The Commission for Agricultural Costs and Prices (CACP) has outlined strategic interventions to revitalize India’s declining jute sector. Key recommendations include expanding cultivation areas, boosting productivity, enhancing procurement systems, and diversifying exports. Despite the development of high-yielding jute varieties, older varieties still dominate due to limited coverage of certified seeds under government programs like JuteICARE. CACP urges the government to develop a strategic plan for large-scale distribution of quality seeds at affordable prices to improve the varietal replacement rate.
Additionally, the CACP highlights discrepancies in jute production estimates between the Agriculture Ministry and the Jute Advisory Board, which impede effective decision-making. An expert committee is recommended to address this inconsistency. To incentivize superior-grade jute production, the CACP suggests adjusting the premium and discount structure relative to the minimum support price (MSP), which has stagnated over the years. The phased reduction of mandatory jute packaging is proposed to ensure raw material availability for diversified goods.
Mechanization in jute farming should be promoted to reduce high labor costs. The limited presence of the Jute Corporation of India in remote areas necessitates an expanded procurement network through collaboration with state bodies and cooperatives. With Indian jute exports facing concentrated market risks and competition from subsidized Bangladeshi goods, diversification of export destinations and monitoring of imports are crucial to safeguarding the industry.