There has been a gradual decline in the jute industry, because it has been facing the following challenges:
(i) Lack of Demand:
There is a decline in demand for jute products due to several reasons. (ii) Machinery —Most of the units of jute industry is using old and outdated machinery. (Hi) High Cost—Due to old and outdated machinery the cost of the production of jute articles is increasing day by day. It discourages demand of the jute articles.
(iv) International Competition:
Stiff international competition, especially from Bangladesh in ‘international market is putting a great challenge before Jute industry. Brazil and Philippines are also posing challenges.
(v) Cheaper Synthetic:
Emergence of cheaper synthetic substitution from China in the Indian markets as well in other country’s markets posing a great challenge before Indian jute industries.
Measures to Revive the Jute Industry:
(i) New varieties of production: Introducing various jute products like jute mats, carpets, mixing jute fiber with cotton.
(ii) Encourage awareness among consumers: Developing consumer’s awareness about the qualities of jute products.
(iii) Promote research work: Research and development efforts to promote more efficient techniques.
(iv) Governmental incentives: Incentive provided to cultivators and jute industry by government.