Why is the demand of jute decreasing in the domestic and international markets?
Answers
There is a decrease in demand for jute owing to the Government of India:
The jute mills often failing to supply bags to sugar mills on time, As a result, jute mills in India are not getting orders from sugar mills and the demand for jute has dropped.
The Government had increased the Minimum Support Price for Jute.
Jute prices are also sensitive to climate fluctuations in Bangladesh and the northwest of India (West Bengal), which are the areas that produce 2/3 of the total global jute production and have similar climates and weather conditions.
Despite expansion of jute growing area and intensification of its cultivation, India is not self-sufficient in the supply of raw material.
There was decrease in jute as India was the main producer of jute and there was decrease in production of jute in India as the British planters forced the Indian farmers to grow indigo on the most fertile part of there land