Syllabus: GS– III & V: Agriculture

Why in the news?

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has increased the Minimum Support Price (MSP) of raw jute to ₹5,925 per quintal for the 2026–27 marketing season, an increase of ₹275 over the previous year. This brings renewed focus on Assam, the second-largest jute-producing state after West Bengal.

The Golden Fibre and Assam’s Opportunity

Jute, known as the “golden fibre”, is a biodegradable and eco-friendly crop. Assam has favourable agro-climatic conditions, but its productivity remains below the national average. Improving quality and yield is essential for farmers to benefit fully from higher MSP.

• The Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987 mandates compulsory use of jute bags for food grain packaging.
• Nearly 80 per cent of jute production depends on government procurement of jute bags.
• The Prime Minister Garib Kalyan Anna Yojana, distributing free rice to over 80 crore beneficiaries, is a major driver of demand for jute bags.

This heavy dependence makes diversification urgent. If government food grain procurement reduces, demand for jute bags may fall.

Key Government Schemes Supporting Jute

• National Jute Development Programme (NJDP): Promotes diversification and market development.
• Jute Diversification Scheme: Encourages production of eco-friendly bags, home décor and textiles.
• Jute Improved Cultivation and Advanced Retting Exercise (Jute-ICARE): Promotes mechanisation and scientific farming.
• Capital Subsidy for Acquisition of Plant and Machinery Scheme: Supports modernisation of jute mills.
• Jute Raw Material Bank Scheme: Ensures steady supply of raw jute to mills.

Why Quality Fibre Matters

Traditional jute farming in Assam suffers from:

• Non-scientific sowing practices.
• Poor retting (process of separating fibre from stem).
• Lack of certified seeds.

Under Jute-ICARE, the use of seed drills for line sowing, improved weeding, and certified seeds can:

• Increase yield by 10–15 per cent.
• Reduce production cost by ₹8,000–₹10,000 per hectare.
• Improve fibre quality for diversified markets.

High-quality fibre is crucial for expanding into textiles, eco-friendly packaging, handicrafts, and export markets, especially through Micro, Small and Medium Enterprises.

The Way Forward

• Assam must scale up mechanised farming among small and marginal farmers.
• Investment in retting ponds and irrigation is essential.
• Strengthening MSMEs will reduce dependence on food grain packaging.
• Climate-resilient seeds are necessary to tackle erratic rainfall patterns.

A strong jute economy will boost rural incomes, promote sustainable agriculture, and support India’s environmental goals.

Exam Hook

Key Takeaways:

• MSP increase alone is not enough; quality fibre and diversification are crucial.
• The jute sector is closely linked to food security schemes.
• Mechanisation and modern agronomy improve both yield and income.

Mains Question:
“Discuss the role of Minimum Support Price and diversification strategies in ensuring the long-term sustainability of Assam’s jute economy.”

One-line wrap:
For Assam, the future of the golden fibre lies not just in higher prices, but in producing better quality jute for a diversified and resilient market.

Source