India is the world’s largest producer of jute, and with the rising global demand for eco-friendly alternatives, jute bags have become a hot-selling export item. Lightweight, biodegradable, reusable, and stylish — jute bags are now preferred globally for both commercial and personal use. If you’re a beginner interested in starting your own export business, jute bags offer a promising opportunity.
This blog offers a comprehensive, step-by-step guide on how to start exporting jute bags from India, covering everything from market research to documentation and shipping.
Step 1: Understand the Market Potential
Before diving in, it’s important to understand why jute bags are in demand:
- Rising ban on plastic bags globally
- Eco-conscious customers in Europe, the USA, Canada, Australia, and the Middle East
- Supportive Indian government policies on jute exports
- Low cost of production with high profit margins
Popular types of jute bags in demand:
- Shopping bags
- Tote bags
- Wine bottle bags
- Promotional/event bags
- Drawstring gift bags
- Customized printed bags
Top Importing Countries:
- USA
- UK
- Germany
- France
- Australia
- UAE
- Netherlands
Step 2: Set Up Your Business Legally
To export jute bags from India, you must establish your business properly. Here’s what you need:
Company Registration
Register your company as:
- Proprietorship / Partnership / LLP / Pvt. Ltd. (Choose as per your budget and scalability plans)
GST Registration
Compulsory for all exporters, even if your turnover is below ₹20 lakh.
Import Export Code (IEC)
IEC is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT). It’s mandatory for all exporters.
Register with the Export Promotion Council
Register with EPCH (Export Promotion Council for Handicrafts) or Jute Products Development and Export Promotion Council (JPDEPC) for market access and export benefits.
Step 3: Source or Manufacture Jute Bags
You have two options:
- Manufacture your jute bags
- Source from reliable suppliers
If you’re just starting:
- Partner with jute bag manufacturers in West Bengal, Bihar, Odisha, Andhra Pradesh, or Tamil Nadu — the major jute-producing states.
- Visit B2B platforms like IndiaMART, TradeIndia, or participate in jute expos/fairs.
Things to consider while sourcing:
- Quality of jute fabric
- GSM (weight of the fabric)
- Stitching and printing quality
- Packaging options
- Customization capabilities
- Production capacity and lead time
Step 4: Product Branding and Catalog Creation
In international business, presentation matters.
Create a Product Catalog:
- High-quality images from all angles
- Mention sizes, GSM, material, printing options
- Pricing (FOB or CIF)
- MOQ (Minimum Order Quantity)
- Custom branding options
Build a Website:
- Showcase your jute bag range
- Add a company profile and certifications
- Include an export inquiry form
Step 5: Find International Buyers
Finding buyers is the most crucial step. Some proven methods include:
Online B2B Marketplaces:
- Alibaba
- IndiaMART
- TradeIndia
- ExportersIndia
- Global Sources
Participate in Trade Fairs & Exhibitions:
- Heimtextil (Germany)
- Ambiente (Germany)
- EPCH fairs (India)
- Dubai Expo
- Canton Fair (China)
LinkedIn & Email Marketing:
- Target importers, retailers, wholesalers
- Craft a professional pitch and send product catalogs
Social Media & Google Ads:
- Run ads targeting countries with high demand
- Use Instagram or Pinterest to showcase your eco-friendly bags
Step 6: Pricing and Quotation
While preparing a quotation for buyers, include:
- FOB (Free on Board) price or CIF (Cost, Insurance & Freight)
- Product details and packaging info
- Payment terms (LC, advance, part payment)
- Lead time for production
- HS Code (e.g., 42022290 for jute bags)
Pro Tip: Use realistic pricing. Include your profit margin but remain competitive.
Step 7: Packaging and Labelling
Good packaging ensures your jute bags reach safely and professionally.
Packaging Tips:
- Use waterproof inner liners
- Bulk pack in export-quality corrugated boxes or bales
- Add silica gel packets to avoid moisture
- Label with product name, quantity, origin, and barcode (if needed)
Step 8: Shipping and Logistics
Choose a freight forwarder or export agent to help you with logistics.
Export Process Flow:
- Buyer places an order
- Manufacturing or sourcing is completed
- Goods are packed and inspected
- Customs clearance and shipping
- Documents sent to the buyer or bank (in case of LC)
Required Shipping Documents:
- Commercial Invoice
- Packing List
- Bill of Lading / Airway Bill
- Certificate of Origin
- Fumigation Certificate (if required)
- Insurance Certificate (if CIF)
- GSP Certificate (for duty benefits in the EU)
Step 9: Payment and Compliance
Common international payment methods:
- 100% Advance Payment
- 50% Advance / 50% on Shipment
- Letter of Credit (LC)
- PayPal or International Bank Transfer (for small orders)
Ensure all compliance with DGFT, RBI guidelines, and customs laws.
Step 10: Register for Export Benefits
Indian exporters can benefit from multiple schemes:
- RoDTEP (Remission of Duties and Taxes on Exported Products)
- Interest Equalisation Scheme
- Duty Drawback Scheme
- MEIS (if applicable)
Register with the ICEGATE and DGFT portals to avail these.
Final Tips for Success
- Always keep samples ready to send to interested buyers
- Offer customization — international buyers love unique designs
- Keep track of currency conversion rates
- Stay active on B2B platforms and social channels
- Focus on quality and timely delivery — it builds long-term trust
Conclusion
Exporting jute bags from India is not just a business — it’s an opportunity to tap into the booming global demand for sustainable products. With the right planning, legal setup, and marketing, even a small exporter can build a successful international brand.
Whether you’re a manufacturer or a trading startup, follow this step-by-step guide to launch your jute bag export journey with confidence and clarity.
