Feasibility Study of Jute* Products with a view to develop Ecolabel Criteria through LCA and stakeholder consultation

1
Feasibility Study of Jute Products with a view
to develop Ecolabel Criteria through LCA and
stakeholder consultation
Jute Floor covering
Jute Yarn
www.jute.com/ecolabel
Jute Hessian
Jute Geotextiles
a natural fiber
Food Grade Jute Bag
Shopping bag
2
Table of Content

• Preamble and Introduction to Jute, a natural
  fiber
• Product categories
• Stakeholder Consultation
• Market survey of Jute
• Suppliers of Jute
• Life cycle environmental impacts
• Potential for Improvement
• Availability of data
• Current National and International legislation
  and agreements

3
Preamble

• Jute Manufactures Development Council (JMDC),
  Ministry of Textiles, Government of India has
  retained PwC Sustainable Business Solutions India
  to conduct the study on Life Cycle Analysis
  Study of Jute to develop a Ecolabel. The purpose
  of this ecolabel is to harness the emerging green
  markets in the European Union and the USA. These
  markets have a growing green customer base for
  sustainable and eco-friendly products. A type I
  ecolabel is envisaged that follows ISO 14024
  requirements and ISO 14040 based LCA is used to
  frame the initial environmental criteria. As
  required in section 6.2 of this standard, a
  consultation with interested parties is needed
  in establishing product environmental criteria
  and product function characteristics. This
  document presents a summary of the product
  category proposals for ecolabel based on the
  feasibility study conducted.

4
Jute a natural fibre

• Jute is one of the most versatile natural fibres
  having applications in packaging, textiles and
  non-textile sectors. Jute is predominantly a rain
  fed annual crop. Its cultivation is
  labour-intensive. Jute has a significant impact
  in Indias economy, providing sustenance to more
  than 4 million people including jute farmers,
  workmen, labourers and self employed artisans and
  weavers, especially in the Eastern and
  North-eastern parts of India, where it is the
  mainstay of the agro based industries. World
  over, it has been recognized that jute and allied
  fibres occupy a unique position as eco-friendly,
  bio-degradable renewable natural fibres with
  substantial value addition at each stage of
  processing. Please visit the following websites
  for more information on Jute from India
  www.jute.com www.jmdcindia.com.

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Objectives of the consultation process

• The aims and objectives of this feasibility study
  leading to the consultation process are
• to determine, for eco-labelling purposes, the
  structure of the eco-label to be established for
  selected six Jute products (Yarn, Hessian, Food
  grade jute bag, Jute geotextiles, Floor covering
  and shopping bag)
• to have a preliminary understanding of the
  environmental impacts that occur in the lifecycle
  of the recommended product group and to inform
  the selection of the environmental criteria.
• to identify specific jute product related
  disposal protocols in EU and USA

6
Product categories

• A stakeholder meeting with the participating jute
  industry representatives was held in Februrary
  2005 in Kolkata, India. Based on experience of
  the exporters and detailed interviews with them,
  the following jute product categories were
  proposed that could be amenable for inclusion in
  the ecolabel. The product categories suggested
  are also indicated
• Jute Yarn - yarns
• Jute Hessian - packaging material
• Food grade jute bag - food grade grain packaging
  material
• jute geotextile - Geotextile
• Jute Floor - Floor covering
• Jute Shopping bag - shopping bag or carry bag

7
Market survey overall jute consumption trend
globally
Jute products exports from India in 2006-07
8
Market survey for Yarn
Yarn is consumed mostly by Belgium. Yarn has a
growing market in the EU and in other parts of
the world Including in the USA. Europe which was
the largest producer and user of jute yarn is now
dependent on the imported jute yarn mainly form
the jute producing countries of Bangladesh and
India.
9
Market survey for Yarn
Share of Jute Yarn in total Export of Jute
Products from India
SourceJute, Kenaf, Sisal Abaca, Coir and Allied
Fibres, Statistics, June 2005, Published by FAO
The trend in the overall exports of jute yarns as
shown in the table resulted from an increase from
79.2 MT in 1998-99 to 65.4 MT in 2004-2005 (July-
December) reflecting a growth rate of 9.8. this
is an encouraging phenomenon for the jute yarn,
amongst the other jute products globally traded.
10
Market survey for Hessian

• EU and USA are clearly growing markets.
• UK is important from consumption point of view.
• Turkey and Belgium are important markets.
• From environmental awareness point of view,
  Germany is important.

