Question

Explain briefly the challenges faced by Jute industry in India.​

Answer 1

The major problems of Indian Jute Industries are mentioned below:

High cost of production: Equipments for production are all worn out, outmoded in design. Many mills are uneconomic. Products are made costlier.

Storage of raw Jute: Jute industry suffers from inadequate supply of raw jute.

Shortage of Power Supply: Load-shedding creates problem of under-utilization of capacity.

Growth of Jute mills in Bangladesh and loss of foreign market: Newly started jute industry in Bangladesh has captured some of the market of Indian jute goods.

Emergence of substitute goods against gunny bags and loss of demand for jute goods both at home and abroad: Indian jute goods have been losing ground in the world market primarily due to keen competition from synthetic substitutes and also supplies from Bangladesh and China.

Answer 2

The major problems of Indian Jute Industries are mentioned below:

1. High cost of production:

Equipments for production are all worn out, outmoded in design. Many mills are uneconomic. Products are made costlier.

2. Storage of raw Jute:

Jute industry suffers from inadequate supply of raw jute.

3. Shortage of Power Supply:

Load-shedding creates problem of under-utilization of capacity.

4. Growth of Jute mills in Bangladesh and loss of foreign market:

Newly started jute industry in Bangladesh has captured some of the market of Indian jute goods.

5. Emergence of substitute goods against gunny bags and loss of demand for jute goods both at home and abroad:

Indian jute goods have been losing ground in the world market primarily due to keen competition from synthetic substitutes and also supplies from Bangladesh and China.

PROSPECT:

The following measures have been taken for improving the Jute mills.

1. Mandatory use of Jute goods: Mandatory use of Jute bags in food grains and sugar, cement and in fertilizers.

2. Modernization and Rationalization: Modernization and rationalization of Jute mills have been undertaken.

3. Nationalization of ‘sick’ Jute mills: The National Jute Manufac­ture Corporation Limited (NJMC) under the Ministry of Textiles has taken over the management of sick Jute mills.

QUESTION: Why jute industry of india faced several problem?

ANSWER: West Bengal has the largest concentration of jute mills in India. There are 56 jute mills in West Bengal and they account for more than 80 per cent of the jute goods in India. Most of the mills are located within a distance of about 60 km from Kolkata.

There is a narrow belt of jute mills along the banks of the Hugli River. This belt is about 100 km long and 3 km wide. The main centres of jute industry in this belt are Rishra, Titlagarh, Serampur, Bansberia, Agarpara, Birlapur, Saikia, Budge Budge, Shyamnagar, Haora, Shibpur, Ulberia and Naihati.

Other important centres outside West Bengal are in Bihar (Gaya, Katihar, Purnea and Samastipur), Andhra Pradesh (Guntur, Ongole, Vishakhapatnam, Nellimorla, Eluru and Chitvalshah), Uttar Pradesh (Kanpur, Gorakhpurand Shahjanwan), Orissa (Cuttack), Madhya Pradesh, Assam and Tripura. The total production was about 16 lakh tons in 2000-01.

India is the second largest exporter of jute goods in the world. Due to tough competition with Bangladesh, India’s share in the world export has declined from about 80 per cent in 1960-61 to about 65 per cent in 1980-81. The main buyers of the Indian jute goods are USA, Russia, Germany, UK, Australia, Argentina, Myanmar and Singapore.

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