The Centre has approved a Rs. 315 increase in the Minimum Support Price (MSP) of raw jute for the marketing season of 2025-26. The new MSP for raw jute will be set at Rs. 5,650 per quintal, up from Rs. 5,335 per quintal for the previous season.
This increase follows the government’s long-term policy of linking the MSP to the average cost of production. Since 2014-15, the MSP of raw jute has risen from Rs. 2,400 per quintal to the current level, a growth of Rs. 3,250 per quintal (2.35 times). In total, the government has paid Rs. 1,300 crore in MSP to jute farmers between 2014-15 and 2024-25, compared to Rs. 441 crore from 2004-05 to 2013-14.
The jute industry supports the livelihoods of approximately 40 lakh farm families, directly or indirectly. About 4 lakh workers are employed in jute mills and related trades. Last year, jute was procured from 1.7 lakh farmers. West Bengal accounts for 82% of jute production, with Assam and Bihar contributing 9% each.
The Jute Corporation of India (JCI) will remain the central government’s nodal agency for price support operations, according to a statement from the Ministry of Agriculture & Farmers Welfare. The government will fully reimburse any losses JCI incurs during these operations, the statement added.