11
Market Survey of Food grade Jute Bag

• Globally synthetic packaging materials such as
  polypropylene sacks have been widely accepted for
  the packaging of agricultural commodities. In the
  developed countries mechanized bulk handling has
  also affected the use of Hessian and sacking.
• India has a success story of developing RBO
  technology (IJIRA) for developing hydrocarbon
  free bags particularly used for packing edible
  commodities.
• It has been made mandatory by the International
  Cocoa Organization for the packaging of Cocoa.
  These bags meet the international specifications
  of packaging.
• Besides, producers of cocoa, Coffee, hazelnuts,
  almonds, Brazilnuts may also feel the utility of
  packaging these commodities in food grade jute
  bags.
• India exports of these bags have increased from
  2400 MT in 1999-2000 to 14200 MT in 2000-01 but
  declined to 5118 MT in 2001-2002

12
Market survey for Jute Geo Textiles
Jute based Geotextile has a huge market
potential, only 1 is Jute at present. The
synthetic material market can also potentially
switch to more Environment friendly JGT if the
functional requirements are met.
13
Market survey for Jute Floor covering

• India is the major exporter of floor covering and
  the value of exports have doubled from INR 487.1
  million in 1999-2000 to INR 1043.7 million in
  2003-2004.

In west Europe, Northern America, Japan, and
Developed countries the use of the other textile
mostly broadloom (Wall to wall), floor coverings
(tufted, woven, needle-felt, bonded and knitted
carpets) is most important. In developed
countries, particularly USA and Germany, there is
a high degree of awareness about the dangers of
indoor air pollution. Specifically, synthetic
wall to wall carpeting in association with carpet
glues has been associated with emission of toxic
fumes in homes and business in these countries.
Accordingly, there is a strong demand for many
natural fibre flooring products. Buyers
interested in natural fibres carpets also need
detailed information regarding the chemical
content of the carpets. They ask questions
regarding insecticides, organic fertilizers,
dyes, bleaches and carpet disposability. All
these issues must be satisfactorily addressed
before sales of jute carpets, can reach their
full potential. People who purchase carpets read
the labels carefully. This is partly because
carpets are considered a rather expensive luxury
item. Information that must be included on the
label are cleaning instructions, flammability
information, country of origin, fibre content and
any special care instructions
14
Market survey for Jute Shopping bag
Shopping bags clearly have an increasing trend in
exports (From INR 286.2 million in 1999-2000 to
INR 1065.7 million in 2003-04)
15
Jute Product Supply chain
Reuse, recycle or disposal Waste recyclers and
disposal authority
Raw Jute fibre producer Farmers (Unorganized
sector)
Use of Jute products Buyers Association and
end users
Primary and secondary market raw jute supplier
Jute conventional product manufacturer Jute mills
Jute diversified products SMEs (Unorganised
sector)
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Suppliers in the market place

• The Unorganized agricultural sector farmers
  grow jute and typically sell to primary jute
  markets
• The jute merchants form the link between the
  manufacturers and farmers
• Jute conventional product manufacturers jute
  mills domestic and foreign producer and medium
  size enterprises procure raw jute from jute
  merchants
• Jute diversified product manufacturer small and
  medium size enterprises procure basic processed
  jute (hessians and yarns) for value addition to
  bags, carpets etc.
• Buyers association who actually source jute
  products from manufacturer and supplies to the
  end user.
• After the useful life, most jute products can be
  reused, recycled or disposed through a waste
  manager as a municipal waste
• Jute that is wasted can be sent to a waste to
  energy plant as a climate neutral energy source
  or disposed in a landfill with methane capture

