Following are the challenges faced by Jute industries in India :
(i) Prices of jute textiles are so low that industrialists hesitate to set up these industries.
(ii) The international demand for jute goods is falling sharply which is not an encouragement for these industries.
(iii) Many countries now prefer substitutes for jute like plastic or synthetic fibres which reduces its demand.
(iv) Our jute industries face hard competition from Brazil, Thailand, Bangladesh and Egypt whose production cost of jute textile is much lower than in India.
(v) As jute exhausts soil fertility very fast and also because of its low profits, farmers now prefer to cultivate alternative crops like Rice.
The government has taken the following steps to boost Jute production:
(i) The government has made it compulsory in the country to use jute packaging.
(ii) In 2005, our government formulated the National Jute policy with the following aims :
(a) To expand production (b) To enhance quality (c) To provide good prices to the farmers (d) To enhance yield per hectare.
(iii) With the increased awareness about environmental degradation, many state governments have also banned the use of plastic bags and recommended jute or Paper bags.
