The major reasons for the price drop are a significant rise in plantation area, announcement of increased minimum support price (MSP) for this season and shutdown of jute mills in the second quarter of 2021. Plantation area had already increased by 1 lakh hectare in 2020-21.
Due to poor production, a total of 15 jute mills had closed in April 2021. The Indian government has already fixed the MSP at ₹4,500 per quintal for this season, which is 6.51 per cent more than the MSP of ₹4,225 per quintal in the previous season.
ALCHEMPro News Desk (KD)
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