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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
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