17
Life Cycle Impacts(Hessian)
Jute cultivation
Social and environmental impacts
Manufacturing Process
Resource Recovery
Climate neutral energy
Durability Performance
Packaging Shipping
Use
Environmental Impacts to consumer
18
LCA Jute Product Example
LCA is product specific (Hessian, IS 2818 I-IV,
40 , 8 OZ., 9 x10). Every product stage is
evaluated against each environmental impact
category as shown below.
19
Environmental Impact of Jute Hessian
Note source based on LCI studies X minor
environmental impact XX medium environmental
impact XXX major environmental impact n/a
information not available
20
Potential and need for Improvement
21
Potential and need for Improvement (Contd.)
22
Availability of data
23
Current Indian legislation for Jute
Jute related
24
Current Indian legislation for Jute

• Water Act and amendments
• The Water (Prevention and Control of Pollution)
  Cess Act, 1977,
• The Air Act and amendments
• Environmental (Protection) Act and rules
• Prohibition on the handling of Azodyes Rules
• The Manufacture, Storage and import of Hazardous
  Chemical Rules, 1989 and Amendment rules 2000
• The Hazardous Wastes (Management and Handling)
  Rules, 1989 and Amendment rules 2000 and 2003
• Notification regarding Dumping and disposal of
  fly ash discharged from coal or lignite based
  thermal power plants on land
• S.O.123(E), 14/2/2000 - Noise Pollution
  (Regulation and Control) Rules, 2000 and
  Amendment rules 2002
• The Public Liability Insurance Act, 1991,
  Amended, 1992/ Rules1991 as amended, 1993.
• The Indian Electricity Act, 2003 Rules 1956 as
  amended in 2002
• Contract Labour (Regulation Abolition) Act, 970
  Its Central Rule 1971
• The WorkmensCompensation Act 1923 as amended up
  to 2002/ Rules, 1923 as amended, 1998
• The Factories Act 1948 (as amended till 2001)
• The Boilers Acts 1923 (as amended in 1962)
  Rules 1950

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Current Indian legislation for Jute
The Child Labour Prohibition and Regulation Act
1986 The Equal Remuneration Act, 1976 The Minimum
Wages Act, 1948 The Plantations Labour Act,
1951 The Industrial Disputes Act, 1947 Contract
Labour (Regulation Abolition) Act, 1970 Its
Central Rule 1971 The Workmens Compensation
Act 1923 as amended up to 2002/ Rule 1923 as
amended, 1998 The Payment of wages Act, 1936 The
Employers Provident Funds Miscellaneous Funds
Act, 1952 The Payment of Gratuity Act, 1972 The
Industrial Employment Standing Orders Act,
1946 The Indian Electricity Act, 2003 Rules
1956 as amended in 2002 The Personal Injuries
(Compensation Insurance) Act, 1963 The Trade
Unions Act, 1926 Labour Welfare Fund Act, 1959
Rules (some states) Dangerous Machines Act
Rules Employers Liability Act Payment of Bonus
Act Payment of Bonus Rules Employees
Provident Fund Scheme
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International Treaties / Conventions /
Declarations India signatory

• The following Treaties/ conventions/ declarations
  are signed by India
• Agenda 21
• Rio Declaration
• Stockholm 1972
• Convention on Biological Diversity
• Convention to Combat Desertification
• Stockholm Convention on Persistent Organic
  Pollutants (POPs), (signed by India, but yet to
  be ratified)
• Cartagena Protocol on Biosafety
• The Basel Convention on the Control of
  Transboundary Movements of Hazardous Wastes
• Kyoto Protocol to the United Nations Framework
  Convention on Climate Change
• Intergovernmental Panel on Climate Change (IPCC)
• Convention on International Trade in Endangered
  Species of Wild Fauna and Flora (CITES)
• World Trade Agreement
• Helsinki Protocol to LRTAP on the Reduction of
  Sulphur Emissions or their Transboundary Fluxes
  by at least 30 percent
• Sofia Protocol to LRTAP concerning the Control of
  Emissions of Nitrogen Oxides or their
  Transboundary Fluxes (NOx Protocol)
• Geneva Protocol to LRTAP concerning the Control
  of Emissions of Volatile Organic Compounds or
  their Transboundary Fluxes (VOCs Protocol)
• United Nations Conference on the Human
  Environment

