Cabinet Announced 6% Hike in Jute MSP to Revive Production

Jute mills foresee 30-50pc production cuts on low procurement plan for jute packaging. Learn about the cultivation, harvesting, and processing of the jute and its production process.

Context: The Cabinet Committee on Economic Affairs (CCEA) has fixed the minimum support price (MSP) of raw jute for the 2025-26 marketing season at ₹5,650 a quintal, an increase of ₹315 from last year.

About Jute and its Production

Jute is a natural fibre with a golden, soft, long, and silky shine.
It is known as Golden Fibre because of its colours and high cash value.
- The Golden Fibre Revolution in India is related to jute production.
To promote the jute industry, the government has mandated 100 % food grains and 20 % sugar to be packed in jute bags.

Conditions Required

Grows best in a hot and humid climate

Temperature: 25-35°C
Rainfall: 150-250 cm
Soil Type: Well-drained alluvial soil

Production in India

Primarily concentrated in 3 states – West Bengal, Bihar & Assam. They produce around 99% of India’s jute.
Other states: Odisha, Andhra Pradesh, Tripura, Meghalaya, Nagaland.
Worldwide: India is the largest producer of jute followed by Bangladesh and China.

National Jute Board (NJB)

It was established in 2008 under the National Jute Board Act, 2008. (HQ- Kolkata, West Bengal)
Nodal Ministry: Ministry of Textiles.
Objective: To promote the development of the jute sector by supporting modernization, productivity enhancement, and domestic as well as international marketing of jute products.

UPSC PYQ

Q. The crop is subtropical. A hard frost is injurious to it. It requires at least 210 frost-free days and 50 to 100 centimetres of rainfall for its growth. A light well-drained soil capable of retaining moisture is ideally suited for the cultivation of the crop.

Which one of the following is that crop? (2020)

(a) Cotton

(b) Jute

(d) Tea

Answer: A