The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has sanctioned a rise of Rs 275 per quintal in Minimum Support Prices (MSP) for raw jute in the 2026-27 marketing season. The MSP for raw jute (TD-3 grade) is set at Rs. 5,925 per quintal, ensuring a 61.8% return over the all-India weighted average cost of production. This decision aligns with the government’s commitment to fixing MSP at a minimum of 1.5 times the all India weighted average cost of production.
The approved MSP for raw jute in the 2026-27 season marks an increase of Rs 275 per quintal compared to the previous season. Over the years, the government has raised the MSP of raw jute significantly, from Rs 2,400 per quintal in 2014-15 to Rs. 5,925 per quintal in 2026-27, representing a substantial increase of Rs 3,525 per quintal or a 2.5 times rise.
During the period from 2014-15 to 2025-26, jute growing farmers received an MSP amounting to Rs 1,342 crore, while from 2004-05 to 2013-14, the amount stood at Rs 441 crore. The Jute Corporation of India (JCI) will retain its role as the Central Government Nodal Agency for price support operations, with any losses incurred in such operations fully reimbursed by the Central government.
India, the largest raw jute producer globally, concentrates over 99% of its production in states like West Bengal, Bihar, Assam, Odisha, and Andhra Pradesh. West Bengal leads the production, contributing over 80% of the total output due to favorable alluvial soil and climate conditions, followed by Bihar and Assam.
