one by one and tick a mark before the things you have done. Of course, this step will ease your tasks and keep reminding you of the work you have left to do. This is how crafting a business plan helps. 

2. Select a type of Jute bag

This step involves the selection of the type of jute bag you are going to make. This is also important when you are just starting. You may start with one type or you may choose to make all the types of jute bag for a better reach.

If you are choosing one type of jute bag, then you have to make sure that you choose the one which is more prominent in the market and has a large consumer base. But if you are going with all the kids, then you don’t have to bother about the consumer base because one out of them will surely have a huge consumer base. So, choose wisely.

3. Do market research

Doing market research helps you in knowing what is trending in the market and what are your competitors doing. It is important to understand the market and its needs and demand. We have to work according to the market because, at the end of the day, we are working for the market and its customers.

So, before jumping to any conclusion please make sure that you have analyzed the market enough and now you are working on the terms of the market. Understanding how your customers are working will help you compete with them more wisely than foolishly. Always have an eye on their tricks and techniques, then apply them differently to your products to make them better.

Sign up for our exclusive newsletters.

Subscribe to check out our popular Tips & Tricks for business owners.

4. Plan your investment

When you are starting a jute bag-making business, you must know that you will have to invest a good some in your business. Without investment, there is no business. You will get rewards when you will invest, so plan your investment.

Make a draft plan on how you will going to invest, through what ways, and how you will going to arrange money if you don’t have one. Write down sources and ways for the same. Also, introspect where you will spend money on what raw materials and equipment.

If you will rent a space for your business, then also you will need money. All this planning will help you make a better investment plan. 

5. Choose a business location

If your home doesn’t have enough space for your business, then you will have to rent a space to run this business. For that, you will choose a location which will suit you best, in both money and accessibility terms.

You don’t have to rent a space which is large because you are just starting and you will have only one to two people with you. So, why spending too much on a space which will be half blanked and of no use to you. Rent a space which smaller. If you have space in your home to establish your business there, then you don’t even have to spend money on buying a space. 

6. Name your business

Can you name your business “jute bag making”? I guess, No. So, choose a name which suits best to your business. A name must be unique, simple, and easy to spell by everyone. It must not be hard to spell, otherwise, people will not be able to recommend your business to anyone.

When you are naming your jute bag-making business, make sure you register your unique name under valid law otherwise it may happen that someone else will take over your business name. So, to protect your unique recognition register your name. Also, your recognition depends on your name so make sure to choose a wise name. 

7. Get the legal formalities done

You know already how important is to do all the legalities related to your business. We have discussed above what is legal registration you would require to run this business lawfully. You are required to follow following legal registration to run this business legally;

  • Registration of business entity
  • GST Registration
  • Trade License
  • Import Export Code (IEC)

These are the important registration and licenses you are required to comply with. If you want to know in deep, then you can go up we have discussed all these registrations in detail above. 

8. Buy the Raw material

Now, when you are starting a jute bag-making business it is very obvious that you will require a lot of raw material for making the bags. So, for making those bags you need to purchase raw material, but do you know what kind of raw material is required? I guess, NO. Let me make you a list of raw material which is required while making jute bags. Here is the list of necessary raw material;

  • Bamboo sticks
  • Sewing thread for sewing the jute
  • Dyes 
  • Hook
  • Jute fabric
  • Printing gum
  • Chemicals and Auxiliary
  • Handles
  • Packing materials
  • Labels

These are the raw material you have to purchase which your business requires.

raw material

9. Purchase the required Equipment

After purchasing the raw material, you will require the necessary equipment to process all such raw material into final goods. Equipment is an important part of any business, especially when you are making something on your own. At the start, you don’t need advanced and technical equipment, you just need a few simple types of equipment which I am stating below. Make sure to purchase the following types of equipment for your business;

1. Dye paste stirrer

2. Wooden working table

3. Lamination machine

4. Side sealing machine

5. Wooden printing table

6. Screen printing machine

7. Rubber wiper

8. Water drums, mugs, tubes, stools, roper, etc

9. Electric fittings

10.Cottage steamer

11.Cutting machine

12.Scissors and measuring tapes

13.Heavy-duty sewing machine

14.Nylon thread

15.Regular sewing machine

16.Lockstitch machine

These are the important pieces of equipment you need to purchase.

10. Start making jute bags

Now comes the process of making a jute bag for your business. At first, you will have difficulty in making jute bags but with time and continuous practice, you will get an expert. When you are starting a jute bag-making business, it is expected that you will know the process.

If in any case, you are not aware of the process then you can learn it. I have discussed the process of making a jute bag above. You can follow those steps and try to make one or two jute bags before starting this business for getting sure that you can make it. 

