Struggling against Dundee: Bengal jute industry during the nineteenth century

Abstract

This article seeks to situate Bengal’s jute industry during the nineteenth century in a global perspective. It was a long-established cottage industry in Bengal that entered into the global market before the advent of jute technologies at Dundee, and grew together with the Dundee mills through the mid-nineteenth century. The subsequent emergence of modern mills in Bengal further aggravated the market competition. In view of inadequate deliberations in the existing literature, we intend to investigate four important questions on the contemporary jute industry: (a) what was the development status of the traditional jute industry in Bengal around the mid-nineteenth century?; (b) when did it enter into the phase of decline?; (c) what were the sources of comparative advantages between the Dundee and Calcutta mills?; and (d) what were the nature and consequences of competition between them? These issues are discussed, and also quantified, wherever possible, on the basis of contemporary data and information. The welfare implications of Bengal jute industry are also evaluated.