problems of cotton textiles and jute
Answers
Problems of Jute Industry in India
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.
The problems faced by cotton bags manufacturers of the Cotton Textile Industry in India:
Long staple cotton is not yet well grown in large parts of the country.
A lot of factories are old. As a result of which productivity has been lowered. The plants and machinery employed in many of the textile mills are literally out of date. Having been put to intensive use, they have deteriorated considerably.
High price of advanced machinery is an unavoidable constraint for the procurement of new machinery. As a result, the much-needed replacement had to be deferred for quite a few years.
The high cost of production is also a hindrance for the growth of this important industry.
There is some serious competition from synthetic fibers like polyester, etc.
With globalization, there is severe competition in the International Market from countries like Bangladesh, Japan, China, and Britain, etc.
Mill-owners experience great difficulties in obtaining the capital needed for the modernization process.