New Delhi: The government has decided to raise the Minimum Support Price (MSP) for raw jute. For the 2025-26 season, the Cabinet Committee on Economic Affairs (CCEA) which is headed by Prime Minister Narendra Modi has set the MSP for Raw Jute (TD-3 grade) at Rs 5,650 per quintal, an increase of Rs 315. This hike will help farmers by providing a return of 66.8 per cent above the average cost of production.
The approved Minimum Support Price (MSP) for raw jute in the 2025-26 marketing season aligns with the government’s goal of setting MSP at least 1.5 times the all-India average cost of production as outlined in the 2018-19 Budget. According to an official statement following the Cabinet Committee on Economic Affairs (CCEA) meeting, the new MSP for raw jute is Rs 5,650 per quintal, marking an increase of Rs 315 compared to the previous season (2024-25).
“Government of India has increased MSP of Raw jute from Rs.2400 /-per quintal in 2014-15 to Rs.5,650/- per quintal in 2025-26, registering an increase of Rs. 3250/- per quintal (2.35 times).” the cabinet said. The MSP amount paid to jute growing farmers, during 2014-15 to 2024-25, was Rs 1300 crore while from 2004-05 to 2013-14, the amount paid was Rs 441 crore, the statement said.
The jute industry supports the livelihoods of around 40 lakh farm families, either directly or indirectly. Approximately 4 lakh workers are employed in jute mills and trade. Last year, jute was purchased from 1,70,000 farmers. A majority, 82 per cent, of jute farmers are from West Bengal, while Assam and Bihar each contribute 9 per cent to the country’s jute production.
The Jute Corporation of India (JCI) will remain the central government’s main agency for handling Price Support Operations. Any losses from these operations will be fully reimbursed by the central government, according to the official statement.
