Q1. [1] medium initial-understanding
Which of the following best explains why jute growers in Bengal were among the worst-hit groups during the Great Depression?
(A) They shifted to growing food crops, reducing their income.
(B) Jute was mainly sold in domestic markets that collapsed suddenly.
(C) The global demand for jute packaging fell sharply as world trade contracted, crashing jute prices.
(D) The British government imposed heavy export taxes on jute during the Depression.
- A The colonial government heavily taxed jute exports, leaving growers with very little income.
- B The collapse of gunny export markets caused raw jute prices to crash, while revenue demands remained unchanged, pushing growers into deep debt.
- C Jute cultivation was banned in Bengal, forcing farmers to switch to less profitable crops.
- D Falling wheat prices made it impossible for jute growers to afford food, even though jute itself sold well.
Generated by claude-sonnet-4-6 · 2026-06-26 13:40 · grounding rag
Model Answer
Option B — The collapse of gunny export markets caused raw jute prices to crash (by over 60%), while revenue demands remained unchanged, pushing growers into deep debt.
Explanation
The textbook (Section 3.5) explicitly states that as gunny exports collapsed, raw jute prices crashed more than 60%, yet the colonial government refused to reduce revenue demands. Option B directly reflects this. The question's correct answer (C) addresses why globally, but among the given options A–D, Option B matches the textbook's specific explanation for Bengal jute growers' distress.