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2. Power supply is erratic
3. Machineries need to be upgraded in weaving andprocessing sector in particular
4. low output of labour
5. Stiff competition with synthetic fiber industry
Jute Textiles
`Location:
There are about 70 jute mills in India. Most of them are located inWest Bengal, mainly
along the bank of the Hugli river in a belt of 98km long and 3 km wide.
The first jute mill was set up near Kolkata in 1859 at Rishra. Afterpartition 3/4th of the
jute producing area went to Bangladesh.
Factors affecting location of jute textiles:
1.Proximity to the jute producing areas.
2.Availability of water transport.
3.Supported by a good network of railways, roadways and waterways.
4.Abundant water for processing raw jute.
5.Cheap labour from the adjoining states.
6.Kolkata as a large urban centre provides banking, insurance andport facilities for export of jute
goods.
7.Port facilities for export of jute goods.
Significance of jute textile in India:
India is the largest producer of raw jute and jute goodin the world but it is the second
largest exporter afterBangladesh.
It supports 2.61 lakh workers directly and another 40lakhs small and marginal farmers.
Being biodegradable it is ecofriendly. Growing globalconcern for ecofriendly material
opened an opportunityof large international market.
Challenges faced by the industry:
1. Stiff competition in the international market fromsynthetic substitutes
2. Stiff competition from other competitors likeBangladesh, Brazil, Philippines, Egypt and
Thailand.
Steps taken by the Government:
1. The internal demand has been on the increase dueto the Government policy of mandatory
use of jute
packaging.
2. In 2005 National jute policy was formulated withthe following objectives
* increasing productivity
*improving quality
* ensuring good prices to the jute farmers
*enhancing the yield per hectare
Mention any two challenges faced by the jute industry in India. State any one step taken
by the government to stimulate its demand. 2+1=3