Cabinet sets Rs 5,650 MSP for raw jute for 2025-26 season

The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Price (MSP) for raw jute for the 2025-26 marketing season.

The MSP for TD-3 grade raw jute is set at ₹5,650 per quintal, reflecting a 6% rise from the previous season’s rate, Union Minister Piyush Goyal stated.

#WATCH | Delhi | Announcing Cabinet decisions, Union Minister Piyush Goyal says, "The Cabinet has approved MSP for Raw Jute at Rs 5,650 per quintal (for Marketing season 2025-26)..." pic.twitter.com/u6bGV7EkPd

— ANI (@ANI) January 22, 2025

Enhanced Support for Jute Farmers

The revised MSP guarantees a return of 66.8% over the all-India weighted average production cost. This decision is poised to benefit approximately 1.7 lakh jute farmers and indirectly impact around 40 lakh families associated with jute farming.

The increase is part of the government’s commitment to provide at least 1.5 times the production cost as MSP, a policy announced in the 2018-19 Budget.

Significant Growth Over the Years

The MSP for raw jute has seen a substantial rise over the years, increasing from ₹2,400 per quintal in 2014-15 to ₹5,650 per quintal in 2025-26, marking a 2.35-fold growth. During the period 2014-15 to 2024-25, jute farmers received ₹1,300 crore in MSP payments, compared to ₹441 crore disbursed between 2004-05 and 2013-14.

Regional Impact and Employment

Jute farming is heavily concentrated in West Bengal, which accounts for 82% of production, while Assam and Bihar contribute 9% each. The jute industry provides direct employment to about 4 lakh workers and sustains the livelihoods of 40 lakh families.

Role of the Jute Corporation of India (JCI)

The Jute Corporation of India will continue as the Central Government’s nodal agency for Price Support Operations. Any losses incurred during these operations will be fully reimbursed by the Central Government to ensure stability in the jute market.

This decision highlights the government’s focus on enhancing income stability for jute farmers, boosting the financial sustainability of the industry, and supporting the rural economy through targeted interventions.