Question

Traditionally, jute has been a popular natural fibre in India. In the last few decades, however, the jute industry seems to have declined.
The factors behind this decline are:

Which of the above statement(s) is/are correct?

• A. Only 1, 2 and 3
• B. Only 1, 2 and 4
• C. Only 1, 3 and 4
• D. All of the above

Answer 1

The correct option is D All of the above

Reasons for decline of Jute industry in India:

• Partition- Jute producing area to East Pakistan now Bangladesh and Mills in India.
• Competition- Post 1971 Bangladesh started modernisation of jute industry in their country. Our industry still working on an old and outdated machinery
• Cropping Pattern– HYVs of other crops like paddy replacing jute cultivation
• Non Viability of jute cultivation- Input costs have increased and price of finished goods is not enough to cover increased costs.
• Alternative availability- Other materials like plastic are replacing jute in making of bags ropes covers etc. Plastic is cheap and easily available.
• Left Wing Extremism in WB, Chattishgarh, Odisha, and Eastern Bihar, traditional jute area left jute mills and industries heavily affected. Eg Northbrook Jute Mill
• Dilution of Govt policies- Government diluted Jute Packaging Materials (Compulsory use in Packing Commodities) Act, 1987 in 2012-13 to allow greater usage of plastic bags as packaging material for sugar and food grains.
• Substitute goods- Jute products are fast losing market to plastic, synthetic fibres and similar substitute products.
• Strikes and lockouts – Labour unrest, strikes and lockouts accompanied by violence adversely impacted Jute industry. This is driven by Poor financial conditions amid dwindling demand and labour problems.
• Illegal Imports –Illegal import of raw jute and finished products from Bangladesh also contributed to declining trend.