Jute backgrounder: India produced 76 lakh bales of raw jute in 2025-26
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A PIB note of 7 September 2026 says India made 76 lakh bales of raw jute and 12.80 lakh MT of jute goods in FY 2025-26, the largest raw jute output in the world. The MSP for raw jute in 2026-27 is ₹5,925 a quintal, and all food grains must be packed in jute.
- Raw jute (FY 2025-26)
- 76 lakh bales
- Jute goods
- 12.80 lakh MT produced; 94% used at home
- Exports
- jute goods ₹3,155.27 crore; raw jute ₹225.11 crore
- MSP 2026-27
- ₹5,925 per quintal
- Mills
- 120 composite mills, 89 in West Bengal (Dec 2025)
- Livelihoods
- 3.70 lakh workers; nearly 40 lakh farm families
India’s jute sector: what happened?
Jute is called the Golden Fibre for its colour and shine. It is a rainfed crop of eastern India, grown mostly by small farmers. It matters now because it is a biodegradable alternative to plastic.
- India produced 76 lakh bales of raw jute and 12.80 lakh MT of jute goods in FY 2025-26.
- It exported 22,700 MT of raw jute (₹225.11 crore) and 1,71,300 MT of jute goods (₹3,155.27 crore).
- India makes about 75 per cent of the world’s jute goods (as of July 2026).
- Jute and mesta output grew from 88.02 lakh bales in 2024-25 to 94.03 lakh bales in 2025-26 (Third Advance Estimates).
- Jute-viscose apparel designed by NIFT was worn by Indian athletes at the 2026 Commonwealth Games.
How did India’s jute economy take shape?
- Jute use in India goes back to the third century BC; it grew commercially in colonial Bengal.
- At Partition in 1947, nearly 80 per cent of jute-growing area went to East Pakistan, but most mills stayed in India.
- The “Grow More Jute” campaign began in September 1949; output rose from 6.7 lakh tonnes (1951-52) to 14.56 lakh tonnes (1961-62).
- The Jute Packaging Act, 1987 made jute sacks compulsory for essential commodities.
Where and how is jute grown?
- West Bengal grows the most, followed by Bihar, Assam, Odisha and Jharkhand.
- Sown in March-April; harvested in 100 to 110 days.
- Needs hot, humid weather and 700 to 1,500 mm rain in the growing period.
- Mesta is a cheaper bast fibre grown in drier areas; jute and mesta together count as raw jute.
Which constitutional entry covers raw jute?
- Seventh Schedule, List III (Concurrent List), Entry 33: trade and commerce in, and the production, supply and distribution of, … (e) raw jute.
- Under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 100 per cent of food grains and 20 per cent of sugar must be packed in jute.
What support do jute farmers get?
| Measure | Detail |
|---|---|
| MSP 2026-27 | ₹5,925 per quintal; 61.8% over weighted average cost; about 147% above 2014-15 (₹2,400) |
| MSP paid | ₹441 crore (2004-05 to 2013-14); ₹1,342 crore (2014-15 to 2025-26) |
| Jute Corporation of India | sole MSP agency; around 110 purchase centres |
| NJDP | ₹485.58 crore, FY 2021-22 to 2025-26 |
| JUTE-ICARE | since FY 2015-16: seeds, mechanisation, better retting |
| JUTE-SMART | e-portal since November 2016 for jute sacking procurement |
Why does India’s jute sector matter?
| Angle | What to note |
|---|---|
| Environment | Biodegradable fibre that can replace plastic packaging. |
| Rural livelihoods | Nearly 40 lakh farm families and 3.70 lakh workers. |
| Atmanirbhar | Domestic output meets demand; 94 per cent of jute goods used at home. |
| Infrastructure | Jute geotextiles stabilise slopes, roads and riverbanks. |
| Exports | Jute goods exports of ₹3,155.27 crore in FY 2025-26. |
What are the challenges in India’s jute sector?
- Jute is rainfed and grown by small and marginal farmers, so incomes swing with weather.
- The industry is concentrated in West Bengal (89 of 120 mills).
- Market for diversified products is still small compared to sacking.
What should be done next on India’s jute sector?
- Expand jute geotextiles in roads, railways and river protection.
- Push diversified products through the Jute Mark India logo and fairs.
- Use the Jute Crop Information System (BHUVAN JUMP, PATSAN) for crop monitoring.
What can Prelims ask on India’s jute sector?
- India: largest producer of raw jute; about 75 per cent of world jute goods.
- MSP raw jute 2026-27: ₹5,925 per quintal.
- Jute Corporation of India: sole nodal agency for jute MSP.
- JUTE-ICARE: Improved Cultivation and Advanced Retting Exercise (2015-16).
- Raw jute: Concurrent List, Entry 33(e).
How to write about India’s jute sector in Mains
Practice question (15 marks, 250 words): Jute can be both a livelihood support and a green alternative to plastic. Discuss the status of India’s jute sector and the measures to strengthen it.
- Intro: 76 lakh bales, 75 per cent of world jute goods.
- History: Partition shock, Grow More Jute, Jute Packaging Act.
- Support: MSP ₹5,925, JCI, NJDP, JUTE-ICARE, JUTE-SMART.
- Challenges: rainfed crop, mill concentration, small diversified market.
- Way forward: geotextiles, branding, crop information system.
How to use this in Mains
- As per PIB (2026-09-07): india produced 76 lakh bales of raw jute and 12.80 lakh MT of jute goods in FY 2025-26; jute goods exports were worth ₹3,155.27 crore.
- It offers a biodegradable alternative to plastic, which is the use case to remember.
Quotable data pointIndia produced 76 lakh bales of raw jute and 12.80 lakh MT of jute goods in FY 2025-26.
PIB: PIB Backgrounder: Jute, 7 Sep 2026
Exam angle
Prelims: jute-growing conditions.
Practice MCQs
Original practice questions (not PYQs).
Which State has the most composite jute mills (December 2025)?
Answer (c) & explanation
PIB Backgrounder, 7 Sep 2026: 89 of 120.
"Raw jute" appears as a specific item under which list entry?
Answer (c) & explanation
Constitution: List III, Entry 33(e).
JUTE-ICARE mainly aims at
Answer (b) & explanation
PIB Backgrounder, 7 Sep 2026.
Questions students ask about this
How much raw jute did India produce in FY 2025-26?
76 lakh bales, as per the PIB backgrounder.
What is the MSP of raw jute for 2026-27?
₹5,925 per quintal.
Which agency buys jute at MSP?
The Jute Corporation of India, the sole nodal agency for the MSP policy for raw jute.
What must be packed in jute bags?
100 per cent of food grains and 20 per cent of sugar.
Keep studying
Go deeper
Official source: PIB: PIB Backgrounder: Jute, 7 Sep 2026
facts from cited sources only; faculty review pending