Problems of Jute Industry in India

The major problems of Indian Jute Industries are mentioned below:

1. High cost of production: Equipments for production are all worn out, outmoded in design. Many mills are uneconomic. Products are made costlier.
2. Storage of raw Jute: Jute industry suffers from inadequate supply of raw jute.
3. Shortage of Power Supply: Load-shedding creates problem of under-utilization of capacity.
4. 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.
5. 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.

1. Mandatory use of Jute goods: Mandatory use of Jute bags in food grains and sugar, cement and in fertilizers.
2. Modernization and Rationalization: Modernization and rationalization of Jute mills have been undertaken.
3. 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.