Answer: India is the world’s biggest producer of jute, followed by Bangladesh. Jute is primarily grown in West Bengal, Odisha, Assam, Meghalaya, Tripura, and Andhra Pradesh. Factors responsible for the location of the jute industry in India:

• Raw material: These industries are located in close proximity to the jute-producing areas. For instance, in West Bengal, the jute mills are located along the banks of the Hugli River.
• Means of transportation: Inexpensive water transport, supported by a good network of railways, roadways, and waterways facilitate the movement of raw materials to the mills.
• Water requirement: The availability of abundant water facilitates the processing of raw jute. For example, the Hugli River supplies the adequate water for jute mills in West Bengal.
• Labor: Cheap labor from West Bengal and adjoining states of Bihar, Odisha, and Uttar Pradesh make this region attractive for industries.
• Other factors: A large urban center providing banking, insurance, and port facilities for the export of jute goods, for example, Kolkata.

Challenges faced by the industry:

• Fragmentation: The Indian Jute industry is highly fragmented and is dominated by the unorganized sector and small and medium industries.
• Increasing input costs: Unpredictable market conditions, weather, policies, etc. have resulted in a supply shortage of raw materials and an increase in material costs.
• Highly competitive export market: In the global market, tariff and non-tariff barriers coupled with a lack of free/preferential trade agreements are posing a major challenge to these Industries.

• For instance, there is stiff competition in the international market from synthetic substitutes and from other competitors like Bangladesh, Brazil, Philippines, Egypt, and Thailand.

• Other issues:

• Poor access to the latest technology and low automation.
• Social issues like child labor and personal safety norms.

It must be noted that the growing global concern for environment-friendly, biodegradable materials, has once again opened the opportunity for jute products. In order to give an impetus to the jute industry, the government has approved that 100% of the food grains and 20% of the sugar shall be mandatorily packed in jute bags.