Manufacturing of jaggery (gur), a crucial cottage industry in rural Uttar Pradesh, sustains the livelihoods of over 2.5 million people and accounts for a sizable portion of India's 70% global jaggery production. Manufacturers encounter a variety of difficulties despite their economic significance, such as inefficient technology, chemical contamination, poor infrastructure, and problems with environmental sustainability. In order to identify and assess these issues, this study uses a doctrinal research methodology, examining secondary data from corporate sources, scholarly publications, and government papers. Key findings show that chemical adulteration reduces urban demand by 15%, traditional furnaces result in 30% efficiency losses, and inadequate rural infrastructure raises logistics costs by 20%. A SWOT analysis identifies weaknesses like restricted access to contemporary packaging and strengths like cheap capital requirements. To improve competitiveness and sustainability, recommendations include investing in rural infrastructure, enforcing FSSAI regulations, and financing energy-efficient technologies. In order to turn this old business into a resilient and dynamic one, this article emphasizes the necessity of legislative interventions.