Question

Factors responsible for present crisis in the jute industry in india

Answer 1

India’s first jute factory in India was established at Rishira, near Kolkata in 1854. Prior to independence, India had monopoly in the both production of raw jute and jute manufacturing. However, Jute industry is marred with several problems right since independence. The first major blow to this sector was given by Partition.  On partition, most of Jute mills remained in India while major Jute producing area went to East Pakistan (Now Bangladesh). The problem of raw material created a crisis in the Jute sector when Pakistan denied supply of raw Jute to India. The area extension under Jute were one of the key efforts of the Government in this sector.
The current problems of Jute Industries are as follows:



Shortage of Raw Material

Obsolete Mills and Machinery

Competition

Decrease in the Demand

Strikes and Lock-outs