The main reasons for concentration of jute industries in WB are:
- Favourable condition for Jute production: Ample amount of water, high humidity and warm and wet climate.
- Secondly cheap labour is also available from Bihar, West Bengal, Odisha etc
- Hubly river also provide import and export of jute.
Problem faced by Jute industry:
- Shortage of raw material: As production and productivity has not been increased since partition. Most of the Jute producing area now lies with Bangladesh.
- Lack of capital for the Industry.
- Obsolete mills and machinery
- Competition : Tough competition being faced by Bangladesh, Phillipines, South Korea, Japan etc.
- Decrease in the demand due to the availability of synthetic alternative
- Frequent strike and lockouts