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Packaging and Waste laws in EU and USA

• EU specific
• Dyes that is carcinogenic, mutagenic or toxic to
  reproduction Council Directive 67/548/EEC of 27
  June 1967 on the approximation of the laws,
  regulations and administrative provisions
  relating to the classification, packaging and
  labelling of dangerous substances (1), and its
  subsequent amendments.
• Directive on the landfill of waste COM (91) 102
  (OJ C 190, 22.7.91) as amended by COM (93) 275
• 1999/31/EC- Landfill Directive
• Statutory Instrument 2002 No. 2980
• The Waste Incineration (England and Wales)
  Regulations 2002
• EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
  94/62/EC of 20 December 1994 on packaging and
  packaging waste
• LANDFILL DIRECTIVE
• REGULATORY GUIDANCE NOTE 5 (version 1.2 January
  2003)
• Waste Framework directive, (75/442)
• Hazardous wate directive (91/689)
• EWC (2001)- included hazourdous and non hazardous
  into one consolidated list
• Landfill regulation , 2002
• UK specific
• The Producer Responsibility Obligations
  (Packaging Waste) Regulations 1997 (as amended)
• the Producer Responsibility Obligations
  (Packaging Waste)(Amendment) Regulations SI 1999
  No. 1361
• the Producer Responsibility Obligations
  (Packaging Waste)(Amendment)(No.2) Regulations SI
  1999 No. 3447
• the Producer Responsibility Obligations
  (Packaging Waste)(Amendment)(England and Wales)
  Regulations SI 2000 No.3375.

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Packaging and Waste laws in EU and USA

• USA specific
• Identification of Solid and Hazardous Wastes (40
  CFR Part 261)
• Land Disposal Restrictions (LDRs) (40 CFR Part
  268)
• Used Oil Management Standards (40 CFR Part 279)
• Comprehensive Environmental Response,
  Compensation and Liability Act
• Emergency Planning And Community Right-To-Know
  Act
• Clean Water Act
• Safe Drinking Water Act
• Toxic Substances Control Act
• Clean Air Act
• Clean Water Act (CWA)
• Clean Air Act (CAA)
• Resource Conservation and Recovery Act (RCRA) ,
  1976

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Questionnaire for stakeholder consultation

• Questionnaire please mark one or more options
• Q1. Do you consider jute to be eco-friendly
  alternative to synthetic products? Please
  explain. (To know more about Indian jute please
  visit http//www.jmdcindia.com)
• Q2. What do you think are the major economic and
  environmental barriers to the use of jute?
• a) plastic and other synthetics are cheaper
• b) synthetics are easier to recycle and/or
  dispose as compared to jute
• c) jute has more environmental impacts as
  compared to synthetics
• d) any other, please write

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Questionnaire for stakeholder consultation
contd

• Q3. Which part of the life cycle of jute do you
  consider an environmental issue? Please explain
  your choice.
• a) agricultural practices of jute
• b) manufacture of jute products
• c) transportation of jute goods
• d) use of jute as packaging material, carpets,
  bags etc.
• e) disposal of jute to the environment
• f) any other
• Q4. How do you think jute should be disposed in
  your country / local context?
• a) jute should be incinerated
• b) jute should be landfilled in managed landfills
• c) jute should be used in a garden or in farming
  to blend with soil
• d) jute should be recycled for alternate
  materials such as non-woven fabrics that are used
  in gardening

31
Questionnaire for stakeholder consultation
contd

• Q5. Which industries in your country use jute?
• a) packaging of food and non-food products jute
  bags, Hessian sacks etc.
• b) carpet and floor coverings
• c) shopping bags and decorative items
• d) geo-textiles in civil engineering applications
  soil saver, slope protection etc.
• e) any other use such as in automobiles etc.
  please state if any.
• Q6. If environmental information on jute is made
  available through an ecolabel, do you think there
  could be wider acceptance of jute products?
  Please explain.
• Q7. If your answer to Q6 was yes, then how the
  ecolabel should be propagated in your country?
• a) by engaging product associations
• b) by advertising in magazines / newspapers
• c) by launching a website on eco-jute products
• d) any other

