India is the largest producer of raw jute and jute goods. India holds the second place as an exporter after Bangladesh. There are about 70 jute mills in India. Most of these are located in West Bengal, mainly along the banks of the river Hugli.The first jute mill was set up near Kolkata in West Bengal . After Partition in 1947, the jute mills remained in India but three-fourth of the jute producing area went to Bangladesh.Factors Responsible for Localization of Jute industry is Hugli Basin proximity of the jute producing areas inexpensive water transport supported by a good network of railways roadways and waterways to facilitate movement of raw material to the mills abundant water for processing raw jute Cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.
Factors Responsible for Localization of Jute industry is Hugli Basin proximity of the jute producing areas inexpensive water transport supported by a good network of railways roadways and waterways to facilitate movement of raw material to the mills abundant water for processing raw jute Cheap labour from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.Kolkata as a large urban centre provides banking, insurance and port facilities for export of jute goods.
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1) proximity of jute producing areas.
2) in expensive water transportation
3) abundant water for processing jute.
4) cheap labour is available for jute industry.
5) supported by a good network of railways waterways Roadways to facilitate the movement of raw material to the mills.
6) Kolkata as a large urban centre provides banking insurance and port facilitate for the export of jute goods.
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Challenges
Wage rates need to be linked with productivity, new sophisticated machinery needed, but labour unions resistant.businessmen were not doing new investment.After partition, mills remained in India, jute producing areas went to East Pakistan (Bangladesh ). So Bangladeshis are now using more modern machineries than while weтАЩre still using outdated technology. Hence Bangladeshi jute products are better and cheaper than ours in International market.Competition from synthetic packaging material.L┬нack of marketing strategy to promote Indian jute as eco-friendly, biodegradable packing material among environmentally conscious customers in US and Europe.