India's jute output slips to 84 lakh bales in 2024-25 despite high MSP

According to the Indian Ministry of Agriculture, the MSP for jute was ₹4,225 (~$49.34) per quintal in 2020–21, which increased to ₹4,500 in 2021–22, ₹4,750 in 2022–23, and ₹5,050 in 2023–24. MSP is the price at which the government procures jute from farmers to protect them from unpredictable market fluctuations. The MSP rose by 19.52 per cent over the four years leading up to 2023–24 and was further increased to ₹5,335 per quintal for the current marketing year 2024–25. Thus, the MSP was hiked by 26.25 per cent over the past year. The government has further increased the MSP to ₹5,650 per quintal for the upcoming 2025–26 marketing year.

However, jute production has not seen steady growth in recent years. India had achieved an excellent production of 106.18 lakh bales in 2014–15, a level that has not been reached since. In 2020–21, production stood at 89.53 lakh bales, rising to 97.62 lakh bales in 2021–22. It then dropped to 89.89 lakh bales in 2022–23, increased again to 92.52 lakh bales in 2023–24, but declined once more to 84.33 lakh bales in 2024–25.

Like jute, the production of mesta, another fibre crop, also showed volatility in recent years. Its output was 4.02 lakh bales in 2020–21, 3.87 lakh bales in 2021–22, 4.03 lakh bales in 2022–23, 4.41 lakh bales in 2023–24, and 3.15 lakh bales in 2024–25. The third advance estimate of agricultural production for 2024–25 was released recently.

Fibre2Fashion News Desk (KUL)