Assam has registered significant increase in production of jute and the increase is more than double than the national average. Jute growers of the state can hope to bank on the central government’s policy of mandatory use of jute in packaging of rice and sugar to get remunerative price for their produce in times of distress but diversifying jute products remains the key challenge for long-term sustainability. Official data shows that jute production in the state went up by over 68% when at the national level the increase was about 32%. The boost in production is attributed to the National Jute Board (NJB) supporting scientific cultivation by supporting jute growers through various schemes aimed at increasing production and productivity. Special focus on enactment of the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act, 1987 has also helped boosting the production. The Act makes it mandatory to use 100% jute sacks for packaging food grains and 20% for sugar. The central government purchases jute sacking bags worth Rs 9000 crore and the Jute Commissioner places the order to jute mills for production of these bags under Production-cum-Supply Order. Increase in this amount and quantities of jute sacks procured by more than 16% over the last five years point towards renewed focus on implementation of the Act. According to official estimates, the government procures 70% of the total jute production at Minimum Support Price which prevents distress sale by jute growers. The government procured about 188 lakh bales of jute bags worth Rs 56,000 crores over the past five years which indicates the size of the assured market for jute growers. Information tabled on the Lok Sabha by the central government shows that over the last eight years, the scheme Jute-ICARE (Improved Cultivation and Advanced Retting Exercise) covered 1.63 lakh hectares of land 3.64 lakh jute growers in 212 blocks. Distribution of 4.13 MT of certified jute seeds and agronomic equipment under the scheme resulted in increased productivity from 22/23 quintals a hectare to 26/28 hectares and increase in jute growers’ income by about Rs 10,000 a hectare, the government states. Total production of raw jute in the state increased from 6.57 lakh quintals in 2017-18 to 11.70 lakh quintals in 2022-23. Rising paddy procurement in Assam hold out promises on increasing demand for jute sacking bags, which in turn can lead to further expansion of jute cultivation in the state. The state procured a record quantity of 5.65 lakh MT of paddy and has retained the target of achieving 10 lakh MT paddy procurement this year. The state achieving the target will fuel demand for more jute sacking bags and this has triggered opportunities of entrepreneurial ventures in production, procurement and supplies of jute bags. The MSP for jute increased by Rs 250 to Rs 4750 a quintal for the year 2022-23 which assures a minimum of 50% as margin of profit. The Commission for Agricultural Costs and Prices, Department of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare in its report titled ‘Prime Policy for Jute 2022-23 Season’, however, highlighted that “market prices of jute prevailed well above the MSP in all years except in 2017- 18, when the average market price was marginally higher than the MSP. In order to ensure MSP to farmers, JCI therefore procured about 3.4 lakh bales of raw jute which was the highest procurement during the last five years.” The Commission harped on the need to create awareness among jute growers on the benefits of high-quality fibres and points out that large share of jute produced in India is of low quality and share of good quality jute fibre is less than 35 per cent against the target of 50 per cent. The central and state governments implementing its recommendation for providing appropriate price incentive for producing high quality fibre for ensuring high returns will be crucial to bring about a change in the situation. It also recommends “diversifying beyond traditional use of jute in packing” into manufacture of non-conventional products, which have high demand in the domestic and in the international market. The report also presents the paradox of India being the highest jute producing country but accounting for only 7% of global jute exports while Bangladesh accounts for nearly 75% of global jute exports which is behind in terms of total production. While formulating future policies the policy makers need to take into consideration another key observation of the Commission in its report that jute trade in domestic market is dominated by private players and majority of small and marginal jute growers are at the mercy of traders for determination of moisture by “a highly subjective hand and eye method of inspection.” The jute growers of the state can eye a larger market by focussing on quality and product diversification.