Archive · 29 Dec 2025
Jute industry faces crisis in 2025
The jute industry had a tough year in 2025.
There wasn't enough raw jute because farmers started growing other crops like maize, which gave them more money.
This made the price of jute go up a lot.
The government had to let more plastic bags be used for packing food because there weren't enough jute bags.
Many jute mills had to cut back on work, and some even shut down.
The government tried to fix the problem by setting limits on how much jute could be stored, but it didn't help much.
People in the industry say the government didn't do enough to help when prices were low, and now it's too late.
The jute industry faced a crisis in 2025 due to a raw material shortage and record-high prices.
Farmers shifted to alternative crops like maize, leading to a decrease in jute cultivation.
Jute acreage during the Kharif season decreased to 5.56 lakh hectares, down from the normal 6.60 lakh hectares.
The government allowed the use of plastic bags for foodgrain packaging due to the jute shortage.
Jute mills faced financial stress, with many cutting shifts and operating days, leading to job insecurity for workers.
- Who
- Jute industry stakeholders, including farmers, mill workers, and government officials
- What
- A crisis in the jute industry due to raw material shortage and price surge
- When
- Throughout 2025, with significant developments in December 2025
- Where
- Primarily in West Bengal and eastern India
- Why
- Due to a mismatch between raw jute availability and statutory packaging demand, farmers shifting to alternative crops, and government policy changes
- Raw jute acreage (2025 Kharif season)
- 5.56 lakh hectares
- Normal jute acreage
- 6.60 lakh hectares
- Minimum support price (MSP) of raw jute (TD-3 grade)
- ₹5,650 per quintal
- Raw jute price range (2024-25 to 2025-26)
- ₹4,700 to ₹11,000 per quintal
- Estimated foodgrain packaging requirement
- 19 lakh bales
- Final jute allocation for packaging
- 7.8 lakh bales
- Jute sector revenue
- ₹10,000 crore
- Direct mill workers supported
- 2.4 lakh
- Farmers supported
- 5 lakh