11. Decide on a market place

This is another important step in this business, where you have to decide your target market, where you will decide to sell your products. As you know, the demand for Jute bags in India has seen a surge in the last couple of years, which makes it the largest marketplace for setting your business up. You have the following options of choosing a market place for your business;

1. Retail market- You can choose to sell your product at the retail market where you will directly deal with customers. You can open your shop in a crowded place where you can find more customers.

2. Export market You can choose to export your products to different countries where they demand jute-made bags. It can be a potential option if you choose so. 

3. Online market- This is a new age marketplace where there are lots of customers available 24*7 for making sales. You can open an online store and target online customers. 

These are the most eminent three market places for your business to flourish. So, choose your marketplace wisely. 

12. Build your brand

When you are running a business after sometimes it becomes necessary to build your market brand. It helps you to get the right recognition which your business deserves. Building a brand helps you target more customers and your business becomes recognizable to everyone.

While building a brand you must keep in mind the motive of your business. You must make sure that your brand represents your vision and mission. Brand building is not an easy task but you must be keen always.

13. Promote your business

This is initially very important to promote your business. It is about telling people what you do and how you can add value to their lives. You can take the help of social media for promoting your business on different social media platforms.

It will help you to target more customers. You can also take the help of a business website where you can put all the details about your Jute bag-making business by creating a website.

If you don’t know how to create a website then you can take the help of a digital marketing professional like us at Traffic Tail. We will create the best website for your business, which will be easily accessible and will bring a lot of traffic. 

14. Do marketing of your business

Marketing is an important phenomenon of any business. Make sure you use this phenomenon very smartly. You have to build a few marketing strategies on how you can market your business among more people. It expands your market value and makes you more popular. Following are the ways you can choose to market your business;

1. Social media marketing

2. Words of Mouth

3. Advertising

4. Online marketing

5. Conferences 

6. Seminars

These are some major ways of doing marketing of your business. You can also take the help of Traffic Tail if you don’t have an idea about marketing. 


The jute bag-making business is one of the best business ideas one can go for. It is sustainable and very popular among every age group. Also, it promotes the Jute of India in many countries. This business only wants your focus and creativity to make more jute bags. The fancier your bags will be the more customer you will able to tap. You can add any innovation to your products at any time, you don’t bother about the results. It will be alright. Just be as much unique as you can be. 

Now I want to conclude by saying this business idea can lead you to a different journey, where you can learn and explore along with growing this business. Just be furious and take action. If you are stuck somewhere, we are always ready to help you.

Frequently Asked Questions

Q1. What is Jute?

Jute is a vegetable fiber that is used to make different things. It is also known as Golden fiber. Earlier, Jute bags were used to be made for packing the agricultural sand, produce, fertilizers, and others. But now in this modern era, jute bags are used as lunch bags, shopping bags, purses, sling bags, travel bags, school bags, and many more. 

Q2. What are the types of Jute bags?

There are so many types of Jute bags available in the market, which are fancy and designed. I am sharing a few of the types below;

  • Sling jute bags
  • School Jute bags
  • Lunch Jute bags
  • Printed Jute bags
  • Shopping Jute bags
  • Traveller Jute bags

Q3. What are the advantages of the Jute bag-making business?

There are several advantages of the Jute bag making business which are given below;

  • Very little investment is involved in Jute bag making business
  • There is a huge market potential for the jute business
  • It is an eco-friendly business
  • You can adapt multiple designs for your jute printed bags

Q4. What are the raw material and equipment required for starting a jute bag-making business?

The list of raw material and equipment is given below which are necessary for starting a jute bag making business;

  • List of raw material
  • Bamboo sticks
  • Sewing thread for sewing the jute
  • Dyes 
  • Hook
  • Jute fabric
  • Printing gum
  • Chemicals and Auxiliary
  • Handles
  • Packing materials
  • Labels

List of equipment

  • Dye paste stirrer
  • Wooden working table
  • Lamination machine
  • Side sealing machine
  • Wooden printing table
  • Screen printing machine
  • Rubber wiper
  • Water drums, mugs, tubes, stools, roper, etc
  • Electric fittings
  • Cottage steamer
  • Cutting machine
  • Scissors and measuring tapes
  • Heavy-duty sewing machine
  • Nylon thread
  • Regular sewing machine
  • Lockstitch machine

Q5. What are the steps I should follow to start this business?

There are the following steps you should follow to start this business which are;

  • Craft a business plan
  • Select a type of Jute bag to make
  • Do market research
  • Plan your investment
  • Choose a business location
  • Name your business
  • Get the legal formalities done
  • Purchase the required raw material
  • Buy the right equipment
  • Start making Jute bags
  • Decide on a market place
  • Build your brand
  • Promote your business
  • Market your business

Related Posts

Request a FREE Proposal Now!

Just fill in the form, and let our experts handle the rest. Here’s what will happen next: