If jute industry has to be set up which would be a better location- Damodar basin or Hugli basin? Give five reasons to support your answer.

Jute is also known as the golden fibre. India is the largest producer of raw jute and jute goods and the second largest exporter of jute. West Bengal, Bihar, Assam, Odisha, and Meghalaya are the major jute producing states. Most of the jute producing centres are located in West Bengal, mainly along the Hugli River. Factors responsible for their location in the Hugli basin are:

• Proximity to production centres- Hugli basin is the most fertile basin for the production of jute. The jute production in Hugli occurs in a belt that is 98 km long and 3 km wide. This provides more access to for the manufacturers and the sellers of raw jute from the main production areas.

• Transportation- The area is highly connected with all forms of transportation. It has an inexpensive water transport network, reinforced by a good network of railways, roadways, and waterways. This helps in the easy and cheap movement of raw material to the mills.

• Availability of resources- Jute is grown on well-drained fertile soils in the floodplains where soils are renewed every year. The high temperature is also another required factor. Abundant water is also required for processing raw jute. All these factors can be obtained easily in the Hugli basin.

• Labour- Labour is another factor that has to be considered while establishing industries. Cheap labour can be obtained from West Bengal and adjoining states of Bihar, Orissa and Uttar Pradesh.

• Allied services- Kolkata provides adequate banking, insurance and port facilities for the export and production of jute goods. Many people are associated with the industry directly and indirectly.

But the industry is facing a lot of challenges the stiff competition in the international market from synthetic substitutes. It should also compete with other producers like Bangladesh, Brazil, Philippines, Egypt and Thailand. The growing global concern for eco-friendly, biodegradable materials has once again opened the opportunity for jute products and has given the industry a new vigour.