32
Questionnaire for stakeholder consultation
contd

• Q8. Are you aware of any buyer who purchased any
  of the jute products like jute yarn, hessian,
  Food grade jute bags, Floor covering, shopping
  bags and Jute Geotextiles from India?(Please
  specify the No. of buyers)
• a) 1
• b) 1-10
• c) 10-20
• d) More than 20
• Q9. What are the other competing alternate
  products(synthetic or natural) to the following
  jute products in your country?
• Jute Products Competing Alternatives(Both
  synthetic and natural)
• Jute Yarn
• Hessian
• Food grade Jute bags
• Shopping bags
• Floor covering
• Jute Geotextiles

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Questionnaire for stakeholder consultation
contd

• Q10. If you have any query or comment, please
  feel free to share with us. Your comments
• Thank you for taking time to respond. We would
  like to share information with you periodically
  and be grateful if you respond with your comments
  and suggestions.

34
Results of Consultation with interested parties
in Indian jute industry

• To select the product category, initial
  consultation was made with interested parties,
  mostly suppliers of both conventional and
  diversified jute products. The overall
  consultation process regarding Jute products can
  be concluded as follows

35
Results of Consultation with interested parties
in Indian jute industry
36
Socio-economic footprint of jute

• In the National Jute Policy 2005, Government of
  India recognizes the importance of jute to
  farmers and workers, and to the economy of jute
  growing states, and its special ecological
  importance world-wide, resolved that the jute
  industry will receive a fresh impetus in all
  respects.
• Government recognizes the significance of jute in
  Indias economy, providing sustenance to more
  than 4 million people (who earn less than a
  dollar a day per family) including jute farmers,
  workmen, labourers and self employed artisans and
  weavers, especially in the Eastern and
  North-eastern parts of the country, where it is
  the main stay of agro based industries. World
  over, it has been recognized that jute and allied
  fibres occupy a unique position as eco-friendly,
  bio-degradable renewable natural fibres with
  substantial value addition at each stage of
  processing. Government also recognizes the fact
  that this important sector of the economy has not
  been given its due importance in the recent past.

37
Socio-economics of Jute

• Jute provides not just raw material for industry
  but a life support system for over 4 million
  farmers, 6 million workers in auxiliary
  industries and innumerable thousands of lives
  virtually entwined in the bright twists of this
  golden fibre. The jute industry is considered to
  be one of the most labour intensive, providing
  direct employment to about 2.61 million workers.
  Moreover, it supports the livelihood of around 4
  million farm families and around 1.4 million
  people engaged in tertiary sector and allied
  activities.
• It is estimated that nearly 80 million people
  depend on jute cultivation, trade and industry,
  directly or indirectly, wholly or partly, for
  their livelihood. In addition to this, there are
  over 50,000 workers engaged in the jute mills who
  are not in the Companys Pay Roll.

38
Sustainability vision for Jute

• In its vision for the Jute sector, the Government
  of India recognizes that the Indian Jute Sector
  is endowed with multifaceted advantages and hence
  it shall be the policy of the Government to
  develop a strong and vibrant sector that can
• Ensure remunerative prices to the jute farmers in
  the country
• Produce good quality fibre and products to meet
  the growing needs of the country and
  international buyers
• Increasingly contribute to the provision of
  sustainable employment and the economic growth of
  the nation and
• Compete with confidence for an increasing share
  of the global market.

39
WTO on Jute

• Negotiations on environmental goods presently
  taking place in Negotiating group on
  non-agricultural market access (NAMA) with the
  definitional aspects being examined by Committee
  on Trade and Environment (CTE)-special session
• Many developing countries including India
  (TN/MA/W/10) have supported inclusion of
  environmentally friendly products such as jute
  products or those based on biodiversity, but no
  specific list has been submitted to the
  negotiating group on Non-Agricultural Market
  Access NAMA.