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India is the largest producer and second largest exporter of jute goods in the world, contributing about 35 per cent of the total output of the world. It is a labour intensive industry which directly and indirectly provides job to more than 4 lakh people. The industry is, however, facing a tough competition from synthetics and its export market is shrinking.
The first jute factory in India was established at Rishira, about 20 km north of Calcutta in 1854. The industry made tremendous progress in the later part of the 19th century. Subsequently, the industry was boosted by the two world wars. The industry suffered a serious setback in 1947 due to the partition of the subcontinent. After partition about 80 per cent of the jute growing areas went to East Pakistan (Bangladesh), while nearly 90 per cent jute mills remained in India. In 1959, the international demand of jute products decreased substantially as a result of which 112 jute factories were closed dow n. At present there are only 79 jute producing mills in India. Most of these mills are along the Hugli river, especially to the north of Kolkata. Out of total 79 jute mills, 62 are located in West Bengal, 3 each in Bihar and U.P., seven in Andhra Pradesh and one each in Assam, Odisha, Tripura and Chhattisgarh.
The jute mills are integrated units consisting of both spinning and weaving units. The main products of jute industry are gunny bags, canvas, pack-sheets, cotton-jute, paper-lined Hessians, Hessian cloth, carpets, carpet-backings, rugs, cordage, and twines.
Jute industry is mainly a raw material based industry. Most of the jute mills are in the jute producing areas of the country. West Bengal alone accounts for 85 per cent of the total jute production of the country (Fig. 11.1 and Fig. 11.4). The high concentration of Jute mills in West Bengal (Fig. 11.5) is because of the following factors:
1. Availability of raw material; Jute cultivation needs highly productive, well-drained soils and hot and humid climate. These conditions are ideally available in many tracts of West Bengal and Lower Assam.
2. Cheap and skilled labour is available in West Bengal, one of the most densely populated state of the country.
3. Cheap water transport through the Hugli river.
4. Availability of coal from the Raniganj coal-mines.
5. Export facility through the port of Kolkata and Haldia.
In addition to West Bengal, jute mills are also located in Eluru, Guntur, Ongole and Vishakhapatnam (Andhra Pradesh); Darbhanga, Gaya, Katihar and Samastipur (Bihar); Kanpur (Uttar Pradesh); and Raigarh (Chhattisgarh). The jute mills outside the Hugli belt are generally smaller in size. The total production
from these 25 mills is only about 3 per cent of the total production of jute goods.
Jute industry in India is essentially export-oriented. India stands second after Bangladesh in the export of jute and jute products. Jute goods are exported to USA (30 per cent), Russia (25 per cent), UAE ((10 per cent), and UK, and Germany (2 per cent each). Among the other importers of Indian jute goods, Argentina, Australia, CIS, Cuba, Indonesia,Japan, Myanmar, Malaysia, Singapore, Sudan, and Thailand are important.