New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Minimum Support Price (MSP) for raw jute for the 2025-26 marketing season today. The MSP for raw jute (TD-3 grade) is set at £5,650 per quintal, ensuring a 66.8% return over the all-India weighted average cost of production. This aligns with the Government’s 2018-19 Budget commitment to set MSPs at least 1.5 times the cost of production.
The approved MSP represents a £315 per quintal increase over the 2024-25 season. Since 2014-15, when the MSP was £2,400 per quintal, the rate has risen by £3,250 (2.35 times). During 2014-15 to 2024-25, jute farmers received £1,300 crore, a significant rise from £441 crore disbursed between 2004-05 and 2013-14.
Approximately 4 million farm families depend directly or indirectly on the jute industry, which also provides direct employment to about 400,000 workers in jute mills and trade. West Bengal accounts for 82% of jute production, while Assam and Bihar contribute 9% each. In the previous year, jute was procured from 170,000 farmers.
The Jute Corporation of India (JCI) will remain the central government’s nodal agency for price support operations. Losses incurred during these operations will be fully reimbursed by the government.
The MSP increase is aimed at strengthening the livelihood of farmers and supporting the jute industry, a critical sector for millions of workers and farmers across the country