New Delhi: The Central Government has increased the Minimum Support Price (MSP) of raw jute by ₹275 per quintal for the 2026-27 marketing season, providing a significant boost to jute farmers across the country.
The decision is expected to enhance farmers’ income and ensure better returns for their produce.
Cabinet Committee Approves Higher MSP
The revised MSP for raw jute was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.
According to an official statement, the MSP for raw jute (TD-3 grade) for the 2026-27 season has been fixed at ₹5,925 per quintal.
61.8% Margin Over Production Cost
The government stated that the new MSP ensures a return of 61.8% over the all-India weighted average cost of production. This aligns with the Centre’s policy of fixing MSP at least 1.5 times the average production cost to safeguard farmers’ interests.
The newly announced MSP is ₹275 higher than the 2025-26 season.
MSP More Than Doubled Since 2014-15
The MSP for raw jute has increased from ₹2,400 per quintal in 2014-15 to ₹5,925 per quintal in 2026-27 — a rise of ₹3,525 per quintal, representing nearly a 2.5-fold increase over the past decade.
Between 2014-15 and 2025-26, jute farmers received ₹1,342 crore as MSP payments, compared to ₹441 crore during 2004-05 to 2013-14, reflecting stronger income support measures.
Price Support Operations to Continue
The Jute Corporation of India will continue to serve as the nodal agency for price support operations. Any losses incurred during procurement will be compensated by the Central Government.
India Leads Global Jute Production
India is the world’s largest producer of raw jute. Over 99% of the country’s production comes from West Bengal, Bihar, Assam, Odisha, and Andhra Pradesh.
West Bengal alone accounts for more than 80% of total production, owing to its favourable alluvial soil and climatic conditions, followed by Bihar and Assam.
The MSP hike is expected to further strengthen India’s jute sector and provide much-needed financial stability to lakhs of farmers dependent on the crop.
