India's Jute Industry Performance and Government Support
India maintains its position as the world's largest producer of raw jute and jute goods, accounting for approximately 75% of global production as of July 2026. In FY 2025-26, the country produced 76 lakh bales of raw jute and 12.80 lakh MT of jute goods, demonstrating significant production capacity. The industry provides direct employment to approximately 3.70 lakh workers in organized mills and diversified jute units while sustaining the livelihoods of nearly 40 lakh farm families engaged in jute cultivation.
Production and Export Statistics
India achieved complete self-sufficiency in jute goods production with domestic consumption reaching 12.05 lakh MT, representing 94% of total production. Export performance remained strong with 1,71,300 MT of jute goods valued at ₹3,155.27 crore and 22,700 MT of raw jute worth ₹225.11 crore exported in FY 2025-26. West Bengal dominates the industry with 89 out of India's 120 composite jute mills as of December 2025.
Government Policy Interventions
The government has implemented substantial support measures including fixing the Minimum Support Price (MSP) for raw jute at ₹5,925 per quintal for FY 2026-27, ensuring a 61.8% return over the all-India weighted average cost of production. This represents a 147% increase from the FY 2014-15 MSP of ₹2,400 per quintal. MSP payments to jute farmers increased from ₹441 crores during FY 2004-05 to FY 2013-14 to ₹1,342 crores from FY 2014-15 to FY 2025-26.
The Jute Packaging Materials (Compulsory Use in Packing Commodities) Act mandates 100% packaging of food grains and 20% of sugar in jute bags, ensuring stable market demand. The National Jute Development Programme operates with an outlay of ₹485.58 crore from FY 2021–22 to FY 2025–26, focusing on enhancing farm productivity and diversification through JUTE-ICARE and Jute Diversification schemes.
Technological and Digital Initiatives
The JUTE-SMART e-governance portal has facilitated procurement of 303 lakh bales of B.Twill Jute Bags worth approximately ₹1,00,000 crores by more than 20 State Procurement Agencies including Punjab, Haryana, Odisha, Telangana, West Bengal, Bihar, Andhra Pradesh and FCI since its implementation in November 2016. The system was upgraded in 2026 to digitize various supply chain processes and onboard stakeholders including transporters, raw jute traders, and importers.
The Indian Space Research Organization (ISRO) developed the Jute Crop Information System through the National Remote Sensing Centre (NRSC) in collaboration with Jute Corporation of India and National Jute Board. This includes the BHUVAN JUMP mobile app for on-field jute monitoring and PATSAN web-based platform for near-real-time jute surveillance and analytics.
Diversification and Market Development
The jute sector has expanded beyond traditional applications with innovations including jute-viscose-blended apparel worn by the Indian contingent at the 2026 Commonwealth Games, developed by the National Jute Board and designed by NIFT New Delhi. Jute Geotextile (JGT) has gained recognition for civil engineering, soil conservation, and infrastructure development applications due to its biodegradability and functional effectiveness.
The government organized over 57 regional jute fairs across major cities in FY 2025-26, including India International Trade Fair, Surajkund Mela, and Bharat Tex. Support schemes include Capital Subsidy for Acquisition of Plant & Machinery (30% subsidy), Jute Resource-cum-Production Centres, Jute Retail Outlets (25% sales assistance up to ₹9 lakh per unit), and Production Linked Incentive for JDP Exports.