Geography

Jute Industry
Importance of the Industry :
1. It is a labour inensive industry so it provides emplyment to the people.
2. Jute product are the major items of exports.
3. India is the second largest exporter of jute products.
4. It account for more than 20 % of the total export earning.
Distribution :
There are about 70 jute mills in India. Most of these are located in West Bengal, mainly along the banks of Hugli river.
Factors responsible for their location in Hugli basin are :
1. Proximity of the Jute producing areas.
2. Inexpensive water transport.
3. Supported by a good network of Railways, Road ways and Water ways to facilitate movement of raw material to the mills.
4. Abundant water for processing raw jute.
5. Cheap labour is available their.
6. Kolkata as a large urban centre provides banking, insurance and port facilitate for export of Jute goods.
Problems of the Indian Jute Industry :
1. Problem of raw material.
2. International competition from synthetic substitutes and other competitions like Bnagladesh, Brazil, Egypt, Thailand.
3. Less Demand
4. High Prices.
5. High Production costs.
Steps taken by Indian governemnt to solve the problems :
1. Internal demand has been increased due to the government policy.
2. In 2005 National Jute policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers and enhancing the yield per hectare.
Market :
1. The main markets are U.S.A., Canada, Russia, U.K. United Arab Republic and Australia.
2. The growing global concern for environment friendly, biodegradable material, has once again opened the opportunity for jute products.