
The Cabinet Committee on Economic Affairs (CCEA), chaired 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 has been set at Rs. 5,650 per quintal, marking a Rs. 315 increase from the previous year’s MSP of Rs. 5,335 per quintal for 2024-25.
Key Highlights:
- The MSP ensures a 66.8% return over the all-India weighted average cost of production.
- This increase aligns with the government’s principle of fixing MSPs at least 1.5 times the cost of production, a commitment announced in Budget 2018-19.
- Since 2014-15, the MSP for raw jute has risen significantly, from Rs. 2,400 to Rs. 5,650 per quintal, representing a 2.35x growth.
Jute Industry Impact:
- The livelihood of 40 lakh farm families depends on the jute industry.
- 4 lakh workers receive direct employment through jute mills and trade.
- West Bengal contributes 82% of the jute production, with Assam and Bihar accounting for 9% each.
- Last year, jute was procured from 1.7 lakh farmers, ensuring price support.
Operational Details:
The Jute Corporation of India (JCI) will continue as the nodal agency for price support operations. Any losses incurred in these operations will be reimbursed by the Central Government.
This increase reflects the government’s commitment to supporting jute farmers and strengthening the jute industry’s economic viability.