In a significant decision aimed at strengthening income security for jute growers, the Government of India has fixed the Minimum Support Price (MSP) of raw jute (TD-3 grade) at ₹5,925 per quintal for the 2026–27 marketing season. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
According to the government, the approved MSP ensures a return of 61.8 percent over the all-India weighted average cost of production. The move aligns with the policy principle announced in the Union Budget 2018–19, under which MSPs are fixed at a minimum of 1.5 times the average cost of production, thereby guaranteeing remunerative prices to farmers.
The newly announced MSP reflects an increase of ₹275 per quintal over the 2025–26 marketing season. A longer-term comparison highlights a substantial upward revision: in 2014–15, the MSP for raw jute stood at ₹2,400 per quintal, which has now risen to ₹5,925 per quintal—an overall increase of ₹3,525 per quintal over roughly 12 years, representing nearly a two-and-a-half-fold rise.
Official data further indicate that between 2014–15 and 2025–26, jute farmers received ₹1,342 crore through MSP operations, compared to ₹441 crore during the period 2004–05 to 2013–14. This reflects a marked expansion in price support interventions over the past decade.
The Jute Corporation of India (JCI) will continue to function as the central nodal agency for procurement of raw jute under MSP operations. The government has clarified that any losses incurred during price support operations will be fully reimbursed by the Centre, ensuring uninterrupted procurement and farmer protection.
Industry observers note that the MSP hike is expected to benefit jute-growing states such as West Bengal, Assam, Bihar, and Odisha, where the crop plays a crucial role in rural livelihoods. By offering assured price support, the decision is likely to encourage higher production, stabilize farmer incomes, and strengthen the rural economy in key jute-producing regions.
Overall, the Cabinet’s decision reinforces the government’s commitment to providing predictable and remunerative returns to farmers while sustaining the long-term viability of the jute sector.
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