Economy

Jute: India's Golden Fibre

GS3 AgriculturePrelims and Mains

In the news since 7 September 2026

Why in news
On 7 September 2026, PIB published a explainer on India's jute sector. It gives FY 2025-26 output and export figures, the MSP for FY 2026-27 and an overview of schemes and digital tools.
What it is
Jute is a bast fibre crop called the Golden Fibre for its colour and lustre. It is grown mainly in eastern India by small farmers, and processed in mills concentrated in West Bengal. The sector is supported by MSP, compulsory jute packaging rules and the National Jute Board.
Jute Corporation of India
JCI is the sole nodal agency for implementing the MSP policy for raw jute. It buys from farmers when market prices fall below MSP.
National Jute Development Programme
NJDP is the umbrella scheme, run by the National Jute Board, with an outlay of ₹485.58 crore for FY 2021-22 to 2025-26. Its components are JUTE-ICARE and the Jute Diversification Scheme.
Mills and states
India has 120 composite jute mills, and West Bengal has 89 of them, the most of any state.
JUTE-ICARE
Launched in FY 2015-16 to raise productivity and fibre quality through better seeds, mechanisation and improved retting.

Don’t confuse with Jute Corporation of India vs National Jute Board: JCI procures raw jute at MSP. The National Jute Board is the nodal body for development, promotion and diversification of the sector.

Don’t confuse with Jute vs mesta: Mesta is a bast fibre grown as a cheaper alternative in drier regions. Trade classifies both together as raw jute.

Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.

No practice question for this one; the card may still help an answer. Why: Standing explainer on jute sector, production and policy; mostly data, so no question.

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 7 September 2026

    On 7 September 2026, PIB published a explainer on India's jute sector. It gives FY 2025-26 output and export figures, the MSP for FY 2026-27 and an overview of schemes and digital tools.