Context
Recently, the Cabinet Committee on Economic Affairs (CCEA) approved a significant increase in the Minimum Support Price (MSP) for raw jute for the 2026-27 marketing season. The Jute Corporation of India (JCI) continues to serve as the nodal agency for price support operations, while the National Jute Board (NJB) focuses on market promotion and technological interventions to modernize the sector.
1. About Jute: The “Golden Fiber”
Jute is a natural fiber with a golden and silky shine, making it the second most important vegetable fiber after cotton in terms of usage and production.
- Geographical Conditions:
- Climate: It requires a hot and humid climate with temperatures ranging between 24°C and 35°C.
- Rainfall: Heavy rainfall of 120 cm to 150 cm is essential, with high relative humidity (80-90%).
- Soil: It thrives best in alluvial soil (silt-laden) found in the floodplains of the Ganges-Brahmaputra delta.
- Production Hubs: India is the world’s largest producer. West Bengal is the leading state, followed by Bihar, Assam, and Odisha.
- Environmental Benefits:
- Jute is 100% biodegradable and recyclable.
- A hectare of jute plants consumes about 15 tonnes of CO2 and releases 11 tonnes of Oxygen during a single season.
- The Retting Process: This is a crucial post-harvest step where jute stems are submerged in water to separate the fiber from the woody core. The government is promoting In-situ Tank Retting to save water and improve fiber quality.
2. National Jute Board (NJB)
The National Jute Board is the apex body responsible for the overall development and promotion of the jute industry in India.
- Establishment: It is a statutory body established under the National Jute Board Act, 2008.
- Ministry: It functions under the administrative control of the Ministry of Textiles, Government of India.
- Merger: It was formed by merging the erstwhile Jute Manufactures Development Council (JMDC) and the National Centre for Jute Diversification (NCJD).
- Headquarters: Kolkata, West Bengal.
- Key Functions:
- Market Promotion: Organizing domestic and international fairs to promote Indian jute products.
- Research & Development: Funding R&D projects for product diversification, such as jute geotextiles and agro-textiles.
- Incentive Schemes: Implementing schemes like the Jute Integrated Development Scheme (JIDS) to support MSMEs and artisans.
- Standardization: Working towards improving the quality of jute fiber through better retting technologies (e.g., JUTE-ICARE).
3. Jute Corporation of India (JCI)
While the NJB handles promotion, the JCI is primarily concerned with the commercial and price-stabilization aspects of raw jute.
- Establishment: It was set up in 1971 as a Government of India enterprise.
- Status: It is a Central Public Sector Undertaking (CPSU) under the Ministry of Textiles.
- Primary Objective: To protect the interests of jute growers through Price Support Operations.
- Key Functions:
- MSP Procurement: Acting as the nodal agency to purchase raw jute from farmers at the MSP whenever market prices fall below the threshold.
- Commercial Purchase: Engaging in the commercial purchase of jute to ensure a steady supply to the industry.
- Stabilizing Prices: Managing buffer stocks to prevent extreme price volatility in the market.
- Direct Interaction: Operating through a network of Departmental Purchase Centres (DPCs) to eliminate middlemen.
4. Regulatory and Economic Framework
- Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987: This act mandates the compulsory use of jute packaging for certain commodities. Currently, the government mandates 100% of food grains and 20% of sugar to be packed in diversified jute bags.
MSP Determination: The MSP for raw jute is fixed by the government based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Q. Consider the following statements regarding the Jute sector in India:
Statement-I: The National Jute Board is a statutory body established to handle the procurement of raw jute from farmers at Minimum Support Price (MSP).
Statement-II: The Jute Packaging Materials Act of 1987 mandates the compulsory use of jute for 100% of food grain packaging in India.
Which one of the following is correct in respect of the above statements?
A) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I.
B) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I.
C) Statement-I is correct but Statement-II is incorrect.
D) Statement-I is incorrect but Statement-II is correct.
Solution: D
• Statement-I is INCORRECT: The National Jute Board (NJB) is indeed a statutory body, but its role is the promotion and development of the industry. The procurement of raw jute at MSP is the mandate of the Jute Corporation of India (JCI).
• Statement-II is CORRECT: Under the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987, the government currently mandates 100% of food grains and 20% of sugar to be packed in jute bags to support the industry and farmers.
