{"id":36042,"date":"2025-01-23T18:19:44","date_gmt":"2025-01-23T12:49:44","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=36042"},"modified":"2025-01-24T10:17:15","modified_gmt":"2025-01-24T04:47:15","slug":"cabinet-announces-6-percent-hike-in-jute-msp","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/23-01-2025\/cabinet-announces-6-percent-hike-in-jute-msp","title":{"rendered":"Cabinet Announces 6% Hike in Jute MSP"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy and Agriculture<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Cabinet approved a minimum support price for <strong>raw jute by 6% for marketing season 2025-26.&nbsp;<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Jute Corporation of India (JCI) will continue as its <strong>nodal agency<\/strong> to undertake price support operations.<\/li>\n\n\n\n<li>The losses incurred, if any, in such operations, will be fully reimbursed by the Union government.<\/li>\n\n\n\n<li><strong>MSP: <\/strong>It is a form of <strong>market intervention<\/strong> by the Government to insure agricultural producers against any sharp fall in farm prices.\n<ul class=\"wp-block-list\">\n<li>The prices are announced by the Government at the <strong>beginning of the sowing season for certain crops <\/strong>on the basis of the recommendations of the <strong>Commission for Agricultural Costs and Prices (CACP).&nbsp;<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Crops Covered under MSP<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Kharif Crops (total 14)<\/strong> like paddy, jowar, bajra, maize, ragi, tur\/arhar, moong, urad, groundnut, soyabean, sunflower, sesamum, niger seed, cotton;<\/li>\n\n\n\n<li><strong>Rabi Crops<\/strong> <strong>(total 06)<\/strong> like wheat, barley, gram, masur\/lentil, rapeseed and mustard,and safflower;<\/li>\n\n\n\n<li><strong>Commercial Crops<\/strong> <strong>(total 02) <\/strong>like jute and copra.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Jute Production In India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is also called the <strong>golden fibre, <\/strong>in view of being a natural, renewable, biodegradable and eco-friendly product.&nbsp;<\/li>\n\n\n\n<li><strong>India <\/strong>is the<strong> largest producer<\/strong> of jute followed by Bangladesh and China.\n<ul class=\"wp-block-list\">\n<li>However, in terms of acreage and trade, Bangladesh takes the lead accounting for three-fourth of the global jute exports in comparison to India\u2019s 7%.<\/li>\n\n\n\n<li>Most of the Jute is consumed domestically due to its vast domestic market demand, with an average domestic consumption of 90% of total production.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The jute sector provides direct employment to <strong>about 4 lakh workers <\/strong>in the country and supports the livelihood of around 40 lakh farm families.<\/li>\n\n\n\n<li><strong>West Bengal, Bihar and Assam<\/strong> account for almost 99% of India\u2019s total production.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"ccccc5\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"418\" height=\"352\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/country-wise-share-of-india-jute-exports-2021-22.webp\" alt=\"country-wise-share-of-india-jute-exports-2021-22\" class=\"not-transparent wp-image-36043\" style=\"--dominant-color: #ccccc5; width:334px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/country-wise-share-of-india-jute-exports-2021-22.webp 418w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/01\/country-wise-share-of-india-jute-exports-2021-22-300x253.webp 300w\" sizes=\"auto, (max-width: 418px) 100vw, 418px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Conditions Required for Jute Production<\/strong><br>&#8211; <strong>Temperature:<\/strong> A mean maximum and minimum temperature of <strong>34\u00b0C and 15\u00b0C<\/strong> and a mean <strong>relative humidity of 65% <\/strong>are required.&nbsp;<br>&#8211; <strong>Rainfall:<\/strong> Around 150-250 cm.<br>&#8211; <strong>Soil:<\/strong> Jute can be raised on all kinds of soils from clay to sandy loam, but loamy <strong>alluvial soils<\/strong> are best suited.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges for Jute Industry in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Competition from Synthetic Fibers: <\/strong>Jute faces stiff competition from synthetic fibers like polypropylene and polyester, which are often considered more versatile and cost-effective.&nbsp;<\/li>\n\n\n\n<li><strong>Lack of Innovation and Product Diversification: <\/strong>The industry is facing challenges in terms of limited product innovation and diversification.&nbsp;<\/li>\n\n\n\n<li><strong>Quality Issues:<\/strong> Under retting, jute bundles are kept under water at a depth of about 30 cm. This process gives the fiber its shine, color, and strength.\n<ul class=\"wp-block-list\">\n<li>It should ideally be done in slow moving, clean water bodies like rivers. But Indian farmers do not have access to such resources.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Problems of Jute mills in India:<\/strong> Jute mills are marred by issues of Machinery modernisation, Mismanagement, Labour shortage, and Unrest and dependence on the government.&nbsp;<\/li>\n\n\n\n<li><strong>Price Fluctuations: <\/strong>Jute prices are volatile, influenced by climate conditions and supply-demand imbalances, which affects the stability of the industry.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Steps for Jute Production<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Continuation of Jute Packaging Material<\/strong> (Compulsory Use in Packing Commodities) Act, <strong>1987.<\/strong>\n<ul class=\"wp-block-list\">\n<li>The Government has kept reservations <strong>100% for food grains<\/strong> and <strong>20% for sugar,<\/strong> to be packed in jute packaging material.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Minimum Support Price (MSP) for Raw Jute.<\/strong><\/li>\n\n\n\n<li>The Government has approved an Umbrella scheme namely <strong>National Jute Development Program (NJDP) <\/strong>for implementation during <strong>2021-22 to 2025-26 <\/strong>for overall development and promotion of the Jute Sector.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>NJDP covers following schemes:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improved Cultivation and Advanced Retting Exercise (Jute ICARE):<\/strong> To &nbsp; introduce a package of scientific methods of jute cultivation and retting exercises.<\/li>\n\n\n\n<li><strong>Jute Resource cum Production Centre (JRCPC): <\/strong>To spread jute diversification programmes by providing training to new artisans.<\/li>\n\n\n\n<li><strong>Jute Raw Material Bank (JRMB): <\/strong>To supply jute raw material to jute artisans, MSMEs for production of JDPs at Mill Gate price.<\/li>\n\n\n\n<li><strong>Jute Design Resource Centre (JDRC):<\/strong> For designing and development of market worthy innovative jute diversified products and helping existing and new JDP manufacturers and exporters.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme:<\/strong> To support Jute Mills and MSME JDP units for manufacturing and exporting JDPs and making them cost competitive in the international markets.&nbsp;<\/li>\n\n\n\n<li><strong>Market Development Promotion activities (Domestic &amp; Exports):<\/strong> Development&nbsp; of&nbsp; Jute&nbsp; Mark&nbsp; Logo&nbsp; for Certification&nbsp; of&nbsp; Quality&nbsp; Jute&nbsp; Diversified&nbsp; products and Launching publicity&nbsp; campaign&nbsp; to&nbsp; popularize&nbsp; jute.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Jute Corporation of India Limited (JCI)<\/strong><br>&#8211; <strong>JCI<\/strong> was incorporated by the Government Of India in <strong>1971<\/strong> as a price support agency with the mandate for the procurement of raw jute from the growers at the <strong>minimum Support price (MSP).<\/strong><br>&#8211; <strong>The objective<\/strong> is not profit making but a social cause to protect the interest of about 4.00 million families engaged in farming of jute.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/govt-raises-raw-jute-msp-by-6-9794141\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet approved a minimum support price for raw jute by 6% for marketing season 2025-26.\u00a0<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36042","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=36042"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36042\/revisions"}],"predecessor-version":[{"id":36060,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/36042\/revisions\/36060"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=36042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=36042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=36042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}