Question

Read the given case and answer the questions that follow:

Challenges faced by the Jute industry include stiff competition in the international market from synthetic substitutes and from other competitors like Bangladesh, Brazil, Philippines, Egypt and Thailand. However, the internal demand has been on the increase due to the Government policy of mandatory use of jute packaging. To stimulate demand, the products need to be diversified. In 2005, National Jute Policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers and enhancing the yield per hectare. The main markets are US.A., Canada, Russia, United Arab Republic, U.K. and Australia. The growing global concern for environment friendly, biodegradable materials, has once again opened the opportunity for jute products.

1. Mention any two challenges faced by jute industry in India.
2. What was the main objective of National Jute Policy formulated in 2005?
3. How has jute industry once again opened the new opportunities for its products?

Answer 1

1. The 'Jute Industry' in India is facing two challenges:
   
   1. Stiff competition in the International Market from synthetic substitute and
   2. From other competitors like Bangladesh, Brazil, Phillippines, Egypt and Thailand.
2. In 2005, National Jute Policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers and enhancing the yield per hectare.
3. 
   
   1. The growing global concern for environment friendly, biodegradable materials, has once again opened the opportunity for jute products.
   2. The internal demand has been on the increase due to the Government policy of mandatory use of jute packaging.