Problems of Jute Industry in India
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.
.Prospects: The following measures have been taken for improving the Jute mills.
- Mandatory use of Jute goods: Mandatory use of Jute bags in food grains and sugar, cement and in fertilizers.
- Modernization and Rationalization: Modernization and rationalization of Jute mills have been undertaken.
- 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.