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Swot Analysis of the Indian Cotton, Jute, Sugar

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Submitted By EconJabberwocky
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JUTE INDUSTRY

STRENGTHS:
1. Jute is a labour intensive industry, which engages 4.35 million people.
2. Jute industry has lot of potential of providing employment especially in East Indian region. Jute is an eco-friendly and biodegradable product. With the pressure from green movement, it is going to sustain through consumer's preference.
3. The industry has potential in domestic as well as international markets.
4. It provides wide variety in each product and exhibit diversified culture of India.
5. Industry caters to the different market sectors covering handicrafts, textiles and jewelleries.
6. It requires low capital investment
7. It is a great source of foreign revenue as it is a huge export industry

WEAKNESSES:
1. Frequent revision of PJMA guidelines (to add or dilute items for jute packing) leaves the industry in confusion whether to invest further on the Jute technology development/product development / market expansion or wait for new policies etc.
2. Though jute industry is a labour intensive, wages represent 35 per cent of total conversion cost of jute Industry, which evades the profit margins.
3. Multi unionism is one of the major problems faced by jute industry and engages major concentration of routine management in resolving labour dispute.
4. The machinery used in jute industry is old and obsolete with age of machinery ranging between 40 - 150 years. They have lost their capacity to produce quality products and in spite of routine maintenance, fail to yield standard machine production.
5. Another weakness of jute industry is poor Research & Development (R&D) initiation, invention/reverse engineering effort has been grossly neglected in this sector. The reasons for this are lack of farsightedness & forward planning on the part of government and industry.
6. Marketing has been another weak point of jute industry. It has been

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