Question

mention any 2 challenges faced by the jute industry in india. state any 1 step taken my government to stimulate any its demand

Answer 1

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.
steps taken
1) Utilize unused assets of closed mills, to generate employment 

It has been decided to utilize the unused assets, such as land, of the three closed mills of NJMC (National Jute Manufactures Corporation Limited) for economic activities. The focus is to generate employment. Activities such as apparel park or textile hub shall be considered. The Government of West Bengal has been requested to support this initiative, while PricewaterhouseCoopers has been engaged to prepare the roadmap. 

2) NJMC to invite entrepreneurs to run Kinnison, Khardah and RBHM jute mills through licence route 

3) Heighten focus on diversified products 

NJB (National Jute Board) will intensify development and promotion of diversified jute products. Training of Women’s Self Help Groups, including that of groups of Tiger widows in the Sundarban, will be given particular emphasis. Reputed R&D institutes such as IIT Kharagpur, NITRA and IJIRA is being taken. NID (National Institute of Design) has been roped in, to assist in the development of new designs and for setting up of state-of-art design centre for shopping bags and other jute lifestyle products. 

4) Feminine hygiene products and low-cost carry bags 

These products hold a lot of promise. Efforts to commercialize them would be speeded up; all state governments would be requested to support the marketing of these products. 

Answer 2

Answer:

The most commonly occurring challenges that the jute industry faces is the

1. Stiff competition

2. Supply or demand competition.

Explanation:

• It is due to the products are made costliest and the jute industry is facing a crisis in the production of the resources and the demand and the supply sides of the manufacturing sector also imposed several restrictions on the part of the government.

• The challenge to make the quality product the challenge to enhance the yield per acres. Shortages of power and the underutilization of capacity.

• The steps take by the government to stimulate its demands are the enactment of the national jute policy in 2005, with the objective of increasing the production, and to keep a watch on the fluctuant prices of the jute.