Discuss the challenges faced by jute industry in India. What are the steps taken by the government to address these challenges?

Jute is a biodegradable natural fibre that is used for variety of purpose like making ropes, gunny bags for packaging, etc.

Challenges faced by Jute industry:

• The small size of Jute making firms.
• The use of obsolete machinery and technology.
• Inadequate connection with the high value markets of the world like the USA, European Union, etc.
• Challenges and competition from Jute industry of Bangladesh.
• Competition from synthetic fibres.
• Inadequate branding and marketing of Jute.

Steps taken by government:

• A national jute policy has been put in place.
• A board to promote jute cultivation and use, has been set up.
• MSP is announced for jute to incentivize jute cultivation.
• Mandatory jute packaging for certain percentage of sugar in sugar mills.
• Mandatory jute packaging for storage of grains in FCI godowns.
• Branding and promoting jute in international markets.

These steps will ensure that jute production stays at healthy level.  With rising consciousness of biodegradable fibres, Jute can well become the golden fibre.

Topics: GS-III: Major Crops Cropping Patterns in Various Parts of India • GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues • GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices