The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved a hike in the Minimum Support Price (MSP) of raw jute by Rs 275 to Rs 5,925 per quintal for the marketing season 2026-27.
According to the government, the revised price ensures a return of 61.8 per cent over the all-India weighted average cost of production.
The government said the announced MSP is in line with its 2018-19 Budget commitment of fixing MSPs at a level of at least 1.5 times the all-India weighted average cost of production.
The MSP for raw jute has risen from Rs 2,400 per quintal in 2014-15 to Rs 5,925 per quintal in 2026-27 — an increase of Rs 3,525 per quintal, or nearly 2.5 times, over the period.
The government further said that the MSP amount paid to jute-growing farmers during 2014-15 to 2025-26 stood at Rs 1,342 crore, compared with Rs 441 crore during 2004-05 to 2013-14.
The Jute Corporation of India (JCI) will continue to function as the Central government’s nodal agency for undertaking price support operations. Any losses incurred during such operations will be fully reimbursed by the Centre.
The decision is expected to provide remunerative prices to jute farmers and ensure price stability in the domestic market during the upcoming marketing season.
