UPSC MainsECONOMICS-PAPER-II201220 Marks250 Words
Q8.

How was the Jute industry affected after partition ? What remedial measures were taken to arrest its decline ?

How to Approach

This question requires a nuanced understanding of the impact of Partition on the jute industry, a sector heavily concentrated in Bengal. The answer should begin by outlining the pre-Partition scenario, then detail the specific disruptions caused by Partition, and finally, discuss the remedial measures undertaken. Structure the answer chronologically, focusing on the immediate aftermath and subsequent long-term strategies. Include relevant data and government initiatives. A balanced approach acknowledging both the challenges and responses is crucial.

Model Answer

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Introduction

The jute industry, historically a cornerstone of the Indian economy, particularly in Bengal, faced a severe crisis following the Partition of India in 1947. Prior to Partition, Bengal accounted for approximately 90% of India’s jute production and 75% of its jute manufacturing. The sudden division of the region, creating East Pakistan (later Bangladesh), fundamentally altered the industry’s landscape, disrupting supply chains, creating logistical nightmares, and leading to significant economic losses. This answer will explore the specific impacts of Partition on the jute industry and the remedial measures implemented to mitigate its decline.

Impact of Partition on the Jute Industry

The Partition of 1947 had a multifaceted impact on the jute industry:

  • Disruption of Raw Material Supply: The most significant impact was the loss of access to a substantial portion of the raw jute growing areas, which now fell within East Pakistan. This created an immediate shortage of raw material for Indian jute mills.
  • Migration and Labour Shortages: Partition triggered massive migration, leading to a significant outflow of skilled and unskilled labour from West Bengal. This created acute labour shortages in jute mills, hindering production.
  • Logistical Challenges: Transportation of raw jute from East Pakistan became extremely difficult due to political tensions, border restrictions, and inadequate infrastructure.
  • Increased Costs: The cost of raw jute soared due to scarcity and transportation difficulties, increasing the production costs for Indian jute mills.
  • Loss of Markets: The creation of East Pakistan also meant the loss of a significant market for Indian jute products.

Remedial Measures Taken

The Indian government implemented a series of measures to address the crisis in the jute industry:

Phase 1: Immediate Post-Partition Measures (1947-1950s)

  • Import of Jute: Initially, India resorted to importing jute from countries like Burma and Indonesia to meet the raw material shortage. However, this proved to be an expensive and unreliable solution.
  • Jute Procurement and Distribution Scheme (1948): The government introduced a scheme to procure jute from available sources and distribute it equitably among the mills. This aimed to prevent hoarding and ensure a steady supply.
  • Financial Assistance: Financial assistance was provided to jute mills to help them overcome the initial difficulties. This included loans and subsidies.

Phase 2: Long-Term Strategies (1950s-1970s)

  • Expansion of Jute Cultivation in India: Efforts were made to expand jute cultivation in areas within India, such as Bihar and Uttar Pradesh, to reduce dependence on East Pakistan. However, the quality of jute grown in these areas was often inferior.
  • Modernization of Jute Mills: The government encouraged the modernization of jute mills to improve efficiency and reduce production costs.
  • Diversification of Jute Products: Emphasis was placed on diversifying jute products to explore new markets and applications. This included the development of jute-based textiles, packaging materials, and other products.
  • Establishment of the Jute Board (1963): The Jute Board was established to promote the development of the jute industry, conduct research, and provide technical assistance.

Phase 3: Post-Independence Initiatives (1980s-Present)

Later initiatives focused on sustainability and market development:

  • Jute Packaging Materials Act (JPMA) 1987: This act mandated the use of jute packaging for certain commodities, providing a guaranteed market for jute products. (Amended in 2010)
  • Technology Upgradation Fund Scheme (TUFS): Provided financial assistance for technology upgradation in the jute industry.
  • National Jute Development Programme (NJDP): Focused on improving jute cultivation, processing, and marketing.
Period Key Measures Challenges
1947-1950s Import, Procurement Scheme, Financial Assistance High import costs, Limited domestic cultivation
1950s-1970s Expansion of Cultivation, Modernization, Diversification, Jute Board Inferior quality of domestically grown jute, Slow modernization
1980s-Present JPMA, TUFS, NJDP Competition from synthetic materials, Fluctuating jute prices

Conclusion

The Partition of India dealt a severe blow to the jute industry, disrupting its supply chains and creating significant economic challenges. While the Indian government implemented a range of remedial measures, from immediate import strategies to long-term cultivation expansion and technological upgrades, the industry continued to face difficulties. The JPMA Act provided a crucial lifeline, but the industry remains vulnerable to competition from synthetic materials and fluctuating global prices. Sustained investment in research and development, coupled with a focus on sustainable practices, is essential for the long-term viability of the Indian jute industry.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Jute Procurement and Distribution Scheme
A government initiative implemented in 1948 to procure available jute supplies and distribute them equitably among jute mills to prevent hoarding and ensure a steady supply of raw material.
JPMA
Jute Packaging Materials Act, 1987, mandates the use of jute for packaging of certain commodities to support the jute industry.

Key Statistics

Prior to Partition, Bengal accounted for approximately 90% of India’s jute production.

Source: Report on the Jute Industry, Government of India (Knowledge cutoff 2023)

In 2022-23, India produced approximately 1.2 million tonnes of jute.

Source: National Jute Board (Knowledge cutoff 2023)

Examples

The impact on Fort William

Fort William, a major jute mill in Kolkata, experienced significant labour shortages and production disruptions immediately after Partition, highlighting the widespread impact on the industry.

Frequently Asked Questions

Why was the jute industry so concentrated in Bengal?

Bengal possessed ideal climatic conditions (high rainfall, warm temperatures) and fertile alluvial soil suitable for jute cultivation. Additionally, the proximity to waterways facilitated transportation and trade.

Topics Covered

EconomyHistoryIndian EconomyIndustrial EconomicsPartitionEconomic Policy