MSP for Raw Jute Set at Rs. 5,650 per Quintal for 2025-26 Season

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. For the 2025-26 season, the MSP for Raw Jute (TD-3 grade) has been set at Rs. 5,650 per quintal. This decision will provide jute farmers with a return of 66.8% above the all-India weighted average cost of production. The approved MSP aligns with the government's commitment, announced in the 2018-19 Budget, to set MSP at a level of at least 1.5 times the cost of production.

The new MSP represents an increase of Rs. 315 per quintal over the previous year’s MSP of Rs. 5,335 for the 2024-25 season. Since 2014-15, the MSP for Raw Jute has risen from Rs. 2,400 per quintal to Rs. 5,650 per quintal, marking a significant increase of Rs. 3,250 per quintal (a 2.35-fold rise).

Between 2014-15 and 2024-25, the total amount paid to jute farmers under MSP was Rs. 1,300 crore, a substantial increase compared to the Rs. 441 crore paid during the 2004-05 to 2013-14 period.

The jute industry supports the livelihoods of around 40 lakh farming families, both directly and indirectly. In addition, about 4 lakh workers are employed in jute mills and trade. Last year, jute was procured from 1.7 lakh farmers, with 82% of the production coming from West Bengal, while Assam and Bihar each contributed 9%.

The Jute Corporation of India (JCI) will continue to serve as the central agency for price support operations. Any losses incurred during these operations will be reimbursed by the central government.