India has raised the minimum support price (MSP) for jute by over 26% in the last five years; however, this increase has not resulted in a corresponding rise in jute cultivation among farmers. In the current 2024–25 season, jute production has fallen to 84.33 lakh bales (each weighing 180 kg), down from 92.52 lakh bales in the previous year.
The Indian Ministry of Agriculture reports that the MSP for jute was ₹4,225 (~$49.34) per quintal in 2020–21. This figure rose to ₹4,500 in 2021–22, ₹4,750 in 2022–23, and ₹5,050 in the 2023–24 season. The MSP, which acts as a safeguard for farmers against market volatility, saw a 19.52% increase over the four years leading to 2023–24, with a further rise to ₹5,335 per quintal for the ongoing 2024–25 marketing year—representing a 26.25% hike from the previous year. For the upcoming 2025–26 marketing year, the MSP has been increased again to ₹5,650 per quintal.
Despite these MSP increases, jute production has not exhibited consistent growth in recent years. India recorded a peak production of 106.18 lakh bales in 2014–15, a benchmark that has not been achieved since. Production figures showed fluctuations, with 89.53 lakh bales in 2020–21, an increase to 97.62 lakh bales in 2021–22, followed by a drop to 89.89 lakh bales in 2022–23. This was followed by a rise to 92.52 lakh bales in 2023–24, but production has again declined to 84.33 lakh bales in 2024–25.
Similarly, the production of mesta, another fiber crop, has experienced notable volatility in recent years. Its output was recorded at 4.02 lakh bales in 2020–21, decreasing to 3.87 lakh bales in 2021–22, then rising to 4.03 lakh bales in 2022–23, increasing further to 4.41 lakh bales in 2023–24, only to fall to 3.15 lakh bales in 2024–25. The third advance estimate of agricultural production for 2024–25 has recently been released.
